A cryptocurrency based on a viral TikTok meme recently experienced a meteoric rise. This Solana-based meme coin, Chill Guy, reportedly went from a modest $10 million market cap to $500 million in just a few days. At the time of writing, the token traded for $0.3682 on CoinGecko, with a market capitalization of $368 million.
Just a Chill Guy
Chill Guy, inspired by a TikTok meme of a laid-back anthropomorphic character, has taken the crypto world by storm. The meme resonated with Gen Z on TikTok, celebrating resilience in the face of life’s challenges.
As the meme gained traction, the token tied to its likeness skyrocketed in value, creating a whirlwind of speculation, Decrypt reported. One fortunate trader, with just over $1,000 invested, reportedly cashed out over $400,000 while still holding tokens worth more than $600,000.
Their unrealized gains reportedly crossed the million-dollar mark. However, these paper profits remain at risk in the notoriously unpredictable meme coin market. The surging popularity of Chill Guy highlighted that TikTok, traditionally not a crypto-centric platform, could be drawing a new audience into the space.
MoonPay, a major Solana on-ramp service, reportedly registered its single largest day of transactions during Chill Guy’s peak, further fueling speculation that social media trends are driving fresh interest in cryptocurrencies.
Legal Trouble
Despite its financial success, the cryptocurrency is facing emerging legal challenges. Phillip Banks, the creator of the Chill Guy character, has expressed displeasure with the token.
Banks, who copyrighted the character, plans to issue takedown notices for any unauthorized profit-driven use of his creation, including merchandise and crypto tokens, Coindesk reported. This development has reportedly caused Chill Guy’s value to drop nearly 50% from its peak.
Interestingly, a recent crypto rally caused excitement around meme coins. Such tokens tied to the top cryptocurrency, including PUPS, DOG•GO•TO•THE•MOON, and BILLION•DOLLAR•CAT, posted significant gains.
According to CoinGecko data, some of these tokens recently registered significant gains on the daily chart, for instance, CYPHER•GENESIS (CYPHER), which jumped 50%. The growing interest in Bitcoin-based meme coins came amid a shift in the underlying infrastructure.
Memecoins have become a speculative asset class when there is low volatility in more established crypto sectors. With Bitcoin recently hitting new highs, crypto users are shifting to meme coins to gain exposure to Bitcoin without directly owning the asset.
This article was written by Jared Kirui at www.financemagnates.com.
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