Rapper Iggy Azalie’s MOTHER and Andrew Tate’s DADDY tokens have pulled again sharply prior to now few days. DADDY was buying and selling at SOL 0.1724 on Monday morning, down from final week’s excessive of $0.3665 whereas MOTHER was buying and selling at SOL 0.1398.
Celeb meme cash have slumped
These tokens have retreated as a few of their holders promote them to take their enormous earnings, a standard follow within the crypto and inventory markets.
In addition they slumped due to the final weak efficiency of different altcoins like Ethereum, Solana, and Chainlink. In style meme cash like Pepe, Bonk, and Dogwifhat additionally crashed onerous prior to now few days.
The method was accelerated by the actions by the Federal Reserve, which predicted that there will probably be only one fee reduce this yr. Earlier this yr, most analysts have been anticipating the Fed to ship a minimum of 4 fee cuts.
I predict that there will probably be one fee reduce within the December assembly. This being an election yr, a fee reduce earlier than November would appeal to scrutiny from Donald Trump’s camp who would accuse the financial institution of election interference.
What subsequent for DADDY and MOTHER?
These tokens, as I wrote on Friday, provide no intrinsic worth to buyers and there are excessive probabilities that they’ll finally collapse as we noticed with celeb Non-Fungible Tokens (NFT).
Nevertheless, you shouldn’t rule them out since a rebound continues to be doable for three primary causes. First, these aren’t the one tokens that supply no worth which have jumped through the years. Cardano, a zombie token with no main ecosystem, continues to be valued at over $18 billion.
Equally, different meme cash like Shiba Inu, Dogecoin, and Pepe have a multibillion-dollar valuation regardless of having any utility. Subsequently, there’s a probability that these celeb tokens will do the identical. Moreover, they’ve already demonstrated that they might soar.
Second, DADDY and MOTHER are based mostly on extremely in style celebrities. Rapper Iggy Azalea’s YouTube channel has over 8 million followers and her music movies have attracted over 4.4 billion viewers. The identical is true with different platforms like Spotify and Apple Music.
Andrew Tate’s YouTube movies appeal to hundreds of thousands of views whereas his X web page has nearly 10 million followers. It isn’t ultimate to go towards individuals with such followers due to their loyal fanbase.
Lastly, these tokens will probably bounce again when the crypto trade recovers. Knowledge by DEX Tools exhibits that there have been over $5.34 million DADDY token patrons prior to now 24 hours towards $5.48 million sellers. MOTHER had over $4.4 million patrons towards $4.1 million sellers. These numbers imply that not everyone seems to be shorting the tokens.
Subsequently, whereas DADDY and MOTHER don’t provide any worth, shorting them can result in a significant brief squeeze.