Pop singer Jason Derulo has come under fire for endorsing a meme coin that quickly lost its value, sparking discussions about the responsibility of celebrities in risky financial endorsements.
These incidents not only result in financial losses but also pose a risk to the reputations of the celebrities involved and undermine trust in the cryptocurrency market.
On June 23, Derulo announced the launch of his meme coin, JASON, to his 3.5 million followers on X. Unfortunately, the coin’s value plummeted by over 72% within minutes, causing disappointment among investors and fans.
In response to the backlash, Derulo blamed Sahil Arora, an Indian national linked to previous cryptocurrency controversies, for misleading him. He vowed to fix the situation and stated on X, “Damn Sahil got me! That’s okay, that’s motivation to take this all the way! I just bought $20,000 worth. In this for my fans for the long haul, going to do everything in my power to send this sh*t to the moon.”
In an apology video, the American singer reaffirmed his commitment to the coin’s recovery, making it his life’s goal.
Despite Derulo’s proactive approach, doubts remain. Influential figures in the crypto community, including SlumDOGE Millionaire and on-chain detective ZachXBT, questioned his innocence.
SlumDOGE Millionaire commented, “Bro made $1 million off his rug and put $20,000 back in the chart lol. You’re not stupid or new to crypto Jason, you know exactly what was happening, don’t play dumb now.”
ZachXBT added, “You are not sorry at all; you have promoted so many crypto scams over the years I have lost track.”
This recent incident is part of a larger pattern involving Arora, who has launched several other meme coins associated with celebrities. He recently hinted at a collaboration with American rapper Tyga for a new meme coin, but Tyga has not publicly discussed or endorsed any cryptocurrency token, raising concerns about his involvement.
Arora has also teased a Ronaldinho Gaúcho meme coin following a cryptic post from the Brazilian footballer. Although Gaúcho did not explicitly promote the meme coin, Arora’s quick sharing of a contract address after Ronaldinho’s post has led to speculation about the footballer endorsing meme coins.
Arora, the alleged mastermind behind multiple pump and dump schemes, has acted as a middleman for celebrities, taking advantage of their lack of experience with web3. He launched and promoted the “RICH” token by hacking American rapper Rich the Kid’s X account. Arora then proceeded with other celebrity-themed coins, such as JENNER and a token presale under the guise of Australian musician Iggy Azalea. All of these tokens experienced significant price crashes shortly after launch, with Arora pocketing the profits. The celebrities involved have since distanced themselves from him.
Read more: Football legend Ronaldinho plans to reenter the crypto market, despite past controversy.