Chill Guy Creator's Legal Threats Shake Up Viral TikTok Meme Coin

Crypto markets went into disarray after Phillip Banks, the creator of the viral “Chill Guy” meme, announced plans to issue legal takedown notices for unauthorized

The creator of the viral “Chill Guy” meme is threatening to take legal action against anyone who uses his copyrighted character for unauthorized for-profit ventures.

This announcement sent shockwaves through the community and caused a sharp decline in the market value of the Chill Guy (CHILLGUY) meme coin. However, the coin quickly recovered from the initial drop.

Chill Guy Creator’s Legal Threats Impact Viral TikTok Meme Coin

In a post on X (Twitter), Banks announced his plans to take legal action for any unauthorized use of his artwork for monetary gain.

“Just putting it out there, chill guy has been copyrighted. Like, legally. I will be issuing takedowns on for-profit-related things over the next few days. Not like brand accounts using him as a trend, that is kind of something I do not really care about (I just ask for credit. or Xboxes.). Mainly unauthorized merchandise and shitcoins,” Banks stated.

The Chill Guy meme went viral on TikTok, where its relatable depiction of a laid-back character resonated with millions. The parody meme coin quickly became a hot topic on Crypto Twitter and TikTok, with influencers, presidents, sports brands like UFC, LA Clippers, Paris Saint-Germain (PSG), and everyday users using it on social media. The coin’s rapid growth is attributed to the increasing influence of platforms like TikTok in shaping crypto trends.

At its peak, the Solana-based coin had over 100,000 holders, making it one of the fastest-growing meme coins in terms of user adoption. However, as is typical of meme coins, the hype was short-lived. Banks’ legal threats and the inherent volatility of the meme coin market caused a nearly 67% drop in market cap, which stood at around $187 million after reaching a peak of $579 million on Wednesday.

Banks’ announcement highlights the growing tension within the meme coin sector. While memes like Chill Guy can generate viral trends and massive economic activity, their creators often find themselves on the sidelines with little to no financial benefit from the frenzy.

In his post, Banks clarified that his legal actions would not target non-commercial uses of Chill Guy. For example, he showed leniency towards brands using the meme, such as when the gaming brand Halo used the artwork in a tweet.

“When Master Chief trades you his plasma pistol for your rocket launcher but you’re just a chill marine,” Halo wrote.

Banks responded humorously by asking Halo for an Xbox in return. He said, “Hello, Halo. Since you used my art, can I have an Xbox? Thanks.”

Crypto Community’s Reaction to Banks’ Demands

Banks’ legal stance was met with amusement and guidance from the crypto community. Well-known figures on Crypto Twitter advised him to monetize the situation rather than pursuing litigation.

“Brother, just ask for a 2% token supply as is tradition and be happy,” user Thelema quipped.

Meanwhile, some crypto executives, like Solana Legend, the co-founder and managing partner at Frictionless Capital and MonkeDAO, highlighted the cultural significance of the Chill Guy meme. The prominent figure in the Solana ecosystem noted that the platform offers a unique way for people to discover crypto through relatable memes.

“Chill guy is becoming the Bored Ape Yacht Club / OpenSea moment for normies to be onboarded onto crypto. 5 minutes on TikTok and you can see people discovering memes,” the analyst wrote.

The viral success of CHILLGUY showcases TikTok’s increasing role in driving crypto adoption among non-crypto natives (normies). However, this latest episode also demonstrates the volatility of meme coins, where hype often trumps fundamentals. Early investors in CHILLGUY rode a wave of speculation, driven largely by TikTok, only to see their gains evaporate as the momentum shifted.

While Banks’ legal threats have stalled the meme coin’s momentum, they also highlight the challenges of monetizing intellectual property in the digital age. His attempt to protect his creation may set a precedent for other meme creators who are navigating the commercialization of their work.

BeInCrypto reached out to Phillip Banks for comment but did not receive an immediate response.