Insider Trading Allegations in Meme Coin Projects
A blockchain analytics platform has uncovered insider trading activity related to meme coin projects endorsed by Andrew Tate and Iggy Azalea.
Andrew Tate’s DADDY Coin Allegations
➢ On June 9, 40% of the DADDY supply was moved to Andrew Tate’s wallet just before he promoted the coin on social media.
➢ Data revealed that 11 wallets funded through Binance simultaneously purchased 20% of DADDY on June 9 before the official announcement.
➢ These wallets hold 19% of the total supply, valued at $30 million, potentially belonging to the same group.
➢ Two additional clusters, linked by a specific wallet, acquired 10% of the supply valued at $16 million before Tate’s promotions.
➢ Any sales from these clusters and Tate’s 40% unburned tokens could affect the coin’s liquidity.
Iggy Azalea’s MOTHER Coin Incident
➢ Insiders allegedly bought 20% of the MOTHER coin’s supply at launch and sold $2 million worth of tokens.
➢ An investigation revealed a wallet that purchased 109 trillion MOTHER tokens, distributing them across seven others, resulting in profits of $1.4 million.
➢ The MOTHER token’s market cap has decreased from $267.58 million to $158 million, with a price drop from $0.27 to $0.148.
➢ Some view the incident as a “good insider launch,” while others argue that fair launches in meme coins are non-existent.
Community Response and Market Impact
➢ The allegations have sparked debate within the crypto community about the prevalence of insider trading in meme coins.
➢ Tate’s response to the accusations includes a commitment to not sell tokens received in his wallet.
➢ The market capitalization of DADDY and MOTHER coins has fluctuated following the insider trading revelations.
➢ Price volatility and sentiment shifts are expected with the ongoing controversy surrounding these meme coins.
Hot Take: Examining Insider Trading in Meme Coins
➢ Insider trading allegations continue to plague the crypto space, raising concerns about market manipulation and transparency.
➢ Regulatory bodies may increase scrutiny on influencers and celebrities promoting digital assets to prevent similar incidents.
➢ Investors should remain vigilant and conduct thorough research before participating in meme coin projects to mitigate risks associated with potential insider activities.
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