A recent thread by blockchain analytics platform Bubblemaps has shed light on suspected insider trading activities related to the meme coin projects endorsed by Andrew Tate and Iggy Azalea. The allegations unveiled a concerning pattern of behavior surrounding the launch of DADDY coin, where insiders purportedly gathered a significant portion of the token supply, equivalent to over $45 million distributed across 21 wallets.
Initial Transactions and Suspected Links
On June 9, a suspicious transaction occurred, moving 40% of the DADDY coin supply to Andrew Tate’s wallet shortly before he commenced the promotion of the coin on his social media channels. Further analysis of on-chain data from Bubblemaps indicated that 11 wallets, funded through Binance with similar amounts in a simultaneous manner, acquired 20% of the DADDY token just before the project’s official announcement. These wallets now collectively hold around 19% of the total supply, with an estimated value of $30 million.
The firm suggested a potential connection among these wallets, speculating that they might belong to the same group. However, due to the funding source being Binance, conclusive confirmation of their association remains challenging. Nevertheless, the timing and amounts transacted strongly indicate a coordinated effort.
Bubblemaps also identified two additional clusters, linked via a specific wallet, that procured 10% of the DADDY supply, valued at $16 million, before Tate initiated his promotional campaign. Expressing apprehension, the firm warned that any potential sales from these clusters and Tate’s unreleased tokens, constituting 40% of the total supply, could adversely impact the token’s liquidity.
In response to the allegations, Andrew Tate reassured the public by declaring his commitment to holding and burning the tokens in his possession, vowing never to engage in selling activities. He emphasized his dedication to a long-term investment strategy, citing “diamond hands” as his guiding principle.
Prior to the DADDY coin controversy, Bubblemaps had previously implicated Iggy Azalea in comparable activities related to the MOTHER coin project. The investigation revealed that insiders allegedly acquired 20% of the MOTHER token supply during its launch phase, subsequently selling tokens worth $2 million. The focus was on a specific wallet that purchased an extensive amount of MOTHER tokens and distributed them across several other wallets. Significant profits were generated through the selling of these tokens, with remaining holdings valued at around $400,000.
Further transfers and sales from affiliated wallets resulted in collective earnings of approximately $800,000, marking a substantial financial gain for the insiders involved. As a consequence, the market capitalization of Mother Iggy (MOTHER) token experienced a decline from its peak value, and its trading price also witnessed a notable decrease over the past 24 hours.
Community Reactions and Controversies
The revelations of alleged insider trading in the meme coin projects of Andrew Tate and Iggy Azalea have sparked debates within the cryptocurrency community. While some individuals view these incidents as part of a typical “good insider launch,” others challenge the notion of fairness in such projects, suggesting that irregularities like these are par for the course in the realm of meme coins.
The emergence of insider trading allegations in the DADDY and MOTHER coin projects underscores the importance of transparency and ethical practices in the cryptocurrency market. As regulators and industry participants continue to scrutinize such activities, the need for accountability and integrity remains paramount to foster trust and confidence among investors and stakeholders.
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