The cryptocurrency world is no stranger to controversy, and a recent thread by blockchain analytics platform Bubblemaps has brought insider trading allegations to the forefront. The accusations involve meme coin projects promoted by Andrew Tate and Iggy Azalea, shedding light on suspicious activities surrounding the launch of DADDY and MOTHER coins.
According to Bubblemaps, at the beginning of the DADDY coin launch, insiders allegedly secured 30% of the token supply, amounting to a staggering $45 million spread across 21 wallets. What raises eyebrows is a transaction on June 9, where 40% of the DADDY supply was moved to Andrew Tate’s wallet just before he ramped up promotion of the coin on his social media platforms. Additionally, data from Bubblemaps points out that 11 wallets, all funded through Binance with nearly identical amounts, simultaneously purchased 20% of DADDY on June 9, before the project’s official announcement. These wallets now collectively hold around 19% of the total supply, valued at $30 million.
Bubblemaps further uncovered two clusters, connected by a specific wallet, that acquired 10% of the DADDY supply, worth $16 million, before Tate’s promotional push. The firm warned about potential liquidity issues if any sales were made from these clusters or from Tate’s 40% share of unburned tokens. Interestingly, Tate responded to the allegations by pledging to hold onto the tokens sent to his wallet, emphasizing his commitment to only burning and buying.
The aftermath of these claims has been felt in the cryptocurrency market, with the DADDY coin surging in market capitalization to $259 million and trading at $0.25, reflecting a triple-digit increase within a day. On the other hand, Bubblemaps had previously implicated Iggy Azalea in similar activities related to the MOTHER coin. Insiders allegedly snapped up 20% of the MOTHER supply at launch and proceeded to sell $2 million worth of tokens. The investigation centered on a wallet that acquired 109 trillion MOTHER tokens before dispersing them across seven other wallets. Although most of the funds have been liquidated for a profit of $1.4 million, a portion valued at approximately $400,000 remains. This same wallet transferred funds to others, resulting in a collective profit of about $800,000 through the sale of 8% of the token supply.
These revelations have sparked a debate within the crypto community, with varying opinions on the matter. Some view these incidents as examples of a “good insider launch,” while others argue that there is no such thing as a fair launch in meme coins, suggesting that such occurrences are commonplace. These differing viewpoints underscore the complexity and ambiguity surrounding insider trading allegations in the cryptocurrency space.
The recent allegations of insider trading in meme coin projects associated with prominent personalities have once again highlighted the need for transparency and integrity within the cryptocurrency industry. As the debate rages on, it is crucial for stakeholders to address these issues head-on and work towards establishing more robust guidelines to prevent such incidents from tarnishing the reputation of the entire sector.