CHILLGUY Crashes 45% After IP Dispute News Raises Concerns Over Authenticity and Security

CHILLGUY, a Solana-based meme coin inspired by the TikTok sensation “Chill Guy,” has seen its value crash by 45% in just 30 minutes.

Solana (SOL)-based meme coin CHILLGUY has seen its value crash by 45% in just 30 minutes following reports of unresolved intellectual property (IP) issues and a compromised X account.

The rapid decline comes after a recent surge in popularity for $CHILLGUY, which saw it reach a peak market capitalization of over $700 million. However, the token’s use of the Chill Guy character, made famous by a viral TikTok sound, has been met with objections from its creator, Philip Banks.

$CHILLGUY Plummets 45% After IP Dispute News. Source: X

CHILLGUY Surges in Popularity, But IP Issues Remain

CHILLGUY surged in popularity throughout November, quickly becoming one of the top trending cryptocurrencies on social media. The token’s rapid ascent was fueled by the use of the Chill Guy character, which became synonymous with moments of relaxation and contentment. However, the character’s creator, Philip Banks, raised objections to the token’s use of his work without authorization.

In a recent Instagram post, Banks addressed the situation, stating that he had not authorized the use of the Chill Guy character for any crypto token. He went on to express his gratitude for the community’s support but emphasized the need to respect intellectual property rights.

"I did not give permission for any crypto token to use the Chill Guy character. I appreciate the love and community, but please be respectful of other people's work. I am not affiliated with any crypto tokens. Be careful out there and stay CHILL."

Despite Banks’ objections, several meme coins have emerged, using the Chill Guy character or his catchphrase in their branding. Among them are CHILLGUY, CHILLG, and CHILLIN, each offering varying tokenomics and decentralized exchange (DEX) listings.

Following his initial statement, Banks provided further updates on the matter. He revealed that the CHILLGUY team had approached him to discuss the possibility of using the Chill Guy character legally. After considering the proposal and engaging in extended discussions, Banks stated that he had decided to grant them the IP rights.

"After a lot of discussion and proposals, I have decided to grant the CHILLGUY team the IP rights to use the Chill Guy character. I hope this brings clarity to the situation and allows the community to enjoy the token without any further concerns. Let's continue to build and support each other in a positive way. Stay CHILL and enjoy the ride!"

However, confusion arose as Banks’ X account appeared to be hacked. The compromised account posted a tweet claiming that Banks had approved the token's use, which contradicted the official Instagram update.

To add another layer of drama, Banks’ X account became linked to the promotion of another meme coin, philb, which quickly gained traction but collapsed just as rapidly. These developments cast doubt on the authenticity of Banks’ involvement and raised concerns over the security of high-profile accounts.

Solana Meme Coin CHILLGUY Drops 45% After IP Dispute News

The resolution of the IP dispute, at least initially, appeared to have a positive impact on CHILLGUY. Following news of Banks granting the team the rights to use the Chill Guy character, the token experienced a 30% surge in price. However, the market's optimism was short-lived.

The announcement of Banks’ hacked account and the appearance of conflicting statements led to a massive sell-off, quickly erasing the gains and plunging the token's value by 45% in a half-hour.

Solana (SOL) Drops 28.7% in a Volatile Week. Source: CoinMarketCap

The official CHILLGUY X community account expressed shock over the situation, stating they were “taken by surprise” by the developments. They urged the community to remain vigilant and avoid scams.

"We are taken by surprise by the recent developments and statements regarding IP rights and token approvals. Please be aware of potential scams and stay informed by following official updates. We encourage everyone to remain vigilant and exercise caution."

Meanwhile, the rise and fall of philb further fueled skepticism among investors. The token, which was quickly added to several DEX aggregation sites, experienced a brief surge in interest before collapsing almost overnight. Its connection to Banks and the broader implications for CHILLGUY remained unclear.

The rapid ascent and subsequent downturn of CHILLGUY highlight the inherent risks of meme coin investments. While the licensing agreement could stabilize the project, the controversy surrounding Banks’ hacked account and inconsistent messaging has left investors wary. Calls for greater transparency and accountability now dominate discussions in the CHILLGUY community.