Rapper Iggy Azalie’s MOTHER and Andrew Tate’s DADDY tokens have pulled back sharply in the past few days. DADDY was trading at SOL 0.1724 on Monday morning, down from last week’s high of $0.3665 while MOTHER was trading at SOL 0.1398.
Celeb meme coins have slumped
These tokens have retreated as some of their holders sell them to take their huge profits, a common practice in the crypto and stock markets.
They also slumped because of the general weak performance of other altcoins like Ethereum, Solana, and Chainlink. Popular meme coins like Pepe, Bonk, and Dogwifhat also crashed hard in the past few days.
The process was accelerated by the actions by the Federal Reserve, which predicted that there will be just one rate cut this year. Earlier this year, most analysts were expecting the Fed to deliver at least four rate cuts.
I predict that there will be one rate cut in the December meeting. This being an election year, a rate cut before November would attract scrutiny from Donald Trump’s camp who would accuse the bank of election interference.
What next for DADDY and MOTHER?
These tokens, as I wrote on Friday, offer no intrinsic value to investors and there are high chances that they will ultimately collapse as we saw with celeb Non-Fungible Tokens (NFT).
However, you should not rule them out since a rebound is still possible for three main reasons. First, these are not the only tokens that offer no value that have jumped over the years. Cardano, a zombie token with no major ecosystem, is still valued at over $18 billion.
Similarly, other meme coins like Shiba Inu, Dogecoin, and Pepe have a multibillion-dollar valuation despite having any utility. Therefore, there is a likelihood that these celeb tokens will do the same. Besides, they have already demonstrated that they could soar.
Second, DADDY and MOTHER are based on highly popular celebrities. Rapper Iggy Azalea’s YouTube channel has over 8 million followers and her music videos have attracted over 4.4 billion viewers. The same is true with other platforms like Spotify and Apple Music.
Andrew Tate’s YouTube videos attract millions of views while his X page has almost 10 million followers. It is not ideal to go against people with such followers because of their loyal fanbase.
Finally, these tokens will likely bounce back when the crypto industry recovers. Data by DEX Tools shows that there were over $5.34 million DADDY token buyers in the past 24 hours against $5.48 million sellers. MOTHER had over $4.4 million buyers against $4.1 million sellers. These numbers mean that not everyone is shorting the tokens.
Therefore, while DADDY and MOTHER don’t offer any value, shorting them can lead to a major short squeeze.
