The ChillGuy meme coin experienced a significant drop of over 25% in value within just 30 minutes after the project was denied any rights to the original Chill Guy meme. The price plummeted from $0.4793 to $0.2677, causing the market capitalization to decrease to $299 million. This sudden decline was accompanied by a 172% increase in trading volumes, indicating that investors who were holding onto their coins began to sell off.
Philip Banks, the creator of the Chill Guy meme, made it clear that he never granted any intellectual property (IP) or licensing rights to the ChillGuy crypto project. He revealed that hackers had gained control of his social media accounts to impersonate him and falsely claim that he had given them permission to use his IP. Banks reported the hacking of his social account, emphasizing that he did not authorize the use of his artwork in the cryptocurrency space.
The ChillGuy coin gained popularity due to its relatable vibe, particularly among Gen Z and meme enthusiasts. Launched on the Solana blockchain on November 15, the coin quickly reached a market capitalization of $561 million by November 27. Its value surged even further after being listed on Binance, but the IP controversy surrounding the project led to a decline in its value.
The situation worsened when hacked tweets from Banks’ X (formerly Twitter) account caused the token to spike by 30%, reaching $0.44 before dropping again. The ChillGuy crypto team and community identified the suspicious posts and confirmed the hacking incident. All fake tweets have since been removed.
In addition to the IP violation issue, there have been reports of market manipulation, with on-chain data revealing that the market maker Wintermute purchased $1.2 million worth of CHILLGUY tokens before the hacked tweet was posted and later sold them for significant profits. This raised concerns about the integrity of trading practices during the chaos.
Banks emphasized the importance of copyright protection to prevent unauthorized use of his artwork, particularly in the cryptocurrency space. He clarified that the meme is not officially linked to the token, reiterating his stance on the matter.
The recent events surrounding the ChillGuy coin serve as a cautionary tale about the risks associated with investing in meme coins, which often lack intrinsic value and are heavily influenced by hype and market fluctuations. This incident highlights the need for investors to conduct thorough research and exercise caution when considering investments in such volatile assets.