A recent investigation has revealed that YouTube sensation Jimmy Donaldson, better known as MrBeast, may have made over $10 million by promoting and then selling low-cap cryptocurrency tokens. These revelations have raised ethical concerns and sparked accusations of involvement in pump-and-dump schemes.
Crypto investigator SomaXBT conducted an on-chain analysis that traced MrBeast’s activities, indicating that he took part in various Initial DEX Offerings (IDOs) and token promotions, profiting significantly from price spikes following his endorsements. Allegedly involved projects include SuperFarm ($SUPER), Polychain Monsters ($PMON), and SPLYT ($SHOPX), with some tokens reportedly plummeting by over 90% in value after his exit, fitting the mold of a “pump and dump” operation.
Examination of MrBeast’s Token Promotions: A Scam?
The investigation, publicized in a Twitter thread by SomaXBT on October 11, 2024, utilized wallet data labeled as MrBeast’s from Arkham Intelligence. It uncovered several instances where he supposedly invested modest amounts in tokens through private deals, only to cash out millions during public trading surges.
One prominent case involves the SuperFarm ($SUPER) token, backed by Elliot Trades. MrBeast is said to have invested $100,000, receiving 1 million $SUPER tokens in return. Following the surge in token price, he reportedly transferred his tokens to a secondary wallet on March 30, 2021, where they were sold in multiple trades totaling 1,900 ETH (about $3.7 million at the time). Furthermore, SomaXBT claims he received additional $SUPER tokens from a vesting contract, which he sold for another $5.5 million, resulting in total earnings from the project of approximately $9 million.
Other Involvements: Polychain Monsters and More
SomaXBT’s investigation also points to MrBeast’s dealings with Polychain Monsters ($PMON), where he allegedly invested $25,000 for 25,000 tokens. His wallet reportedly transferred these tokens on March 31, 2021, to another wallet, resulting in sales amounting to 685 ETH (around $1.3 million). Ultimately, he is believed to have profited around $1.7 million from this investment.
In addition, MrBeast’s involvement with other tokens is highlighted, including SPLYT ($SHOPX), in which he reportedly invested $25,000 and later made $765,000 by selling his allocation. He also purportedly earned $1.25 million from $STAK tokens, although details on this transaction were less thoroughly documented.
For Virtue Poker ($VPP), MrBeast is said to have participated in a virtual poker tournament, receiving 600,000 VPP tokens. He reportedly sold 200,000 tokens for a substantial profit, while still retaining 400,000 tokens.
Ethical Concerns and Market Impact
SomaXBT emphasizes the ethical implications of MrBeast’s transactions, likening his actions to those typical of pump-and-dump schemes. Such schemes involve influencers promoting low-cap tokens to inflate prices, only to sell their holdings at a profit, leaving retail investors to face significant losses when prices crash.
The investigation notes substantial declines in many of these projects following MrBeast’s alleged sell-offs. For example, $SUPER has dropped 75% from its peak, and other tokens, such as $PMON and $SHOPX, have experienced even steeper losses, some plummeting more than 90%.
This scenario is not unique in the crypto space, echoing the earlier controversies involving influencers like Andrew Tate and Iggy Azalea, who were also implicated in market manipulation earlier this year.
Disclaimer: This content does not constitute trading or investment recommendations. It’s essential to conduct your own research before purchasing any cryptocurrency or investing in any services.
