YouTube sensation MrBeast, whose real name is Jimmy Donaldson, is facing accusations of profiting over $10 million from promoting and subsequently dumping low-cap cryptocurrency projects. These allegations surfaced after an on-chain investigation conducted by crypto sleuth SomaXBT.
SomaXBT’s investigation, made public through a Twitter thread on October 11, 2024, revealed that MrBeast participated in various Initial DEX Offerings (IDOs) and token promotions for projects such as SuperFarm, Polychain Monsters, and SPLYT, among others. After MrBeast endorsed these tokens, their prices surged, only to drop over 90% in value once he exited, indicating a classic “pump and dump” scheme.
The investigation traced MrBeast’s alleged activities using wallet data associated with him and labeled as his on Arkham Intelligence. It found multiple instances where MrBeast invested small amounts in tokens through private deals and then made millions by selling them during public trading surges.
One notable case highlighted by SomaXBT is MrBeast’s involvement with the SuperFarm token. He reportedly invested $100,000 and received 1 million $SUPER tokens. After the token price surged, he transferred his tokens to a secondary wallet and sold them for approximately $3.7 million. In addition, MrBeast sold $SUPER tokens received from a vesting contract for another $5.5 million, resulting in total earnings of around $9 million from the project.
The investigation also uncovered MrBeast’s participation in the Polychain Monsters token project. He allegedly invested $25,000 and received 25,000 $PMON tokens, which were later sold for approximately $1.3 million.
SomaXBT’s investigation further revealed MrBeast’s involvement in other token projects, including SPLYT, where he reportedly made $765,000 from a $25,000 investment, and STAK, from which he earned $1.25 million. Details of these transactions were not as extensively documented as the others.
The investigation raises ethical concerns about MrBeast’s actions, likening them to pump-and-dump schemes. These schemes involve influencers with large followings promoting low-cap tokens to drive up their prices, only to sell their holdings when the value peaks, leaving retail investors with losses as prices plummet. The investigation also highlights the significant price declines in these projects following MrBeast’s alleged sell-offs, with some tokens experiencing losses of more than 90%.
While these allegations against MrBeast are not unprecedented in the crypto space, with other influencers previously caught in market manipulation activities, they have sparked discussions about the ethics of such practices.