MrBeast has reaped $10M promoting and dumping altcoins
MrBeast, one of YouTube's most popular creators, has been accused of participating in cryptocurrency promotion and dumping schemes that allegedly netted him more than $10 million.
The allegations were made against MrBeast by Blockchain investigator SomaXBT using a handle on the X social media platform.
Source: SomaXBT
According to SomaXBT, MrBeast has “allegedly made $10M+ backing low-cap IDO crypto tokens promoted by influencers like Lark Davis, Cryptobanter, KCI and others.”
Related: ZachXBT Says Increase in Thieves Targeting Offline Cryptocurrency Traders
Introduce and discard
A SomaXBT investigation claims that MrBeast has invested $100,000 in a project called SuperFarmDAO. He then used his status as an influencer to increase the project's associated SUPER token before dumping his stake.
This, according to SomaXBT, caused MrBeast to convert millions of dollars worth of SUPER into Ether (ETH) and transfer it to multiple wallets, ultimately making a profit of more than $9 million.
Cointelegraph reached out to MrBeast's media team for comment but did not receive an immediate response.
SomaXBT revealed similar activity by MrBeast, promoting and then dumping assets related to Polychain Monsters, STAK, VPP and SHOPX projects.
loss of value
At this point, it's unclear whether MrBeast has intentionally or unintentionally misrepresented his position on the projects — none of the statements seen by Cointelegraph indicated MrBeast's long-term commitment to them.
However, the alleged actions are part of a larger debate happening throughout the cryptocurrency community.
As Cointelegraph recently reported, many industry insiders believe that dumping and dumping low-capitalization tokens is harmful to the crypto community. And there was no shortage of vitriol aimed at those involved in such schemes.
Mesari Data Engineer Mike Cramer, for example, recently spoke on the matter in an August 19 newsletter, saying that this action would destroy the value of both the project and the cryptocurrency sector as a whole.
By Kramer:
Here, insiders or cartels create tokens such as supercumrocket69, promote them and lure retail investors to bid on these ‘revolutionary' new assets.
Another prominent investigator is blockchain sleuth ZachXBT, who recently introduced low-cap tokens and accused crypto influencer and trader Ansem of “facilitating a string of memecoin pumps-and-dumps”.
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