Fame and failure: 7 celebrity-endorsed crypto scams that went wrong

The 2024 Bitcoin bull market has reignited investors’ hunger for profits, with eager degen traders diving into the memecoin supercycle, chasing volatility and massive gains. 

Sensing opportunity, celebrities have minted tokens under their brands, but many have faced backlashes and been accused of running scams.

Celebrity crypto endorsements have popped up during every bull market, often triggering a jolt of embarrassment among experienced traders when celebrities — or near-celebrities — make impossible promises with token projects. 

While stars can boost a project’s popularity, they offer no guarantee of legitimacy, and despite a poor track record, novice investors continue to fall for celebrity-endorsed tokens.

In past cycles, celebrities shilled crypto projects for profit or launched NFT collections to ride the hype. In this cycle, platforms like Pump.fun simplify issuing memecoins that need no use case — just a community or hype — making them an easy way to launch a celebrity-driven token.

Here are seven celebrity tokens that failed, many of which are now considered potential scams, with the celebrities at risk of class-action lawsuits or civil suits from legal authorities.

HAWK Tuah, scam that thing!

Haliey Welch gained fame in 2024 after a viral moment during an interview, where she made a provocative comment on how to drive men crazy, saying, “You gotta give ’em that ‘hawk tuah’ and spit on that thing.” The remark quickly spread across social media.

Welch understood the potential of viral fame, quitting her job and hiring a team to capitalize on her newfound popularity. She created a line of “Hawk Tuah” merchandise​, collaborated with several brands, created her own podcast, “Talk Tuah,” and appeared with a range of celebrities.

Amid the surge of Hawk Tuah products, the idea of creating her own memecoin emerged as the memecoin supercycle theory gained momentum in the crypto community in October.

After some consideration and lighthearted endorsements, including one from American entrepreneur Mark Cuban on her podcast, the idea gained traction, leading to the creation of the Hawk Tuah (HAWK) memecoin.

However, the launch of HAWK on Dec. 4 was disastrous, plunging 91% of its value in three hours. The memecoin met allegations of sniping and insider trading. 

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YouTube crypto investigator Stephen Findeisen, better known as “Coffeezilla,” dismissed allegations of a rug pull but criticized the team for allowing the dump due to a permitted pre-sale. He described the memecoin launch as “one of the most horrible and miserable launches I’ve ever seen.”

Lawyers told Cointelegraph that Welch and her team could face charges following the launch of her memecoin, but only if authorities decide to intervene. Welch has denied the scam allegations, and no investigation has been announced.

Andrew Tate’s DADDY pump-and-dump

“Masculinity” influencer Andrew Tate launched his Solana-based memecoin, Daddy Tate (DADDY), aiming to replicate the success of Iggy Azalea’s Mother Iggy (MOTHER) token. Tate sought to make DADDY a symbol of male empowerment, with a slogan to “flip it for the patriarchy.” 

DADDY has suffered many pump-and-dumps and remains far below its launch price.

After the token launch, an investigation by onchain analytics tool Bubblemaps revealed significant insider trading activity surrounding Tate’s token.

Insiders may have acquired 30% of the token’s supply early on, with holdings valued at over $45 million at that time.

Although Tate did not sell his tokens, 11 Binance-linked wallets bought 20% off DADDY’s supply on June 9. 

The purchases on Binance happened before Tate’s promotion on X. These insider acquisitions reportedly positioned certain holders for massive profits, raising concerns about the token’s integrity and fairness.

Jack Doherty’s controversial livestream

Streamer Jack Doherty has largely risen to social media fame through his infamy. Known for reckless stunts, alleged manipulation tactics and pushing the boundaries for clout, he has faced criticism for valuing fame over ethics.

On Oct. 5, he was banned from the streaming platform Kick after he crashed his $200,000 McLaren while presumably texting on his phone during a livestream. 

Crashed my McLaren… glad we’re both ok🙏❤️ pic.twitter.com/Rn3u961Rqp

— Jack Doherty (@dohertyjackk) October 5, 2024

On Nov. 23, Doherty sought to work on other social media platforms as his revenue fell. He started trending on X and Reddit after users reported that he executed a rug-pull live on his stream after launching a memecoin.

Doherty allegedly bought his memecoin McLaren (MCLAREN) with several wallets before promoting it heavily on his streams. As he hyped MCLAREN, the price surged.

