Former professional wrestler Hulk Hogan was the latest victim of fake crypto memecoin promotion. He warned his followers to stay away from any related posts.Former professional wrestler Hulk Hogan recently found himself at the center of a controversy surrounding the promotion of a Solana-based meme coin, $HULK.
This is the time when B-list celebrities endorse or launch their own crypto tokens which often lead to market volatility and skepticism. However, the 70-year-old urged his followers to ignore any posts promoting the memecoin since they are not from him.
Hogan Distances Himself From $HULK Promotional Posts
Hogan, whose real name is Terry Gene Bollea, disavowed a series of now-deleted social media posts that promoted the HULK token.
In an Instagram post, Hogan urged his followers to ditch any posts made that day, stating, "Please do not take notice of any posts posted today. They are not from me and will be promptly removed."
Despite the removal of the posts from his X (formerly Twitter) account, cached versions reveal that his account did promote the token, urging users to invest, Mashable reports.
What Pushed $HULK Token to Surge in Value
The promotion of HULKAMANIA led to a rapid surge in its value, with the token reaching a peak market capitalization of $18.8 million shortly after its launch. However, the market cap plunged to $2 million within just 20 minutes.
This swift rise and fall raised questions about the authenticity of the promotion and whether Hogan's account was compromised.
Crypto analytics firm Bubblemaps reported that five wallets acquired 15% of the HULK supply during its launch on the meme token platform pump.fun, before Hogan's promotional posts. These wallets managed to sell $200,000 worth of the token, realizing substantial profits as the market reacted.
The Pattern of Celebrity-Endorsed Tokens
Hogan's involvement in HULKAMANIA follows a trend of celebrities launching or endorsing their own crypto tokens.
Reality TV star Caitlyn Jenner, along with rappers Iggy Azalea and Rich the Kid, have also introduced Solana-based tokens recently. While many of these tokens have seen sharp declines in value, Azalea's MOTHER token has maintained its value due to her active involvement and efforts to clean up the token's image.
Concerns Over Celebrity-Endorsed Cryptocurrencies
The rise of celebrity-endorsed meme coins has pushed the public to be more careful within the crypto community.
Ethereum creator Vitalik Buterin recently criticized that hyping celebrity tokens won't do anything good. Instead of achieving a long-term value for the coins, investors only feel the fleeting hype.
The ease of launching such tokens on platforms like pump.fun has made it easier for these events to occur, leading to fears of pump-and-dump schemes and rug pulls.
This incident with HULKAMANIA serves as a clear reminder of the potential risks associated with celebrity-endorsed cryptocurrencies. While the allure of quick profits can be tempting, the volatile nature of these endorsements often leads to unexpected financial losses for investors.
As always, study first the investment vehicle you're going into, and don't put all your money in one basket.
In other news, meme coin promoter Sahil Arora was banned by X, Cointelegraph reports. The alleged serial scammer's "@Habibi_Comm" account was now suspended.
Arora is known for faking partnerships with celebrities in launching meme coins. He also claimed to collaborate with BingX, but the latter said they were not working with him.
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