Nick Cannon Faces Backlash After Memecoin Value Plummets

LOS ANGELES, CA — Nick Cannon, the host of “The Masked Singer,” announced plans to launch a second cryptocurrency token after experiencing backlash from investors of a failed memecoin. Cannon distanced himself from the coin called WILDNOUT, which he promoted leading up to its launch on March 5, 2023, drawing criticism over its rapid decline in value.

The WILDNOUT token initially reached a market cap of $10 million within nine hours of its debut but plummeted to just $67,000 within a few weeks, costing around 16,500 investors millions. Many of these investors lost confidence in Cannon, taking to social media to express their frustrations. One user remarked, “Your name is mud. You didn’t make enough efforts to salvage your coin. People trusted you. That trust is broken.”

In a live forum on March 26, Cannon explained his commitment to avoiding past mistakes, asserting that he was not the creator of the WILDNOUT coin. “I never want to run game on anybody, and I never want to scam anybody,” he stated, aiming for transparency in his forthcoming projects. “We’re just trying to comply by the rules because there are rules to this, and I am one of those guys who plays by the rules.”

Cannon noted he intends to apply lessons learned from the WILDNOUT experience to the new enterprise token—anticipated to provide real utility for its users. He stated, “Every step we take from here on out, we’ll be thinking about the people.” An enterprise token generally represents a unit of value linked to a business, and Cannon emphasized wanting to create a legitimate and reliable product this time.

Despite the plummet of WILDNOUT, Cannon maintained he had not sold his stake in the coin and proclaimed he would ensure future ventures follow appropriate protocols. ” [I] just wanted to make sure, moving forward, whatever we do is going to be super official and done the right way,” he said.

Cannon’s assurances follow reports of public dissatisfaction and anxiety from those who invested. A well-known cryptocurrency trader, David Kennedy, warned about the risks involved with memecoins, saying, “These things are happening so frequently… So there’s no real recourse for these people who lost money on WILDNOUT, other than getting upset or suing.”

The SEC has determined that memecoins do not count as securities, leaving investors with limited legal options. As Cannon navigates these challenges, many in the crypto community remain wary of the potential risks associated with celebrity-endorsed cryptocurrency ventures.