DaBaby’s memecoin, $BABY, launched with massive hype, reaching $27 million in trading volume within hours. However, the momentum collapsed quickly. Within five minutes, the token’s price plunged 32.74%, leaving many investors at a loss.
Early Buyers Cashed Out Before DaBaby’s Tweet
Timing played a crucial role in the crash. By the time DaBaby promoted $BABY on social media, early buyers had already taken profits. Retail investors who bought in after his tweet found themselves holding a rapidly depreciating asset.
This pattern is common in celebrity-backed memecoins. While hype drives initial demand, early entrants often exit before the broader audience reacts. $BABY joins a growing list of tokens that skyrocketed on celebrity influence before quickly losing value.
The Risks of Celebrity-Endorsed Tokens
The crypto market has seen a surge in celebrity-driven tokens, often fueled by social media hype. However, these coins remain highly volatile. Investors who chase trends risk significant losses when early adopters dump their holdings.
DaBaby has yet to comment on $BABY’s crash, but the event serves as another cautionary tale. Hype alone does not guarantee profits in crypto.
