YouTuber MrBeast Accused of Making Millions from Low-Cap Token Pump-And-Dump Schemes

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Hassan Shittu

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Hassan Shittu

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Hassan, a Cryptonews.com journalist with 6+ years of experience in Web3 journalism, brings deep knowledge across Crypto, Web3 Gaming, NFTs, and Play-to-Earn sectors. His work has appeared in...

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October 13, 2024

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YouTube star Jimmy Donaldson, popularly known as MrBeast, has been accused of earning over $10 million through promotions and subsequent dumping of several low-cap cryptocurrency projects with tokens. The accusations came following an on-chain investigation.

According to the investigation conducted by crypto sleuth SomaXBT, MrBeast participated in various Initial DEX Offerings (IDOs) and token promotions for several projects, profiting significantly from the surge in token prices after his endorsements.

Projects allegedly involved include SuperFarm ($SUPER), Polychain Monsters ($PMON), SPLYT ($SHOPX), and others, with some tokens dropping over 90% in value after MrBeast’s exit, making a perfect example of a “pump and dump” scheme.

MrBeast’s Low-Cap Token Promotions: A Scam?

The investigation, which SomaXBT made public through a Twitter thread on October 11, 2024, traces MrBeast’s alleged activities using wallet data labelled as his on Arkham Intelligence.

The sleuth revealed multiple instances where MrBeast reportedly invested relatively small amounts in tokens through private deals, only to make millions by selling them during public trading surges.

One of the most significant cases is that of the SuperFarm ($SUPER) token, a project backed by Elliot Trades.

According to SomaXBT, MrBeast invested $100,000 in the project and received 1 million $SUPER tokens in return.

Following his investment, the token price surged, and on March 30, 2021, MrBeast allegedly transferred his $SUPER tokens to a secondary wallet, where they were dumped in a series of trades totaling 1,900 ETH (approximately $3.7 million at the time).

The sleuth further alleged that MrBeast received additional $SUPER tokens as part of a vesting contract, which he subsequently sold for another $5.5 million, bringing his total earnings from the project to around $9 million.

SomaXBT’s investigation also highlights MrBeast’s involvement with Polychain Monsters ($PMON), another low-cap token project.

In this instance, MrBeast allegedly invested $25,000 and received 25,000 $PMON tokens. On March 31, 2021, his wallet reportedly transferred the tokens to another wallet, where they were sold in a series of trades amounting to 685 ETH (roughly $1.3 million).

The investigation points out that MrBeast received further allocations of $PMON tokens, ultimately making around $1.7 million from his investment.

Other Tokens: SPLYT ($SHOPX), STAK, and Virtue Poker ($VPP)

The investigation also outlines MrBeast’s involvement in other token projects, including SPLYT ($SHOPX), where he reportedly invested $25,000 and made $765,000 after selling his allocation.

He is also said to have made $1.25 million from $STAK tokens, though the exact on-chain details of this transaction were not as thoroughly documented as the others.

For Virtue Poker ($VPP), MrBeast allegedly participated in a virtual poker tournament, receiving 600,000 VPP tokens in return.

He reportedly sold 200,000 tokens for a significant profit, while still holding the remaining 400,000 tokens.

SomaXBT draws attention to the ethical implications of these transactions, suggesting that MrBeast’s behavior mirrors that of pump-and-dump schemes.

In these schemes, influencers with large followings promote a low-cap token, driving up its price, only to sell their holdings when the value peaks, leaving retail investors holding the bag as prices plummet.

The investigation also points to the significant price declines in many of these projects after MrBeast’s alleged sell-offs.

For instance, $SUPER is now down 75% from its peak, and other tokens, like $PMON and $SHOPX, have suffered even greater losses, with some down more than 90%.

This is not quite new in the crypto space, especially toward the beginning of this year, when influencers like Andrew Tate, Iggy Azalea, and others were all caught in their market manipulation activities.