Jason Derulo Faces Backlash Over Meme Coin Promotion Amid Rug Pull Allegations

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Hassan Shittu

Journalist

Hassan Shittu

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Hassan, a Cryptonews.com journalist with 6+ years of experience in Web3 journalism, brings deep knowledge across Crypto, Web3 Gaming, NFTs, and Play-to-Earn sectors. His work has appeared in...

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June 24, 2024 15:16 EDT

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Pop icon Jason Derulo is embroiled in controversy after promoting a meme coin, JASON, that plummeted in value shortly after its release. Known for his musical performances, Derulo’s involvement in the volatile meme coin market has initiated a broader debate about celebrity endorsements in cryptocurrency.This incident has sparked more discussion than there has been before about the potential risks and ethical concerns associated with celebrities promoting financial products, leading to both monetary losses for investors and reputational damage for the celebrities involved.

Sahil Arora Gets The Blame, But Derulo Is Caught In Crossfire

Recently, Derulo took to X to announce the launch of the meme coin JASON to his 3.5 million followers. Regrettably, the coin’s value dipped by more than 72% minutes after its release, causing widespread dismay among investors and fans.

Damn Sahil got me 🤦🏾‍♂️! That’s ok, that’s motivation to take this all the way! I just bought 20k worth. In this for my fans for the long hall, going to do everything in my power to send this shit to the moon. Updating dex screener shortly. pic.twitter.com/eCJtZlo5yt

— Jason Derulo (@jasonderulo) June 24, 2024

In response to the fallout, Derulo pointed fingers at Sahil Arora, a figure previously linked to cryptocurrency scandals. Derulo, attempting to rectify the situation, tweeted:

“Damn Sahil got me! That’s ok, that’s motivation to take this all the way! I just bought $20,000 worth. In this for my fans for the long haul, going to do everything in my power to send this sh*t to the moon”.

Following that, Derulo addressed the issue in an apology video, expressing his commitment to making the coin’s recovery his “life’s goal.“

❤️‍🔥 pic.twitter.com/UFPbaFSUeH

— Jason Derulo (@jasonderulo) June 24, 2024

Despite his proactive stance, skepticism surrounds Jason Derulo’s involvement with the JASON meme coin. Influential crypto figures, such as SlumDOGE Millionaire and on-chain detective ZachXBT, have cast doubt on Derulo’s claims.

SlumDOGE Millionaire criticized Derulo, stating,

“Bro made $1 million off his rug and put $20,000 back in the chart lol. You’re not stupid or new to crypto, Jason; you know exactly what was happening. Don’t play dumb now.”

The liquidity of the JASON meme coin is alarmingly low, at approximately $211,000, with around 3,190 holders. This situation mirrors other high-profile crypto scams where initial excitement leads to significant financial losses for ordinary investors.

Projects will throw them high 5 fig – low 6 fig for <10 min of work

— ZachXBT (@zachxbt) June 24, 2024

The crypto community’s reaction has been critical. ZachXBT, known for exposing crypto scams, responded to Derulo’s apology video, saying,

“You are not sorry at all. You have promoted so many crypto scams over the years I have lost track.”

ZachXBT further added, “Projects will throw them high 5 fig – low 6 fig for <10 min of work,” in response to a user questioning why artists, who presumably earn from their music, engage in crypto projects. The user expressed hope for legal consequences for such actions.

Ongoing Celebrity Meme Coin Promotions

This incident involving Derulo is not the first of its kind. The accused developer, Sahil, has launched several other celebrity-associated meme coins.

Notably, Sahil Arora, the alleged fraudster behind recent meme coin scams involving celebrities Caitlyn Jenner and Rich The Kid, has reportedly been banned from X (formerly Twitter). Arora’s handle, “@Habibi_Comm,” was suspended following news of his involvement in pump-and-dump and rug-pull schemes through celebrity crypto tokens.

Both Jenner and Rich The Kid have publicly condemned Arora, with Jenner announcing plans to pursue legal action against him both criminally and civilly.