On November 13, British citizen Naeem Azad and Romanian citizen Mihai Caluseru filed a lawsuit in the federal court of California, accusing Caitlyn Jenner and her agent Sophia Hutchins of fraudulently soliciting financially inexperienced investors in the U.S. and abroad to purchase unregistered securities.
Caitlyn Jenner is a former Olympic champion, but she is more widely known as the stepfather of Kim Kardashian and other members of the Kardashian family, as well as a transgender woman. Her token JENNER was launched on Solana through pump.fun on May 27, and it experienced significant price volatility right from the start due to controversies over its authenticity. After a series of dramatic events, data from dexscreener indicated that its market capitalization peaked at $40 million.
However, as the celebrity token craze gradually faded, the lawsuit claims that "Jenner seems to have completely abandoned the project, no longer actively promoting it, causing severe losses for holders that are unlikely to be recovered."
Since rebounding to a market cap of $10 million in early June, the price and trading volume of $JENNER have steadily declined, with a long-term market cap of only a little over $200,000. Yet, following the news of the lawsuit, $JENNER actually saw a 30% increase due to this wave of "black traffic," currently with a market cap of about $800,000.
These two investors claim to have lost over $56,000 due to their investment in the JENNER token. In the lawsuit, they mentioned that they would not have made such an investment decision if it weren't for Caitlyn Jenner's public promotion and "false and misleading statements." They also stated that Caitlyn Jenner intentionally failed to register with the SEC, resulting in a lack of sufficient transparent information to assess investment risks.
But is it just Caitlyn Jenner "shouting orders and giving up"? No. The lawsuit also mentions that Caitlyn Jenner had tweeted that she "would not launch another token," yet she ultimately launched another $JENNER token on Ethereum.
Moreover, the existence of the $JENNER token on Ethereum incurs a 3% transaction fee, which Caitlyn Jenner has never disclosed.
Currently, the $JENNER token on Ethereum has a market cap of about $100,000, while at its peak, it was around $8 million.
Of course, it cannot be said that all "celebrity tokens" are "short-lived." Another star project from the celebrity token craze six months ago, rapper Iggy Azalea's $MOTHER, still has a market cap of $80 million. Although this is far from its peak market cap of $300 million, it has at least formed a stable meme in operation.
Looking at the history of Crypto, the vast majority of "celebrity tokens" are examples of celebrities treating crypto players as cash cows. Another member of the Kardashian family, Kim Kardashian, was charged by the SEC in 2022 for promoting $EMAX without disclosing her promotional compensation, ultimately paying a $1.26 million fine and agreeing not to promote any cryptocurrency for three years. NBA star "Shaquille O'Neal" was also sued for promoting the NFT project "Astrals" on Solana; he had stated in Discord after the collapse of FTX that "he would not leave," but since then, he has not said another word in Discord.
In the harsh crypto market, the only thing we can trust is ourselves.
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