TikTok Meme Coin ChillGuy… Surging 101% on Original Creator’s Legal Action Warning

The cryptocurrency market has fallen into turmoil after the creator of the viral "CHILLGUY" meme, Phillip Banks, announced plans to take legal action against the unauthorized commercial use of his copyrighted character. This move has caused ripples in the community, with the market value of the CHILLGUY meme coin plummeting and then quickly recovering. CHILLGUY creator's legal threat... Viral TikTok meme coin shaken Banks publicly stated on X (Twitter) that he intends to take legal action for copyright infringement, as his work has been used without authorization to generate profits. "To be clear, CHILLGUY is copyrighted. Legally. Over the next few days, I'll be taking action to address commercial uses. I don't really care about brand accounts using it as a trend," - Banks expressed. The CHILLGUY meme gained popularity on TikTok for its depiction of a laid-back character that resonated with millions. The parody meme coin quickly became a sensation on cryptocurrency Twitter and TikTok, with influencers, a , UFC, LA Clippers, Paris Saint-Germain (PSG), and regular users using it on social media. The rapid growth of this coin demonstrates the influence of social media platforms like TikTok in shaping cryptocurrency trends. At its peak, the -based coin set a record as one of the fastest-growing in terms of user adoption, with over 100,000 holders. However, the high interest was temporary, as the nature of meme coins dictates. Banks' legal threat and the natural volatility of the meme coin market caused the market capitalization to plummet by around 67%, from a Wednesday high of $579 million to around $187 million. Banks' lawsuit announcement highlights the growing tensions within the meme coin sector. Memes like CHILLGUY can trigger viral trends and generate tremendous economic activity, but creators are often left out, receiving little or no financial benefit from the frenzy. Banks has made it clear that he will not take legal action against non-commercial uses of CHILLGUY. For example, he has shown leniency towards brands using the meme, such as when the game brand Halo tweeted about using the work: "When the Master Chief trades his Rocket Launcher for your Plasma Pistol, you're just a chill Marine." - Halo wrote. Banks humorously responded to Halo, asking for an Xbox in return for using his work. TikTok, a success channel Banks' legal stance has received input and advice from the cryptocurrency community. Prominent figures in the cryptocurrency Twitter space have suggested that he should monetize the situation rather than pursue legal action. "Brother, as per tradition, request a 2% token supply and be happy," user Thelema joked. Meanwhile, some cryptocurrency executives, such as Solana Legend, a co-founder and managing partner of Frictionless Capital and Monkey DAO, have highlighted the cultural significance of the CHILLGUY meme. A prominent figure in the Solana ecosystem noted that the platform provides a unique way for people to discover cryptocurrency through memes that resonate with them. "CHILLGUY is becoming the boring ape yacht club / OpenSea moment where regular people can onboard into crypto. You can see people discovering memes on TikTok in 5 minutes," the analyst wrote. The viral success of CHILLGUY underscores the role of TikTok in adoption. However, the recent controversy reflects the volatility of meme coins, where high interest often outpaces the underlying fundamentals. The early investors in CHILLGUY benefited from the speculative frenzy sparked by TikTok, but the momentum shift has erased those gains. Banks' legal threat has shaken the momentum of the meme coin, but it also highlights the challenges in monetizing intellectual property in the digital age. His attempt to protect his creation may set a precedent for other meme creators facing the commercialization of their work. Phillip Banks did not immediately respond to BeInCrypto's request for comment.