Hulk Hogan’s meme coin crashes 85%, raising concerns about celebrity-backed cryptocurrencies

Celebrity meme coins are back in the headlines, basking in the somewhat recovered glow of the market. However, not all that glitters is gold—or in this case, cryptocurrency.

Hulk Hogan’s entry into the crypto world with his Solana-based meme coin, HULK, has just taken a brutal beating, experiencing an 85% drop in value.

What was this Hulk Hogan disaster?

On June 6th, HULK, the celebrity-backed coin, suffered a massive blow, experiencing a shocking loss of $17 million, as reported by Dexscreener.

Within a short span of hours, its market cap plummeted from a high of $17 million to a mere $9.6 thousand. Currently, the HULK coin is trading at $0.00002251.

This sudden crash was triggered by insider selling, with one individual making an astonishing 812x gain, pocketing nearly a million dollars in a short period.

This insider purchased 190 million HULK tokens for just $1,200 worth of Solana (SOL) tokens, only to unload them shortly after, leading to the catastrophic collapse in the HULK price.

Was Hulk Hogan behind this?

Former professional wrestler Hulk Hogan’s involvement in promoting the celebrity meme coin added to the complexity of the situation.

Prior to the crash, Hogan had actively promoted the HULK meme coin through now-deleted posts on social media platforms.

However, Hogan quickly distanced himself from the cryptocurrency, denying any association with its promotion to disregard any posts related to the coin, hinting that his social media accounts may have been compromised.

But the doubts continue

Even before Hogan’s clarification, crypto enthusiasts had noticed inconsistencies in his social media activity, raising suspicions of potential manipulation.

Some pointed out recycled footage from December 2023, casting doubts on the authenticity of his support for the HULK coin.

While the extent of Hogan’s involvement in the coin’s downfall remains unclear, the incident has shed light on the risks associated with celebrity-backed cryptocurrencies.

The sudden and dramatic crash of HULK highlights the potential for manipulation and the inherent risks in investing in coins promoted by celebrities.

Are celebrity-backed cryptos worth it?

This incident underscores the importance of conducting thorough research before investing in any cryptocurrency, especially those endorsed by celebrities.

The HULK coin’s collapse serves as a cautionary tale, reminding investors to be wary of the hype and to scrutinize the fundamentals and the transparency of the projects they are considering.

As the crypto market continues to evolve, the need for due diligence and awareness of potential risks remains paramount.