Pop star Jason Derulo, known for his musical numbers and energetic stage presence, is now under scrutiny due to his involvement in a meme currency controversy. Despite his public promise that he would “never sell” his newly launched meme coin, JASON, the token fell more than 72% after launch.
Reports indicate that Derulo sold large amounts of the token, which contradicts his initial assertions.
This controversy emerged after Derulo’s video where he assured his followers that he would hold his JASON tokens, further complicating the debate over the ethical implications of celebrity endorsements in the volatile cryptocurrency market.
Accusations and reactions
Jason Derulo is facing backlash after promoting the JASON meme to his 3.5 million followers on X (formerly Twitter). Shortly after its launch, the value of the coin dropped sharply, leading to accusations of a pump-and-dump scheme.
Derulo later claimed that he was scammed by alleged scammer Sahil Arora, a notorious figure in the cryptocurrency community. Derulo vowed to “do everything in my power to send this [coin] to the moon.”
Sahil Arora has been involved in previous scams, including Iggy Azalea’s MOTHER coin and Caitlyn Jenner’s JENNER coin. American rapper Rich the Kid also accused Arora of running a similar scam using his token RICH, claiming that Arora pocketed the funds and blocked him.
Crypto community doubts
Despite Derulo’s claims that he was scammed, influential cryptocurrency figures such as millionaire SlumDOGE and on-chain investigator ZachXBT have expressed their doubts. SlumDOGE millionaire accused Derulo of profiting from the rug pull, saying: “My brother made $1 million off his rug and put $20,000 back in the chart. You’re not stupid or new to crypto, Jason.
Analytics firm Bubblemaps reported significant selling activity linked to wallets connected to Arora and Derulo. According to Bubblemaps, wallets connected to Arora had half of their JASON supply and sold almost everything, netting $180,000 after the Derulo promotion.
Additionally, a wallet allegedly owned by Derulo sold approximately $20,000 worth of the token, contradicting his public claims of no sales.
Wider implications and future prospects
This incident sparked a debate about the ethics and risks of celebrity endorsement in cryptocurrencies, resulting in financial losses for investors and potential damage to the reputation of the celebrities involved. Derulo initially blamed Sahil Arora for the scheme, committed to restoring the value of the currency.
However, Arora rejected the accusations, claiming that the plan was orchestrated and highlighting the increase in the price of the token after the initial decline.
Arora has been involved in similar schemes with other celebrities, resulting in his suspension from X (formerly Twitter) and public condemnation.
Despite this, Arora hinted at future collaborations with celebrities like rapper Tyga and footballer Ronaldinho Gaucho to launch similar meme currencies, though neither has publicly endorsed any cryptocurrencies yet.
In short, while Jason Derulo’s involvement in the meme coin controversy has raised questions about the integrity of celebrity endorsements in the crypto space, the broader implications highlight the need for stricter regulations and greater transparency in the industry.
🔍 Exploring Jason Derulo’s role in the $JASON Token Saga: Key Highlights
Recent Controversy: Jason Derulo (@jasonderulo) recently sold his holdings in $JASON amid controversy, raising questions about transparency and sharing.
Promotion Oversight: Derulo admitted to promoting… pic.twitter.com/y0sugrDOGi
— CapitalBay (@CapitalBay_news) June 25, 2024