A blockchain data analysis platform, Bubblemaps, has brought to light the activities of Dubai-based entrepreneur Sahil Arora. Arora allegedly amassed over $5 million by leveraging celebrity endorsements to promote memecoin projects. Reports suggest that he manipulated market participants for personal profit, using the influence of figures like Floyd Mayweather, Caitlyn Jenner, and Iggy Azalea to boost these projects.
How Did Arora Operate?
Bubblemaps revealed that Arora’s strategy was straightforward yet effective. By holding a significant portion of a token’s supply, he was able to sell his shares for substantial profits once the celebrity endorsements drove up the token’s value. A screenshot of an Instagram chat with Jason Derulo, where Arora offers $200,000 for a promotional tweet, underscores his direct approach to engaging celebrities. Access NEWSLINKER to get the latest technology news.
The data further shows that Arora controlled more than 40 crypto addresses. He typically possessed 25-40% of the total supply for each project, selling his assets via a primary address identified later. This quick-sale model post-endorsement facilitated his large financial gains.
What Were the Oversights?
However, Bubblemaps’ investigation was not without flaws. Blockchain detective ZachXBT pointed out mistakes in the initial report, particularly noting that one address was linked to the Poloniex exchange. This prompted Bubblemaps to revise their figures, confirming that Arora’s earnings were indeed around $5 million. Despite these revelations, Arora continues his activities unchecked.
User-Usable Inferences
Key Takeaways for Investors:
- Verify the legitimacy of celebrity endorsements in crypto projects.
- Be cautious of large token holders who can manipulate market prices.
- Investigate the background and activities of project promoters before investing.
- Understand that not all blockchain data analyses are free from errors.
Legally, the situation remains murky, as no celebrity has taken action against Arora, possibly due to their involvement in promotions. Meanwhile, investors have incurred financial losses. Another report highlights that over 30 celebrities have launched memecoin projects since June, with an average value drop of 94% following these endorsements.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should conduct their own research.
Source: https://en.bitcoinhaber.net/crypto-scandal-involves-celebrities