Celebrity Coin was sued after it went to zero. Is there any precedent for compensation?

On November 13, British citizen Naeem Azad and Romanian citizen Mihai Caluseru filed a lawsuit in the U.S. federal court in California, accusing Caitlyn Jenner and her agent Sophia Hutchins of fraudulently soliciting financially unsophisticated investors in the United States and abroad to purchase unregistered securities.

Caitlyn Jenner is a former Olympic champion, but she is better 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 immediately caused huge price fluctuations due to the authenticity controversy of whether it was launched by her. After a series of dramatic stories, according to dexscreener data, the market value peaked at $40 million.

But as the craze for celebrity coins faded, as the complaint alleges, “Jenner appears to have completely abandoned the project and is no longer actively promoting it, leaving holders with severe losses that are unlikely to be recovered.”

Since rebounding to a market value of $10 million in early June, the price and commerce volume of $JENNER have been falling, with a long-term market value of only more than $200,000. However, after the news of the lawsuit came out, $JENNER actually saw a 30% increase due to this wave of black traffic, and its current market value is about $800,000.

The two investors claimed to have lost more than $56,000 by investing in JENNER tokens. In the lawsuit, they mentioned that if it were not for Caitlyn Jenners public propaganda and false and misleading statements, they would not have made such an investment decision. They also said that Caitlyn Jenner deliberately failed to register with the SEC, resulting in a lack of sufficient transparent information to assess investment risks.

But is it just Caitlyn Jenner who is “playing it out”? No. The indictment also mentioned that Caitlyn Jenner once tweeted that she “would not launch a token again”, but in the end, she still launched another $JENNER token on Ethereum.

In addition, the $JENNER token on Ethereum has a 3% transaction fee for each transaction, and Caitlyn Jenner has never disclosed the existence of transaction fees.

Currently, the $JENNER token on Ethereum has a market cap of only about $100,000, while at its peak, the market cap was about $8 million.

Of course, we can’t say that all “celebrity coins” are “short-lived”. Another star project in the “celebrity coin” craze six months ago, rapper Iggy Azalea’s $MOTHER, still has a market value of $80 million. Although it is far from the peak market value of $300 million, it has at least formed a stable meme in operation.

Throughout the history of Crypto, Celebrity Coins are just examples of celebrities using cryptocurrency players as ATMs, which accounts for the vast majority. Kim Kardashian, another member of the Kardashian family, was accused by the SEC in 2022 of promoting $EMAX without disclosing the publicity compensation. In the end, Kim Kardashian paid a fine of $1.26 million and agreed not to promote any cryptocurrency for 3 years. NBA star Shaq ONeal was also sued for promoting the NFT project Astrals on Solana. He said in Discord after FTX collapsed that he would not leave, but since then, he has not said a word in Discord.

In the cruel crypto market, the only one we can trust is ourselves.

This article is sourced from the internet: Celebrity Coin was sued after it went to zero. Is there any precedent for compensation?

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