In yet another accusation of insider trading, the crypto market is in shock with over 300 million fans. YouTuber Jimmy Donaldson, known as MrBeast, is accused of making more than $23 million through low-cap token promotions and alleged pump-and-dump schemes. On-chain analytics platform OnchainLens shared findings on The investigation shows that these wallets were linked to a series of ‘pump-and-dump’ tactics, misleading investors while profiting from those with early access.
Here’s what you need to know about this insider trading practice!
A series of pump-and-dump tactics
According to previous reports, a key wallet linked to MrBeast invested $25,000 in the Ethereum-based meme coin Polkamon (PMON), which was sold shortly afterwards for a staggering $1.3 million profit. This wallet also bought a million SUPER tokens for $100,000, and later sold them at the token’s all-time high, netting over $9 million before the token value crashed by more than 90%. ZachXBT, a notable on-chain sleuth, had previously highlighted PMON’s controversial trading activities, allegedly taking advantage of insiders at the expense of retail investors.
Wallet link to MrBeast raises questions
Blockchain company Arkham Intelligence linked a master wallet to MrBeast, which it previously said it used to buy NFTs. However, there is no solid evidence that he carried out the transactions, leaving it unclear who may have managed these activities. Due to the complexity of blockchain transactions, Coinbase’s Conor Grogan also reviewed the wallet, but was hesitant to draw any firm conclusions.
The investigation into MrBeast’s alleged crypto trading has led to mixed reactions. Some see it as a warning against influencers and risky crypto projects, while others point out that it is difficult to link on-chain transactions directly to specific individuals without clear evidence. This could impact crypto regulations and MrBeast’s image, especially given its reputation for transparency and philanthropy-oriented content.
Is this a warning to naive investors to invest carefully in crypto projects?
