Crypto Trader Ansem Learns Valuable Lessons from the Risks of Celebrity-Backed Memecoins

The Bitcoin Geek
4 Min Read
Crypto Trader Ansem Learns Valuable Lessons from the Risks of Celebrity-Backed Memecoins

Popular crypto trader Ansem, well-known in the crypto world, recently shared his thoughts on memecoins. After facing criticism for supporting failed celebrity-backed tokens, he now says he’s more careful about the projects he endorses. Speaking at the Messari Mainnet conference in New York, Ansem admitted he would handle celebrity-themed tokens differently today.

He explained how having a large following online often makes it seem like he’s endorsing projects even if he’s only loosely connected. Now, he’s learned to be more cautious. “You have to be careful with assuming the best out of everybody,” Ansem said.

The Rise and Fall of Celebrity Memecoins

Memecoins saw a major rise this year, especially after the launch of Pump.fun on Solana. This platform made it easy for users to create their own tokens. Celebrities from the sports, music, and entertainment industries jumped on the trend, promoting their own tokens.

But many of these celebrity-backed coins have failed, including some Ansem had supported. For example, rapper Sexyy Red’s team reportedly held 90% of the PRESI token, and Caitlyn Jenner’s token dropped 99% from its peak.

While some believe celebrities can help bring attention to crypto, others see these tokens as risky investments that mostly benefit the famous while hurting regular traders.

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Moving Beyond Memecoins: Ansem’s New Direction

After facing backlash for supporting these risky projects, Ansem is now shifting his focus. He recently launched a new blockchain project called Bullpen and even started a boxing career. According to Debra Nita from YAP Global, Ansem is entering a “new era” by exploring projects beyond memecoins and celebrity tokens.

Ansem is now more focused on projects that could have a big impact on the crypto industry, like emerging blockchain technologies called alt-VMs. These include systems like Move-VM and Solana’s SVM, which are alternatives to the popular Ethereum Virtual Machine (EVM).

Even though memecoins have cooled off, Ansem believes they still have a future. He points out that the Solana blockchain made it easier for people to trade memecoins with smaller amounts of money. The lower fees and improved user experience on Solana helped fuel the memecoin boom, compared to Ethereum’s higher fees in earlier cycles.

Ansem also noted that many traders remember how tokens like DOGE rallied in the past, which keeps the trend alive. He explained that memecoins often gain traction on new Layer 1 blockchains as people look for ways to spend their funds.

Conclusion: A Lesson for the Future

Memecoins are often seen as a joke, but Ansem argues they reflect important trends in the crypto world. Despite their volatility, they capture the public’s attention and can offer insight into where the market is heading. As Ansem continues to learn from his experiences, he hopes to be more thoughtful in the projects he supports and the impact of his words in the crypto community.

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