5 Most Famous Celebrity-Endorsed Crypto Scams

While celebrities can raise a project’s profile, their involvement does not make the project legitimate. In fact, celebrity-backed projects fared terribly in previous cryptocurrency cycles. Still, inexperienced investors have continued to believe in these projects despite repeated failures.

Even without a practical use case, platforms like Pump.fun make it easy to introduce memecoins. That has led to a slew of highly publicized failures and alleged scams. Here are five notable examples of when tokens backed by celebrities went awry.

1. Haliey Welch’s Hawk Tuah Token

Haliey Welch became famous for a viral comment during an interview. Riding her newfound fame, she launched a memecoin called Hawk Tuah (HAWK). Despite lighthearted endorsements, including one from Mark Cuban, the token’s launch on December 4 turned disastrous.

• Launch Failure: HAWK lost 91% of its value within three hours.
• Allegations: Accusations of insider trading and sniping surfaced.
• Response: Crypto investigator “Coffeezilla” criticized the launch but denied it was a rug pull.
• Current Status: No investigation has been announced, but Welch’s reputation has taken a hit.

2. Andrew Tate’s DADDY Token

Andrew Tate, a controversial influencer, launched Daddy Tate (DADDY), claiming it symbolized male empowerment. Despite initial hype, the token fell victim to pump-and-dump schemes.

• Insider Trading: Onchain analytics revealed insiders held 30% of the token’s supply, worth $45 million.
• Unfair Practices: Large purchases were made before public promotion, raising concerns about integrity.
• Current Status: Although Tate didn’t sell his tokens, the project lost credibility.

3. Jack Doherty’s McLaren Token

Streamer Jack Doherty used his controversial fame to launch McLaren (MCLAREN). Known for reckless stunts, Doherty’s token quickly turned into a scandal.

• The Rug Pull: Doherty allegedly bought tokens with multiple wallets, hyped them on livestreams, then sold off his holdings, crashing the price.
• Public Outrage: Social media backlash was immediate, but no legal action has been taken.
• Result: Doherty deleted promotional content, leaving investors with losses.

4. Sean Kingston’s KING Token

Sean Kingston, famous for his music, entered the crypto space with the launch of King (KING). Despite an initial market cap of $4 million, the token crashed within minutes.

• Legal Troubles: Kingston faced fraud charges unrelated to the token, involving over $500,000 in stolen goods.
• Current Status: KING’s collapse added to his existing legal issues, further damaging his reputation.

5. Davido’s Memecoin Flop

Afrobeat star Davido launched a Solana-based memecoin named Davido (DAVIDO). The token crashed shortly after its release.

• Token Flip: Davido spent 7 SOL to buy 20.3% of the supply and later sold for $500,000, leaving the coin worthless.
• Public Warning: Nigeria’s SEC issued a caution about memecoin risks.
• Impact: While no legal action has been taken, the incident harmed Davido’s image.

Lessons from Celebrity-Endorsed Crypto Scams

Celebrity involvement in crypto can lure inexperienced investors, but it rarely guarantees success. Below are some key takeaways:

Celebrity-endorsed crypto projects continue to attract attention but remain fraught with risks. Experienced investors often view these tokens as red flags, not opportunities.