Vitalik Buterin Reveals How to Build and Identify Valuable Celebrity Tokens After DAVIDO and JENNER Cryptos Flop
The co-founder of Ethereum, Vitalik Buterin, has weighed in on the trend of celebrity cryptocurrency token launches, many of which have led to significant losses for investors. In the wake of the DAVIDO and JENNER token fiascos, where the celebrities dumped their holdings on the market, Buterin has outlined the key factors that could make a celebrity token worthy of trust and respect.
What you'll learn 👉
Buterin’s Reaction to “This Cycle’s Celebrity Experimentation”
Buterin’s comments came in response to a post by Chris Burniske on the social media platform X, regarding the $MOTHER token launched by another celebrity. Burniske stated, “If $MOTHER breaks into sustainable value creation, it’ll also be the mother of this cycle’s celebrity experimentation.”
In his reply, Buterin expressed dissatisfaction with the current trend, stating, “I’m feeling quite unhappy about ‘this cycle’s celebrity experimentation’ so far.”
Criteria for Respectable Celebrity Crypto Projects
To provide guidance on how celebrity crypto projects could earn his respect, Buterin outlined three key requirements:
Public-Good Goal
Buterin emphasizes the need for a public-good goal beyond enriching the celebrity and early adopters. He suggests that this could be an art project, support for the celebrity’s favorite charity, or a combination of both.
Engaging Mechanics
Buterin advocates for incorporating engaging mechanics that go beyond mere token trading. While he dislikes token voting DAOs (Decentralized Autonomous Organizations), he acknowledges that they provide something for people to organize around and participate in.
Long-Term Sustainability
Buterin stresses the importance of creating projects that last 10+ years, rather than bubbling around for a few months and then being forgotten. He believes that even if the tokens eventually become worthless, participants should feel happy to have been involved, similar to how regular businesses and charities operate.
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In his comments, Buterin draws a distinction between “financialization as a means toward an end” and “financialization as the final product.” He respects financialization if the end goal is worthy, such as supporting healthcare, open-source software, or art. However, he criticizes financialization as the sole purpose, suggesting that the movie “Stoner Cats” by Ashton Kutcher and Mila Kunis was more honorable because it involved funding an actual show.
Vitalik Buterin’s comments provide a framework for celebrity crypto projects to earn credibility and respect within the industry. By focusing on public-good goals, engaging mechanics, and long-term sustainability, these projects can potentially avoid the pitfalls of the recent DAVIDO and JENNER token mishaps and create value for participants beyond short-term speculation.
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