Bubblemaps, a blockchain analytics platform, has recently brought to light some concerning allegations regarding insider trading activity in meme coin projects promoted by influencers Andrew Tate and Iggy Azalea. The platform revealed that at the launch of the DADDY coin, insiders had allegedly acquired a significant portion of the token supply, totaling over $45 million distributed across 21 wallets. Suspiciously, on June 9, a transaction moved 40% of the DADDY supply to Andrew Tate’s wallet, just before he started promoting the coin on his social media platforms. This raises questions about the integrity of the project and the fairness of its distribution.
Further analysis by Bubblemaps uncovered that 11 wallets, all funded through Binance with nearly identical amounts, simultaneously purchased 20% of DADDY on June 9, prior to the project’s official announcement. These wallets now collectively hold around 19% of the total supply, valued at $30 million. The platform suggested that these linked wallets potentially belong to the same group, as the timing and amounts of the purchases strongly suggest coordination. This kind of behavior undermines the trust and transparency that are crucial in the cryptocurrency space.
Additionally, Bubblemaps identified two more clusters linked via a particular wallet, which acquired 10% of the DADDY supply before Andrew Tate began promoting the coin. The firm warned that any sales from these clusters, along with Tate’s unburned tokens accounting for 40% of the total supply, could severely impact the coin’s liquidity. Tate’s response to the allegations, promising never to sell but only burn and buy, raises questions about his intentions and the sustainability of the project. The surge in market capitalization for Daddy Tate (DADDY) coin, reaching $259 million, is tainted by these allegations of insider trading.
Bubblemaps also previously implicated Iggy Azalea in similar activities related to the MOTHER coin. Insiders allegedly purchased 20% of the MOTHER supply at launch and subsequently sold $2 million worth of tokens for profit. The investigation focused on a wallet that bought a massive amount of MOTHER tokens before distributing them across several other wallets. Most of these funds have been sold off, resulting in significant profits for those involved. The Mother Iggy (MOTHER) token has seen a decrease in market cap and price, indicating the negative impact of insider trading on the project’s sustainability.
The allegations of insider trading in these meme coin projects have sparked debate within the crypto community. Some view it as a “good insider launch,” suggesting that such practices are acceptable in the world of meme coins. However, others argue that there is no such thing as a fair launch in meme coins, highlighting the normalized nature of insider trading in certain circles. It is essential for the community to address these issues and strive for greater transparency and fairness in all cryptocurrency projects.
The prevalence of insider trading in meme coin projects undermines the trust and credibility of the cryptocurrency space. It is crucial for influencers and projects to uphold ethical standards and avoid engaging in practices that harm investors and the community at large. Transparency, accountability, and fairness should be prioritized to ensure the long-term success and legitimacy of the cryptocurrency industry.
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