Meme tokens have become a staple in recent months, even outpacing blue-chip assets as a source of earnings. The last stage of the meme market includes coins by influencers and celebrities. One of the latest meme tokens, $DADDY, is booming, but there are signs of artificial market activity.
The $DADDY meme token was created by Andrew Tate, the controversial influencer turned crypto shiller. To Tate’s credit, he suggested investing in Solana and using the network when SOL traded at $9. Now, the DADDY token aims to repeat the success of another recent asset, $MOTHER by Iggy Azalea.
Read: Iggy Azalea’s MOTHER Token Records 1,880% Hike In 2 Days, Why This Altcoin Is Likely To Follow
The DADDY token was minted precisely as an answer to MOTHER, and its meteoric rise is following the successful recipe of other similar short-term wonders.
Is DADDY an actively pumped token?
The team behind DADDY is well aware of how memes work and how crypto trading works. DADDY is still an illiquid asset capable of significant daily expansion. With enough marketing, the token is also visible and draws in more traders.
One tool to boost DADDY is a token burn, which has the double effect of limiting the supply and growing social media exposure. Tate claimed to have burned up 40% of the total DADDY supply, with a notional value of $110M.
This valuation, however, is mostly meaningless, as the DADDY trading pairs are rather new, with slippage that could not absorb even a few thousand dollars. Yet the social media hype for the Daddy Tate project is disproportionate.
With such low liquidity, mostly using Solana’s Raydium DEX, DADDY is also extremely easy to pump. For now, the token has only a few hours of trading history, reaching $0.27 on extremely low volumes. As with other meme tokens, it is possible that the trend shifts, exposing many new investors to fast earnings, but also risks of deep losses.
Bubblemaps shows significant wallet clusters that also control a large part of the DADDY supply.
The biggest risk of the project is not from an exit scam, as Tate’s social media persona is hard to hide. In the short term, however, new investors may experience a rug pull as insiders pump and dump the token.
Bubblemaps discovered a cluster of wallets that are very probably connected, and each of them could drain the DADDY liquidity pool. The predictions of Tate selling did not materialize, but the project has enough insiders to sway the price.
Bubblemaps’ discoveries were similar for the $MOTHER token, which has significant insider holdings. MOTHER fluctuated between $0.21 and $0.14 in the past few days and has not experienced a major pump-and-dump for now.
Will DADDY follow the trend of failed celebrity tokens?
The new type of influencer tokens has actually shown more stability compared to older styles of pumps and dumps. Both DADDY and MOTHER are tied to Internet celebrities, and they may be interested in propping up the tokens for extra publicity, instead of immediately dumping on the community.
In addition, the tokens may mimic PEPE or ShibaInu (SHIB), encouraging people to hold on to them as the price skyrockets.
Also read: Celebrity Meme Coins Flood the Crypto Market
There is also a new mood among crypto investors, with some hostility toward “celebrity coins.” Meme tokens arose out of spontaneous Internet culture and were decentralized enough to avoid concerted price fixing. The celebrity coin trend also aims to tap the trend of memetic energy but faces skepticism as a blatant money grab.
The trend to mint new tokens is an extension of previous waves of celebrity endorsements for already existing coins and tokens. Those endorsements have backfired in the past, leading to lawsuits against Kim Kardashian and Floyd Mayweather. But this time, Internet celebrities with insider knowledge can fix the price by directly affecting its Solana liquidity pool.
The DADDY token launch also arrived just days after Jenner (JENNER) marked yet another failure in the celebrity token trend.
Cryptopolitan reporting by Hristina Vasileva
