Crypto Influencer Jaypeg Faces “Uptober” Memecoin Pump And Dump Accusations

Popular crypto influencer Jaypeg has been accused of pushing the “Uptober” cryptocurrency, selling his tokens, and refusing to accept the receipts of the funds.

The Uptober crew and the Telegram group said they made a deal with Jaypeg to market the memecoin in exchange for 2% of Uptober’s supply, or about $2,200.

However, according to reports, Jaypeg sold them but later denied receiving any money. In his defense, the influencer said that the address was random and did not belong to him, therefore he quickly removed the receiving addresses that had been provided to the group after accepting the transaction in a Telegram conversation and getting the money.

Later, the Uptober team sought clarification from blockchain expert ZackXBT, who discovered connections between Jaypeg’s previous actions and the wallet address. Not long after Jaypeg released an unboxing video of the Solana Saga smartphone in January of this year, this address was used to claim airdrops from the device.

Jaypeg still continues to deny having anything to do with the wallet in spite of the proof that has been shown, going so far as to call the Uptober team blackmailers. However, interestingly, he further declared that he had given the disputed money to a charitable organization.

What Are Crypto Pump-And-Dump Schemes?

Crypto pump-and-dump schemes involve the creation or acquisition of substantial amounts of a cryptocurrency, which is then marketed to artificially raise its value (pump) and profit from it by selling it to gullible investors.

The supply rises and the price falls as offenders dump their tokens. When the con artists sell off their holdings, the prices of many of these assets—many of which are worthless—will not rise. Stated differently, the scammers are counting their spoils while the gullible investors are stuck with essentially worthless tokens.

Why Are Memecoins Witnessing A Rise In Demand?

Memecoin has become a fantastic substitute for cryptocurrency investors who wish to avoid investing in the popular coins. It appears that memecoins are currently attracting the attention of the cryptocurrency market more so than DeFi ventures.

Meme coins have gained popularity mostly due to their humorous correlation with a certain online meme. Strangely, DOGE, the first meme coin ever created, gained traction after being created in 2013 as a parody of the cryptocurrency craze.

Memes are popular among retail investors, particularly younger ones, because they typically only cost a few cents or even a fraction of a cent. It therefore requires very little capital, and anyone can participate in the hopes that it will rise hundreds of percentages and yield a substantial reward.