In May 2024, renowned Australian singer Iggy Azalea launched her own meme coin called MOTHER. The coin was presented as a key element of a large ecosystem of products, and Azalea was actively involved in promoting it among crypto investors.
This is reported by Finway
Investors Filed a Lawsuit Over Token Value Loss
Shortly after the launch, a group of traders filed a collective lawsuit, accusing Iggy Azalea of deceiving investors. The plaintiffs claim that the singer intentionally misled buyers by creating the illusion of significant commercial value for the token through statements about its integration into various projects, including an online store for branded merchandise and the online casino Motherland. However, according to them, after the launch, most of the promised integrations were not realized, and transactions at the casino were mainly conducted in USDT rather than MOTHER.
The lawsuit states that the meme coin MOTHER was initially positioned as an asset with real commercial prospects, which was supposed to increase its value and attract institutional investors. At its peak, the price of MOTHER reached approximately $0.23, with a market capitalization exceeding $200 million. However, over time, the asset quickly lost popularity and significantly depreciated, causing losses for token holders.
“This is not about ordinary volatility. The asset had a celebrity-backed advertising campaign that encouraged consumers to buy and hold the digital token based on specific, substantial claims about real utility, commercial integration, support from institutional market makers, and further development,” the document states.
Investors’ Demands and Reaction to the Situation
The group of affected individuals is led by Wisconsin resident Kenneth Kolbrak. He claims he purchased MOTHER tokens based solely on promises of their utility. According to Kolbrak, had it not been for these statements, he would have spent less money or refrained from purchasing altogether.
Among the key aspects that caused investor dissatisfaction were the failure to fulfill promises regarding the integration of the token into real products and services, as well as the sharp decline in its value. The plaintiffs are seeking compensation from Iggy Azalea in an amount to be determined by the court, as well as reimbursement of legal costs.
Price of MOTHER token on Raydium exchange