During a livestream, Doherty reportedly sold off his holdings, causing the token’s price to plummet — a classic “dump.” This left investors with significant losses while he profited. 

Jack Doherty's Meme Coin Misadventure 🤦‍♂️💸

Jack Doherty, a known live streamer, recently pulled a rug on his followers with a meme coin he hyped during his stream. 📢 After amassing investments, he sold off, causing the coin's value to plummet, and then deleted his promotional X… pic.twitter.com/RfNzSFENWD

— 🤖Durak the Robot (@Crypto_AI1212) November 23, 2024

Following the incident, the 21-year-old deleted all promotional tweets about the coin, sparking widespread criticism on social media and accusations of a “rug pull.” For now, no authority or lawsuit has taken action.

Sean Kingston’s crypto kingdom was dethroned

Jamaican-American singer Sean Kingston debuted as a celebrity after his single “Beautiful Girls” appeared on Top 100 charts and became an international hit. 

Kingston launched King (KING) on July 16, which initially hit a market cap of $4 million. Still, it crashed to $400,000 in minutes.

In May, Kingston was arrested for multiple fraud and theft-related charges. Authorities allege that he and his mother, Janice Turner, defrauded businesses, including jewelers and car dealers, stealing over $500,000 in total.

The charges include grand theft and organized schemes to defraud. Kingston’s mother was also arrested during a SWAT raid at their Florida mansion, where luxury goods were seized. This case follows prior legal trouble for Kingston, as he was on probation for trafficking stolen property.​

For now, no lawsuit has been filed regarding the launch and collapse of KING.

Davido flipped his memecoin

Davido, a popular Nigerian Afrobeat star, launched his memecoin Davido (DAVIDO) on the Solana blockchain on May 29.

Eleven hours before the launch, Davido received 7.5 SOL (SOL) as startup capital, about $1,275 at the time. He created DAVIDO on Pump.fun and spent 7 SOL to purchase 203 million DAVIDO tokens, which accounted for 20.3% of the total supply.

Shortly after the token rose in price, he sold all his tokens, flipping 7 SOL for $500,000. After the dump, DAVIDO became worthless.

After the memecoin’s rapid crash, many fans and critics accused Davido of promoting a scam.

The Securities and Exchange Commission of Nigeria issued a warning, distancing itself from the coin and advising the public about the risks of memecoins. Despite the response from the regulator, no lawsuits have emerged.

Davido may not have legal authorities chasing him, but the scandal has damaged his reputation.

Caitlyn Jenner and Jason Derulo memecoin victims?

American singer Jason Derulo and Caitlyn Jenner, an Olympic gold medalist and well-known American television personality, decided to launch their own memecoins, with similar outcomes.

In June 2024, Derulo launched Jason (JASON), which initially saw significant interest after a social media campaign. However, the coin’s value plummeted by over 70% almost immediately, leading to backlash from investors.

Derulo accused Sahil Arora, a crypto influencer and controversial memecoin co-creator, of orchestrating a pump-and-dump scheme for his own profit.

“Despite his claims, we doubt Jason Derulo got fooled by Sahil,” Bubblemaps posted to X on June 24.

Bubblemaps found wallets it claimed were associated with Arora that held half of JASON’s supply, which “dumped almost everything” and made a $180,000 profit after Derulo’s first post sharing the token.

Bubblemaps claimed that a wallet allegedly belonging to Derulo received tokens directly from Arora’s wallet and sold about $20,000 worth. This contradicted Derulo’s statements in at least three X posts, where he asserted he would “never sell” his tokens.

Similarly, Jenner partnered with Arora to launch and promote the Jenner (JENNER) memecoin. Initially launched on Solana and later moved to Ethereum, the token’s value plummeted after significant trading activity.

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Both Jenner and Derulo accused Arora of scamming investors by failing to disclose vital information, such as insider holdings and risks, and of engaging in unfair trading practices, including selling off large portions of tokens after promoting them to the public.

In both cases, the accusations center on token price manipulation, misleading promotions, and potential financial gains made at investors’ expense, resulting in public backlash.

Derulo’s case has damaged his image, though no open cases have been filed. However, Jenner is facing a lawsuit accusing her and her manager, Sophia Hutchins, of “fraudulently soliciting financially unsophisticated investors in the US and abroad to purchase unregistered securities.”

Celebrities may have gained fame through their talents, but their involvement in crypto projects does not validate legitimacy or profitability. Savvy crypto investors often view celebrity endorsements as a red flag.