MrBeast Faces Accusations of $10 Million Earnings Through Low-Cap Token Pump-and-Dump Schemes

YouTube star Jimmy Donaldson, popularly known as MrBeast, is facing serious accusations of earning over $10 million from promoting low-cap cryptocurrency projects and allegedly orchestrating pump-and-dump schemes. This controversy has emerged following an investigation by crypto sleuth SomaXBT, who revealed MrBeast's involvement in Initial DEX Offerings (IDOs) and promotions that led to significant token price surges, followed by massive sell-offs that left retail investors in the lurch.

The Allegations

The investigation, which SomaXBT made public on October 11, 2024, traced MrBeast's activities using on-chain data through Arkham Intelligence, linking him to multiple projects such as SuperFarm ($SUPER), Polychain Monsters ($PMON), and SPLYT ($SHOPX). According to the data, MrBeast made substantial profits by selling tokens after promoting them, contributing to the token price collapsing once his investments were sold off.

One of the most significant cases involved the SuperFarm token ($SUPER), where MrBeast allegedly invested $100,000 and later sold his tokens, earning about $9 million in profit after several trades. The token’s price surged following MrBeast’s promotion but plummeted after he dumped his holdings.

How Pump-and-Dump Schemes Work

Pump-and-dump schemes are common in the cryptocurrency space, where influential figures or celebrities promote low-cap tokens, causing a price surge as their followers invest. Once the price reaches a peak, these individuals sell off their holdings, causing a rapid price decline, leaving ordinary investors with significant losses. In MrBeast’s case, tokens like SuperFarm, Polychain Monsters, and others saw sharp declines of up to 90% after his sell-offs.

Impact on Retail Investors

Retail investors who bought these tokens following MrBeast’s endorsements suffered massive losses when the token prices plummeted. For example, Polychain Monsters dropped over 90% in value after MrBeast’s alleged sell-off, raising ethical questions about the responsibility of influencers in the crypto space.

Broader Implications

The accusations against MrBeast mirror earlier controversies involving influencers in the crypto market, such as Andrew Tate and Iggy Azalea, who were also caught promoting low-cap tokens that later collapsed in value. These cases highlight the growing issue of market manipulation by celebrities and the impact on retail investors.