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Iggy Azalea’s MOTHER token launches on Solana and increases its value by 230 times
- After launching with a market cap under $50,000, the market cap jumped to $16.6 million.
- Allegations of insider trading appeared, but 2.4 million MOTHER tokens were burned.
It feels like it’s 2021 all over again as celebrities are flocking to the cryptocurrency market. But this time NFTs are not the strong point. Instead, these famous people are launching tokens, specifically memecoins in their names.
The latest personality in this activity was Iggy Azalea who launched her token with the ticker “MOTHER”. According to DEXSceener, the MOTHER skipped 230x a few hours after launch.
Azalea follows as Jenner
The token was the second celebrity-linked cryptocurrency Solana [SOL] after Caitlyn Jenner’s first move. At the time of writing, the market capitalization of the MOTHER cryptocurrency was $16.6 million.
The price, however, was at $0.016, an increase of 81.34% in the last 24 hours. However, AMBCrypto noticed one thing with both JENNER and MOTHER: they were both launched by the same “influencer marketing guy.”
According to our investigation, a certain Sahil Arora took credit for the deployment. And both Iggy Azalea and Caitlyn Jenner have not denied the claims.
However, there was one thing common to both memecoins: controversy. For example, when JENNER was launched, the American media personality accused Arora of trying to “con” her and the community.
It was a similar situation for Australian rapper Azalea too. However, it seemed that the strategy was planned so that the token could attract a lot of attention and people would believe in it.
Insiders may have gotten retail into trouble
Even though the MOTHER token has produced gains for many holders, there have been allegations of insider trading. Leading the charge was Bubblemaps, a blockchain data visualizer.
For context, Insider activity occurs when someone with non-public knowledge of a project uses the information to their advantage.
In most cases, this happens at the expense of traders. According to Bubblemaps, insiders purchased 20% of the MOTHER token at launch.
Source: X
Additionally, the handle noted that those involved had already sold $2 million worth of tokens before Azalea announced it publicly.
Providing more information on the incident, Bubblemaps explained that,
“Wallet JEEt3D1, known as @invicible on http://pump.fun, purchased 109T MOTHER (10% of supply) before splitting it into 7 wallets. Of these, 89T tokens have already been sold.”
He further added that the portfolio had made gains of $1.4 million with another $400,000 in unrealized profits. As of press time, Azalea had not responded to the claims.
Will burning the tokens save the MOTHER?
Instead, the MOTHER token’s official X handle shared that it was burning some of the supply. In cryptocurrencies, token burning ensures that cryptocurrency is scarce.
Therefore, this helps the value increase as demand increases. Second data from Solscan2.46 million MOTHER tokens were burned.
If more of the supply was burned, the price could rise. Furthermore, this could increase predictions that the memecoin could reach $50 million in market capitalization.
Despite the green candles that MOTHER may have produced, there is no certainty that the token will remain relevant in the long term.
Furthermore, there were claims in some corners that the involvement of celebrities in the token launch was a sign of the culmination of this cycle. At the same time, others argued that it was just a phase destined to fade away.
Regardless of your stance, retail investors may need to be cautious. Most of these tokens have no real utility or foundation.
There is also the possibility that more tokens like MOTHER will emerge and that the liquidity from Iggy Azalea’s project could change the position. If this were the case, the price of the cryptocurrency could collapse.
Light Solana’s [SOL] Price forecast 2024-2025
Following the law of supply and demand, this could lock in the price of MOTHER. Whether the token proves otherwise, time will tell.
But as of now, more tokens distributed in the name of celebrities may be on the rise.
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