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MrBeast, a prominent crypto influencer with 31.2 million followers, has found himself in a weird dispute after allegedly discovered to have made millions through the so-called crypto pump-and-dump scheme.
A popular blockchain analytics platform, Lookonchain, shared some significant revelations on the X platform, indicating that MrBeast profited more than $23 million by endorsing various low-cap tokens and later selling them.
Most of these cryptocurrencies have currently lost 90% of their value, with some of them rebranding after huge losses.
MrBeast allegedly invested only $100,000 in a project called SuperFarmDAO (now SuperVerse) and used his influence to pump the value of the project’s token, SUPER.
As per revelations, after promoting the token, MrBeast sold off his holdings, converting millions of dollars’ worth of SUPER into ETH, eventually profiting over $11.5 million.
MrBeast further engaged in a similar activity in other projects including ERN (Ethernity Chain), PMON (Protocol Monsters), STAK (Jigstack) and AIOZ (AIOZ Network) where he allegedly promoted and ultimately sold off his assets, making another total profit worth $8.7 million.
It remains unclear whether MrBeast intentionally faked his participation in these crypto projects or unknowingly participated in what has been considered a market manipulation scheme.
The accusations against MrBeast come amid current conversations within the crypto community concerning the detrimental effect of market manipulation activities on small tokens.
Many people in the crypto sector are distressed by such activities that weaken the value of crypto projects and even undermine the reputation of the entire industry.
In many cases, insiders and influencers develop hype around low-cap tokens, motivating retail investors to purchase them before selling off their own assets.
Influencers engaging in pump-and-dump schemes often target social media platforms and use complicated tactics to convince innocent investors to join.
In certain cases, they have impersonated prominent market analysts and renowned investment advisors to lure investors into the scheme.
Nicholas Otieno is a fintech writer specializing in cryptocurrency markets. Since 2019, he has written articles to educate readers about cryptocurrency and its substantial positive impact on global prosperity. Nicholas is a Bitcoin holder, believing firmly in its fundamentals.
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Source: https://dailyhodl.com/2024/11/01/social-media-crypto-influencer-mrbeast-accused-of-profiting-over-23-million-pump-and-dump-scheme/