Legal Challenges Emerge for CHILLGUY Memecoin

The “Chill Guy” meme, created by artist Phillip Banks in October 2023, depicts an anthropomorphic brown dog with a subtle smirk and a notably relaxed demeanor.

The "Chill Guy" meme, created by artist Phillip Banks, has become a viral sensation on social media, particularly on TikTok, where thousands of videos feature the laid-back canine character. This popularity has caught the attention of cryptocurrency developers, who have launched CHILLGUY, a Solana-based token that features the character's likeness.

The results have been explosive: within just five days, the token's market capitalization has surged to approximately $500 million, with one early investor reportedly turning a $1,000 investment into more than $400,000 in realized gains, with additional unrealized profits exceeding $600,000.

But the token's meteoric rise has hit a significant roadblock. Banks, the original creator of the Chill Guy character, has announced his intention to protect his intellectual property rights.

"I do not, and will never, endorse or condone any crypto-related projects involving my work," Banks stated firmly on social media. "I will never give permission to use my art for anything crypto-related."

Banks has now copyrighted the character and plans to issue takedown notices for unauthorized for-profit uses, particularly targeting "unauthorized merchandise and shitcoins."

This legal threat has already impacted the token's value, causing it to drop nearly 50% from its Wednesday peak.

Despite the controversy, CHILLGUY's success has had notable ripple effects across the cryptocurrency ecosystem. MoonPay, a major Solana on-ramp service, reported its highest single-day transaction volume during the token’s peak, suggesting that social media trends are driving new interest in cryptocurrency investments.

The token currently trades at approximately $0.36, with a market capitalization of $360 million. Notable figures in the crypto community, including El Salvador's President Nayib Bukele, have commented on the phenomenon, while some crypto traders have humorously suggested that Banks should accept tokens or money through a Solana address as compensation.

The CHILLGUY phenomenon has sparked a new trend among crypto speculators: searching TikTok for potential viral tokens. This platform, traditionally not associated with cryptocurrency trading, has become an unexpected source of market momentum as traders look for the next big meme coin opportunity.

However, experts warn about the risks associated with such speculative investments. While the token's total supply is capped at 1 billion, with relatively even distribution among holders, its liquidity stands at just $5 million, raising concerns about price stability during major sell-offs.