Why Creators Should Never Launch Memecoins

It's just not worth the risk.

Author

Shira Lazar
December 08, 2024

It feels like we’ve been here before. Memecoins are the new shiny thing in the crypto world, and creators are diving in headfirst. 

Bitcoin and Ethereum have been reaching all-time highs in the past few weeks, which could be the uptick behind this trend in the past year.

Traders were furious, accusing Welch’s project of being a pump-and-dump. Welch denies the claims, saying neither she nor her team sold a single token. Yet, blockchain data shows wallets sniping massive amounts of the coin right at launch, leaving fans (and their wallets) in the dust. 

We reported on this at What’s Trending- it’s a good and quick watch if you want to ge of what went down:

Sound familiar? That’s because we saw this with NFTs. 

Back then, celebrities like Kim Kardashian and Logan Paul got slapped with hefty SEC fines for promoting projects without proper disclosure. Sure, some folks made millions, but many were left holding the bag—and it’s looking like meme coins are following the same playbook. Unfortunately, if not handled properly, it could leave those launching them in major legal hot water. 

Now, meme coins are easier to launch, especially with AI involved in. 

Iggy Azalea cashed in with her $MOTHER Coin, and it actually did well—at least for a while. 

Iggy Azalea's meme coin launch was marred by allegations that insiders bought and then dumped $2 million worth of the coin before it was publicly announced, casting a shadow over the integrity of celebrity-endorsed cryptocurrencies.

Creators see the appeal: they’re cheap to make, fun to market, and if they catch fire, they can rake in serious cash. But for every success, there are a dozen crashes that leave investors burned and creators scrambling to save face. 

If you’re a creator thinking about launching one, tread carefully. Get the right team around you and consult a legit lawyer who understands the crypto space.

Transparency is everything, and trust is hard to rebuild once it’s broken. And if you’re a fan considering jumping into the next hot coin, do your research. The hype is real, but so are the risks.

🔥 My Hot Take 🔥: If you're being pitched a memecoin as a project to "promote" or work on, be careful. While being promised a future payout or being paid handsomely to post something can be attractive, it can also be a major liability and not worth it in the long run.

Shira Lazar

I've dealt with this a lot.

I've had to say no to promoting projects because they didn't align with my values or raised concerns about legal implications. Also, get someone who can help you with due diligence on projects before saying yes - this has been a lifesaver for me!

Other headlines to check out:

AI

Creator Economy

Web3

In other news…

I had the honor of moderating the "Her Influencer: Building Your Brand" panel with the incredible Jackie Aina, Drea Okeke, and astronaut Kellie Girardi. We kept it real about how social media, content creation, and digital platforms can help build authentic personal and professional brands.

Shira Lazar on LinkedIn: #powerwomensummit

Being at an event with over 500 powerhouse women in entertainment just hits different. I had the honor of moderating the "Her Influencer: Building Your Brand"…

www.linkedin.com/posts/shiralazar_powerwomensummit-activity-7271296512423276544-tM4m/?utm_source=share&utm_medium=member_ios

Gentle reminder 🤲 

"Success is not final, failure is not fatal: it is the courage to continue that counts." - Winston Churchill

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With gratitude,