In the fast-paced world of meme tokens, celebrity endorsements can spark massive hype, but they often lead to quick flameouts. A recent clip shared by crypto journalist Laura Shin on X highlights this issue, featuring Bubblemaps CEO Nicolas Vaiman (known as @Nickybubbly) explaining why celeb memecoins tend to die right after launch. Even big names like Kanye West couldn't keep his $YZY token alive, as Vaiman points out in the Unchained podcast episode.

The Attention Economy in Memecoins

Memecoins, those fun, often viral cryptocurrencies inspired by internet memes or cultural icons, thrive on attention. But when a celebrity launches one, the excitement peaks at the very beginning. Vaiman breaks it down simply: "Because the attention span is so short now, because you just jump to the shiny thing." As soon as the token hits the market, there's an initial burst of interest tied to the famous figure—be it a musician, politician, or influencer. However, since these tokens are "purely based on attention," there's no real utility or reason to hold them long-term. The peak happens at launch, and then? Loyalty vanishes, and the price tanks.

Take Kanye West's $YZY as a prime example. Despite Ye being one of the most popular artists globally, the token couldn't sustain interest. Vaiman notes, "Even him couldn't create loyalty towards his own memecoin." This isn't unique to Kanye; it's a pattern across celeb tokens. Traders chase the hype, pump the price in minutes, and then dump, leaving retail investors as "exit liquidity"—basically, the ones left holding the bag when the value plummets.

Insider Tactics and the Broken Model

Diving deeper, the podcast episode titled "How Crypto Insiders Are Sidestepping the Law to Dump on Retail" on Unchained reveals how insiders exacerbate these failures. Snipers—traders using bots and privileged info—dominate launches, sometimes pooling funds to buy big early. Middlemen like Sahil Arora lure celebrities in, paying them to promote contract addresses while dumping tokens on fans. Techniques like one-sided liquidity pools (LPs) hide massive sells, making it look like the token is stable when it's not.

Vaiman emphasizes that the model is inherently flawed: "There is no reason to stick around for any of these tokens, at least any celebrity token." Regulators move too slowly to intervene, with scammers operating from safe havens like Dubai. This leaves the community vulnerable, turning meme token launches into high-stakes games where insiders win and retail loses.

Building Better Protections for Meme Token Enthusiasts

So, what's the fix? Vaiman argues that "no one is coming to save us," pushing for community-driven tools. His company, Bubblemaps, is at the forefront here. Bubblemaps visualizes blockchain data in bubble charts, making it easier to spot wallet clusters, insider holdings, and potential scams. They're even building "Intel Decks," a Wikipedia-style database for on-chain incidents to help users do their own research (DYOR).

For blockchain practitioners dipping into meme tokens, the lesson is clear: Always DYOR. Check tools like Bubblemaps to analyze token distribution before jumping in. Avoid chasing launches without understanding the mechanics—remember, if you're not in within minutes, you might just be funding someone else's exit.

This clip and the full Unchained episode serve as a wake-up call for the meme token space. While the hype around celeb coins can be tempting, understanding the underlying dynamics can help you navigate safer. Stay informed, and let's build a more transparent crypto ecosystem together.