**Bitcoin Surpasses $100,000 During Crypto Comeback, Yet Celebrity Memecoins Continue to Pose a Hazardous Bet**
Bitcoin has successfully breached the $100,000 threshold, a significant achievement that has rekindled enthusiasm for cryptocurrency. This upswing follows Donald Trump’s reelection and expectations of a pro-crypto government, motivating investors to channel funds into the digital currency. Following the notorious crypto downturns of 2022, Bitcoin’s unprecedented ascent indicates a potential revival of public interest in digital assets.
However, Bitcoin isn’t the sole cryptocurrency making waves. The memecoin phenomena seems to be resurging as well. On the same day Bitcoin reached its landmark high, Hailey Welch, the viral “Hawk Tuah” sensation, unveiled her own cryptocurrency token, $HAWK. The token initially skyrocketed to a market cap of $500 million but swiftly plummeted, currently valued at approximately $36 million. Supporters of Welch flocked to social platforms to express their losses, with many asserting they had lost thousands of dollars. For some, this scenario feels strikingly similar to the speculative excitement of 2021.
### The Celebrity Crypto Dilemma
The previous significant crypto craze in 2021 witnessed numerous celebrities and influencers entering the fray, either promoting altcoins or launching their own branded memecoins. While cryptocurrency is naturally precarious due to its volatility and lack of regulation, the participation of public figures introduced an additional dimension of uncertainty. A number of these celebrity-endorsed initiatives turned out to be fraudulent, leaving followers and investors with worthless tokens.
A prevalent scam in the memecoin arena is known as the “rug pull.” Here’s the typical sequence: A celebrity or influencer introduces a memecoin, encouraging their followers to invest as a means of backing their favored creator while potentially profiting. However, prior to the token’s public launch, the creator and their associates often secure a substantial quantity of tokens for themselves at a minimal price. When the token becomes available to the public, and its price surges due to fan purchases, these insiders unload their stakes, resulting in a steep drop in the token’s value. Fans are left with an asset nearly devoid of worth and no means to recover their funds.
In spite of warnings from regulatory bodies like the U.S. Securities and Exchange Commission (SEC), many individuals persist in falling for these schemes. Back in 2018, the SEC alerted investors against taking financial advice from celebrities, mentioning that social media influencers are frequently compensated promoters rather than genuine investment experts. Nevertheless, the charm of parasocial relationships—where fans develop a sense of personal connection with influencers—often leads people to place their trust in these public figures, even when it’s unjustifiable.
### The $HAWK Incident
The recent introduction of $HAWK exemplifies how these scams typically operate. According to YouTuber Coffeezilla, who investigates cryptocurrency fraud, a large portion of $HAWK tokens was concentrated in a limited number of wallets prior to its public release. Once the token launched, these insiders swiftly liquidated their holdings, resulting in a dramatic decrease in the token’s value. Welch and her team have encountered considerable backlash, yet for the fans who invested, the chance of recovering their losses appears slim. Lacking utility or intrinsic value, $HAWK is unlikely to regain its original appeal unless a fresh influx of buyers can be persuaded to invest.
### Takeaways
The resurgence of Bitcoin and the memecoin phenomenon may present an enticing chance to earn quick profits, but the stakes are higher than ever. Cryptocurrency is still a speculative and volatile landscape, and celebrity-backed tokens are frequently mere cash grabs. If history has shown us anything, it’s that relying on celebrities for financial advice—or investment opportunities—is a surefire path to trouble.
Thus, before you plunge into the crypto realm, bear in mind: not everything that glitters is Bitcoin.