Hulk Hogan Initiates Rug Pull As Investors Lose Millions On His Meme Coin

Once again, celebrity-backed meme coins are causing a stir in the crypto world, as stars like Iggy Azalea and Hulk Hogan jump on the bandwagon, promising sky-high returns. Unsurprisingly however, the latest craze is not all glitz and glam, as the Hulk Hogan Solana-based coin, aptly named HULK, recently took a $17 million tumble, leaving investors scratching their heads.

Reasons Behind The Crash

WWE icon Hulk Hogan had launched a meme coin on Solana in order to capitalize on the current craze surrounding celebrity-endorsed meme coins. Nevertheless, HULK experienced a staggering $17 million decline on June 6th when its entire market cap suddenly plummeted to $11,000.

Ironically, the crash was triggered by Hulk Hogan himself, who unexpectedly deleted his social media posts related to the Solana meme coin, causing significant losses for HULK holders. Some of these deleted posts even referenced Iggy Azalea and her promotion for her meme coin, MOTHER.

In any case, suspicion quickly arose regarding Hulk Hogan and his involvement in the rug pull. Observant crypto users noted discrepancies in what Hogan was posting on social media, including recycled video content promoting the meme coin. However, the former WWE world champion and his team denied authorizing the deleted posts, leaving investors uncertain about the situation.

Caution Against Celebrity Meme Coins

Ethereum (ETH) founder Vitalik Buterin criticized celebrity-backed meme coins, stating that they offer little value beyond quick financial gain. He emphasized the importance of projects contributing to the public good and dismissed celebrity-endorsed projects lacking substance.

Moreover, regulatory authorities have penalized several influencers, including Kim Kardashian and Floyd Mayweather, for fraudulent crypto promotions. Sahil Arora, associated with many of these fraudulent tokens, has been linked to previous projects like the now-defunct SOULJA BOY token. On the other hand, Solana founder Raj Gokal expressed a laissez-faire attitude towards the proliferation of meme coins, suggesting that people should enjoy themselves.

At any rate, the influx of celebrities into the crypto space, driven by self-serving financial motives and lacking genuine understanding of the technology, poses several risks which could invite increased regulatory scrutiny going forward.