YouTube sensation Jimmy Donaldson, widely known as Mr Beast, has found himself at the center of a controversial cryptocurrency scandal.
According to a detailed on-chain investigation conducted by crypto sleuth SomaXBT, Mr Beast allegedly earned over $10 million through the promotion and subsequent dumping of several low-cap cryptocurrency projects.
The investigation, made public through a Twitter thread on October 11, 2024, uses wallet data labeled as Mr Beast’s on Arkham Intelligence to trace his alleged activities.
The accusations suggest that Mr Beast participated in various Initial DEX Offerings (IDOs) and token promotions, profiting significantly from the surge in token prices following his endorsements.
This behavior, if proven true, bears a striking resemblance to classic pump-and-dump schemes, where influencers leverage their large followings to artificially inflate token prices before selling their holdings at a profit.
Detailed Breakdown of Alleged Schemes
The investigation highlights several projects where Mr Beast allegedly engaged in questionable practices. One of the most significant cases involves the SuperFarm ($SUPER) token, a project backed by Elliot Trades.
SomaXBT revealed that he invested $100k in the project and received 1,000,000 $SUPER tokens. Following a surge in the token’s price, Mr Beast allegedly transferred his tokens to a secondary wallet on March 30, 2021, where they were sold in a series of trades totaling 1,900 ETH.
The sleuth further claims that Mr Beast received additional $SUPER tokens through a vesting contract, which he later sold for another $5.5 million, bringing his total earnings from this project alone to around $8.9 million.
Scope and Impact of the Alleged Activities
However, Mr Beast’s involvement in work with other token projects is extended beyond these primary cases. For example, he made $1.25 million off $STAK tokens, and the on-chain detail of it wasn’t as carefully documented. That said, alleged to have competed in a virtual poker tournament as Mr Beast, Virtue Poker ($VPP) paid him 600,000 VPP tokens.
According to him, he disposed of 200,000 tokens for profit and kept 400,000 in reserve. These alleged activities have a significant impact on the crypto market. And many of the projects that Mr Beast allegedly sold into are seeing big price drops afterwards.
For instance, $SUPER is now 74.6% off its peak, with other tokens such as $PMON and $SHOPX taking even worse hits, with some more than 80%. Normally these projects should be sharp in their decline, and as such likely caused large losses for the retail investor who might’ve purchased this project based on Mr Beast’s purported endorsement.
Broader Implications and Industry Context
This scandal, if proven true, highlights ongoing issues within the cryptocurrency space, particularly the vulnerability of retail investors to influencer-driven market manipulation.
It’s worth noting that this is not an isolated incident in the crypto world. Earlier this year, other high-profile influencers like Andrew Tate and Iggy Azalea were also implicated in similar market manipulation activities.
The ethical implications of these actions are significant, as they exploit the trust and influence that content creators have built with their audiences. The case against Mr Beast serves as a stark reminder of the need for increased regulation and transparency in the cryptocurrency market, especially concerning celebrity endorsements and promotions.
It also shows the importance of due diligence for investors, particularly when dealing with low-cap, highly volatile tokens that are susceptible to manipulation. As the investigation continues to unfold, it may prompt wider discussions about influencer responsibility.