Vitalik Buterin, co-founder of Ethereum, strongly criticized the recent trend where celebrities create memecoins in the crypto space. In a social media post on June 5, Buterin argued that most of these celebrity-backed memecoins lack practical utility or a specific purpose behind their creation.

He emphasized that financializing something, like turning it into a tradable asset, should only be justified if it serves a purpose that brings real societal value, such as advancing healthcare, supporting open-source software, or promoting art. According to Buterin, any project's primary aim should be to provide a sense of fulfillment or satisfaction to participants, even if the project ultimately fails or the tokens become worthless.

Buterin outlined criteria that he believes celebrity crypto projects should meet to earn respect. Firstly, these assets should contribute to a public good beyond enriching celebrities and early adopters. He cited Ashton Kutcher and Mila Kunis' Stoner Cats NFT collection as an example that is more commendable than other memecoins because it funded an actual show.

He also suggested that celebrity memecoins should incorporate engaging features like Decentralized Autonomous Organization (DAO) activities to encourage community involvement and sustainability over a long period, rather than being short-lived trading opportunities.

Recently, celebrity memecoins have surged in popularity within the crypto industry, with figures like Caitlyn Jenner, Iggy Azalea, and Davido launching tokens via platforms like Pump Fun on Solana. While these ventures have seen varying degrees of success, blockchain data indicates that early traders have primarily benefited financially. For instance, an address linked to Davido reportedly made a profit exceeding $470,000 in just 11 hours.

Meanwhile, Iggy Azalea's Mother Iggy token has gained significant attention after its value surged approximately 500% over the past week, according to CryptoSlate data.