Over 30 celebrity-backed tokens on the Solana blockchain have experienced a sharp decline, with prices dropping more than 73% from their peak levels in late July and early August 2025 [1]. These tokens, launched in June 2024 as part of a wave of celebrity-driven memecoins, were heavily promoted on social media and leveraged the influence of stars from music, sports, and entertainment to attract retail investors. However, the lack of utility, transparent development plans, or long-term vision has led to widespread skepticism and financial losses for many participants.
The tokens were part of a broader trend where celebrity endorsements became a key marketing tool in the crypto space. While the initial hype led to rapid price surges, the absence of tangible use cases or sustainable ecosystems caused the value of these projects to quickly erode. Investors who entered during the early stages of the hype cycle are now seeing substantial losses, with some tokens losing more than two-thirds of their value in just a few months [2].
One notable example is a high-profile token associated with a major celebrity whose name is often linked to a well-known brand. The token, known as YZY, reached a peak price of $3.163 within 40 minutes of its launch but dropped to around $0.77 by the end of the day. This dramatic shift was attributed to a heavily centralized distribution model, with a single wallet reportedly dumping over 700 million tokens—equivalent to 70% of the total supply—into the market [3]. The token’s collapse was widely interpreted as a textbook pump-and-dump scheme, with early insiders reaping millions in profits while retail investors bore the brunt of the losses.
The centralized control and rapid sell-off of YZY tokens raised additional concerns about the integrity of celebrity-backed crypto projects. Reports emerged of unauthorized social media activity, with hackers using fake accounts of high-profile musicians to promote the token [4]. This manipulation further eroded trust and highlighted the risks associated with investing in projects driven by social media buzz rather than solid fundamentals.
Analysts have warned that the YZY token’s trajectory is not an isolated incident but a reflection of broader patterns in the memecoin market. While celebrity endorsements can generate significant short-term interest, they do not guarantee long-term success or investor returns. The crash of YZY and other similar tokens serves as a cautionary tale for retail investors, emphasizing the importance of due diligence and risk management [5].
For the Solana blockchain, the incident underscores the challenges of maintaining a balance between fostering innovation and preventing the proliferation of speculative or potentially fraudulent projects. While Solana continues to offer fast, low-cost transactions, the open nature of its platform also makes it a potential breeding ground for hype-driven tokens that lack real-world utility [6].
As the crypto market matures, investors are increasingly advised to focus on projects with transparent governance, clear development roadmaps, and sustainable value propositions. The recent crash of celebrity tokens on Solana highlights the need for a more cautious and informed approach to investing in the volatile world of memecoins.
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Sources:
[1] https://coinmarketcap.com/community/articles/68aaf8def6f9732ed734b7ec/
[2] https://www.ainvest.com/news/ye-yzy-token-plummets-70-launch-insider-control-market-sell-2508/
[3] https://www.coinspeaker.com/13-wallets-bag-24m-yzy-token-crashes/
[4] https://bitcoinist.com/hackers-celebrities-instagram-dubious-memecoin/
[5] https://icobench.com/news/yzy-coin-price-crash-exposes-celebrity-crypto-risks-as-traders-lose-millions/
[6] https://www.ainvest.com/news/celebrity-backed-meme-coins-yzy-token-crash-cautionary-tale-retail-investors-2508/