Most memecoins endorsed by controversial social media figure Andrew Tate have lost 99% of their value, raising concerns of potential insider trading.
Tate jumped on the Solana memecoin bandwagon on June 7, endorsing over 10 tokens, which are known for having no intrinsic value.
However, most of these tokens have lost around 99% of their value shortly after Tate’s endorsement, according to an Oct. 19 X post by Bubblemaps, which stated:
“Andrew Tate first bought $GER (Germany Token) […] A cluster held 30% of the supply, and the price dropped 99% in two months.”
GER token clusters. Source: Bubblemaps
Despite lacking utility, memecoins are known for their extreme price volatility, with some traders profiting significantly. On Oct. 20, a savvy crypto trader made over $9 million profit in three days after making a 3,000-fold return on his investment into the Solana-based Nomogram (GNON) token.
GER/SOL, 1-day, all-time chart. Source: Bubblemaps
Tate is among several celebrities — including 50 Cent, Caitlyn Jenner and Iggy Azalea — who have promoted Solana-based tokens, many of which have since lost significant value.
Related: Odds of Ethereum price rally to $3K increase, but a few red flags remain
Bizarre Tate post admits to crypto market manipulation
The Roost (ROOST) token was among the memecoins endorsed by the former kickboxing world champion through numerous social media posts and videos showcasing merchandise related to the cryptocurrency.
However, the price started crashing shortly after Tate’s promotional posts, according to an Oct. 19 video investigation published by Coffeezilla. In the video, Coffeezilla states:
“Roost is now down over 90%. Roost’s treasury wallet got hacked, so the community literally got scammed. And to make it worse, the guy who got hacked was anonymous.”
ROOST chart from Coffeezilla’s video. Source: YouTube
Hours after Coffeezilla shared his investigation, Tate shared a bizarre X post suggesting that he has the ability to single-handedly manipulate cryptocurrency prices:
“Having the power to randomly pump any coin on the chart is super fun.”
Andrew Tate, Oct. 19 social post. Source: Andrew Tate
Most other cryptocurrencies endorsed by Tate have fallen over 90% in value, including Fuck Tristan (FTRISTAN), TopG (TOPG), RNT (RNT) and Daddy Tate (DADDY).
Tate brothers memecoin promotion. Source: Andrew Tate
Tate’s Daddy memecoin catalyzed widespread insider selling allegations in June. Yet, Tate’s token surpassed Iggy Azalea’s Mother Iggy (MOTHER) token in terms of market capitalization on June 13.
Related: Can liquid staking tokens depeg due to market volatility?
Celebrity memecoins: a net negative for crypto adoption
Beyond Tate, other well-known celebrities have also launched cryptocurrencies — most of which crashed within weeks from launch — eroding mainstream trust in the crypto space.
Over 30 celebrity-endorsed tokens launched in June on Solana have seen prices fall by no less than 73.23%.
An X post by cryptocurrency analyst Slorg revealed the devastating performance of these celeb coins, noting that most of these cryptocurrencies shed 99% of their value:
“Exactly half are down over 99%, with 7 others being down more than 90%. Let me remind you this is only about a month into their lifespan.”
UFC contender Khamzat Chimaev’s Smash (SMASH) token was also hit by insider allegations after it was revealed that up to 78% of the token’s supply was bought by team and developer-related wallets.
Within the first week of launching, the majority of celebrity-backed memecoins have fallen by at least 66%, including the Caitlin Jenner (JENNER), Timeless Davido (DAVIDO) and Rich The Kid (RICH) tokens.
Magazine: Fake Rabby Wallet scam linked to Dubai crypto CEO and many more victims
Comments (No)