Share Price Plummets 90%, This TikTok Influencer Faces Potential Losses

Jakarta, CNBC Indonesia - World-renowned TikTok star Khaby Lame is now at risk of bankruptcy. The fate of a massive deal worth nearly US$975 million involving him is under severe pressure. The cause is the share price of his partner company, Rich Sparkle Holdings, which has plunged by around 90% in a short time.

Citing Business Insider, published on 14 April 2026, Rich Sparkle’s share price, which once soared above US$180, has now plummeted to around US$11. This drastic decline is directly eroding the potential value that Lame could receive, as his compensation depends on the company’s share price.

In the transaction scheme, Lame’s company will receive around 75 million new shares at an indicative price of US$13 per share. However, the real value that can be pocketed is heavily determined by the market price. This means that as the shares fall, the expected wealth value shrinks sharply.

Nevertheless, the deal has not yet been officially completed or received approval from stock exchange authorities. Thus, the impact on Lame’s actual wealth remains potential rather than realised.

Rich Sparkle itself plans to develop an artificial intelligence (AI) avatar of Lame to boost global e-commerce and endorsement businesses. The projected target is ambitious, with potential sales of up to US$4 billion per year.

However, several analysts consider this target overly optimistic. This is because the live commerce market outside China, including in the United States, is still far behind. Even major platforms in the US have not approached such figures.

Moreover, the business model relying on a single figure is deemed high-risk. Dependence on an individual’s popularity makes the company’s valuation difficult to measure and vulnerable to volatility.

Converting social media popularity into a large-scale public business is no easy feat. Several influencer-based companies have previously failed after listing on the stock exchange.