Pop star Jason Derulo, known for his musical hits and vibrant stage presence, is now under scrutiny for his involvement in a meme coin controversy. Despite publicly promising that he “WILL NEVER SELL” his newly launched meme coin, JASON, the token plummeted by over 72% after launch.

Reports indicate Derulo sold significant amounts of the token, contradicting his initial assurances.

This controversy emerged following Derulo’s video where he assured followers he would hold onto his JASON tokens, further complicating the debate on the ethical implications of celebrity endorsements in the volatile cryptocurrency market.

Accusations and Reactions

Jason Derulo faces backlash after promoting the meme coin JASON to his 3.5 million followers on X (formerly Twitter). Shortly after its launch, the coin’s value sharply declined, leading to accusations of a pump-and-dump scheme.

Jason Derulo Faces Backlash Over Meme Coin Collapse

Jason Derulo faces backlash after promoting a meme coin that lost 72% in value sparking debates on celebrity crypto endorsements.#Blockchain #CryptoNewshttps://t.co/10AvTjMShF

— Global Crypto News (@GlobalCNNews) June 24, 2024

Derulo later claimed he was deceived by alleged scammer Sahil Arora, a notorious figure in the crypto community. Derulo vowed to “do everything in my power to send this [coin] to the moon.”

Sahil Arora has been implicated in previous scams, including Iggy Azalea’s MOTHER token and Caitlyn Jenner’s JENNER coin. American rapper Rich The Kid also accused Arora of running a similar scam with his token, RICH, claiming Arora took the funds and blocked him.

Crypto Community Skepticism

Despite Derulo’s claims of being scammed, influential crypto figures like SlumDOGE millionaire and on-chain detective ZachXBT expressed scepticism. SlumDOGE millionaire accused Derulo of profiting from the rug pull, saying, “Bro made $1 million off his rug and put $20,000 back in the chart. You’re not stupid or new to crypto, Jason.”

Bubblemaps, an analytics firm, reported significant selling activity linked to wallets associated with Arora and Derulo. According to Bubblemaps, wallets connected to Arora held half of JASON’s supply and sold nearly everything, netting $180,000 after Derulo’s promotion.

Additionally, a wallet allegedly belonging to Derulo sold around $20,000 worth of the token, contradicting his public claims of not selling.

Broader Implications and Future Outlook

This incident has sparked a debate on the ethics and risks of celebrity endorsements in cryptocurrency, leading to financial losses for investors and potential reputational damage for the celebrities involved. Derulo initially blamed Sahil Arora for the scheme, committing to restoring the coin’s value.

However, Arora dismissed the allegations, claiming the plan was orchestrated and highlighting the token’s price increase after the initial dump.

Arora has been involved in similar schemes with other celebrities, leading to his suspension from X (formerly Twitter) and public condemnations.

Despite this, Arora hinted at future collaborations with celebrities like rapper Tyga and footballer Ronaldinho Gaúcho for launching similar meme coins, though neither has publicly endorsed any crypto tokens yet.

In summary, while Jason Derulo’s involvement in the meme coin controversy has raised questions about the integrity of celebrity endorsements in crypto, 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 Points

Recent Controversy: Jason Derulo (@jasonderulo) recently sold his $JASON holdings amid controversy, raising questions about transparency and involvement.

Promotion Oversight: Derulo admitted to promoting… pic.twitter.com/y0sugrDOGi

— CapitalBay (@CapitalBay_news) June 25, 2024