The blockchain analytics platform Bubblemaps has raised concerns about possible insider trading in meme coin projects endorsed by influencers such as Andrew Tate and Iggy Azalea. The accusations, outlined in a detailed report on June 12, suggest that insiders may have obtained a significant portion of the token supply at the inception of the DADDY coin. This purported insider trading involved acquiring 30% of the token supply, equating to over $45 million, spread across 21 wallets.
Specific on-chain data from Bubblemaps indicated that on June 9, a transaction transferred 40% of the DADDY supply to Andrew Tate’s wallet shortly before he started promoting the coin on his social media platforms. Additionally, 11 wallets, funded through Binance, simultaneously purchased 20% of DADDY on the same day, just before the project’s official announcement. As a result, these wallets collectively hold around 19% of the total supply, valued at $30 million. While there is a suggestion that these wallets may be linked, confirmation is challenging due to their Binance funding. However, the timing and amounts of these purchases strongly imply a coordinated effort.
Furthermore, Bubblemaps identified two additional clusters, interconnected through a common wallet, that acquired 10% of the DADDY supply, valued at $16 million, prior to Andrew Tate’s promotional activities. The firm warned that any potential sales from these clusters, alongside Tate’s unburned tokens accounting for 40% of the total supply, could significantly impact the coin’s liquidity. In response to the allegations, Andrew Tate stated his commitment to holding and burning the tokens, emphasizing his dedication to the project.
Bubblemaps had previously implicated Iggy Azalea in comparable activities related to the MOTHER coin project. The firm alleged that insiders purchased 20% of the MOTHER coin supply at launch and subsequently sold a substantial amount of tokens, resulting in a profit of $1.4 million. Notably, a specific wallet bought a significant number of MOTHER tokens before dispersing them across multiple wallets. The funds from these sales amounted to around $800,000, impacting the coin’s market capitalization and price. The MOTHER Iggy (MOTHER) token’s market cap has experienced fluctuations, along with its trading price, raising concerns within the crypto community.
The allegations of insider trading by influencers in meme coin projects have sparked debate within the crypto community. While some individuals view such incidents as part of a “good insider launch,” others argue that fairness is compromised in meme coin projects, highlighting the normalization of such practices. These controversies surrounding DADDY and MOTHER coins emphasize the need for greater transparency and ethical practices in the cryptocurrency space.
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