Investors Urged Caution as Meme Token Gains Attention
A new celebrity-backed memecoin featuring rapper Soulja Boy has drawn scrutiny from the crypto community amid rug pull concerns. Blockchain investigator ZachXBT warned traders to exercise caution after Jesse Pollak, co-founder of the Base network, shared a public receipt showing a $1,500 investment in the token.
ZachXBT highlighted Soulja Boy’s history with tokens like RapDoge, Orion, The Life Token, Flokinomics, and SafeMars, many of which were abandoned or involved in rug pulls. In crypto terms, a rug pull occurs when developers exit a project, taking investors’ funds, often shortly after launch.
The rapper’s involvement in crypto extends to NFT collections, most of which have since failed to deliver promised utility or were removed from marketplaces. According to ZachXBT, Soulja Boy earned approximately $730,000 from promotions during the 2021 bull market, charging significant fees per social media post.
Despite the hype, the new SOULJABOY token has seen limited traction, with a market capitalization of $85,000 and 331 holders since its launch. Soulja Boy publicly addressed his past promotions, acknowledging a lack of due diligence and distancing himself from fraudulent activity linked to third parties.
This incident underscores the risks of celebrity-backed cryptocurrency projects. Investors are urged to research token histories, verify project teams, and remain cautious of high-profile endorsements, as rug pulls and abandoned projects continue to pose a threat in the crypto space.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.