Violet Vallaya
Crypto investors are turning their attention to character or celebrity meme tokens, favoring these over projects with high fully diluted value (FDV) and low initial market float, a study has found.
“The cryptocurrency market is increasingly favoring attention assets such as celebrity meme tokens, driven by their potential for untapped growth,” crypto exchange Kucoin said in its monthly markets report.
The research highlighted the growing preference for meme tokens with “relatively obscure low-market-cap assets.” As per the report, the shift toward meme coins can be attributed to investors’ frustration with projects that have a high FDV and low initial circulating market capitalizations. “This trend reflects a shift away from projects with high initial valuations that limit retail price discovery and wealth generation.”
FDV represents the total value of a cryptocurrency project if all its tokens, including locked ones, were in circulation. High FDV potentially leads to dilution of token value when locked tokens enter circulation. Investors are now avoiding such tokens due to limited price discovery opportunities for retail investors, making wealth creation challenging.
Highlighting the evolving landscape of investor behavior, the report examines the case of Notcoin, a cryptocurrency where the entire token supply was immediately available upon launch. The report suggests that “tap-to-earn” projects, compared to their counterparts in the “gamefi” and “move-to-earn” sectors, boast demonstrably higher overall participation rates due to their inherently lower barriers to entry and comprehension.
Celebrity meme coins, inspired by internet jokes and often tied to a famous figure, have gained popularity recently — mostly due to their association with well-known personalities and the potential for explosive growth. Recent examples include rapper Iggy Azalea’s “Mother Iggy” (MOTHER) and influencer Andrew Tate’s “Daddy Tate” (DADDY) coins, both of which experienced price surges shortly after launch.
The trend has drawn both excitement and skepticism. Supporters see celebrity meme coins as a way to democratize crypto and generate wealth through community-driven hype.
Critics, however, point to their inherent volatility and the celebrity involvement to be a marketing ploy rather than a sign of long-term value. The recent artwork by renowned digital artist Beeple satirizing celebrity crypto influencers reflected this concern, highlighting the potential risks associated with this speculative investment avenue.
