Mr Beast Accused of Profiting Off Low Cap Cryptos

If there is anything crypto lovers are always doing, it’s searching for the next big thing. We have seen tokens like Bitcoin and Dogecoin rise to the top of the asset market and every other day, a new crypto emerges.

Any of the thousands of tokens in the market could go on to make investors a fortune, so everyone is on the lookout.

The biggest priority among crypto investors considering which crypto to buy now is finding the crypto with 1000x potential. This refers to any new crypto that shows the potential of making a 100,000% increase.

In the process of finding new coins to invest in, some investors tend to take the word of their favorite creators and make decisions based on this. Now, top YouTuber Mr Beast has been accused of taking advantage of this trust and profiting off his followers.

The Accusations

This new round of accusations comes from SomaXBT, a popular crypto sleuth. According to his investigations, Mr Beast had been an early investor in projects like Polychain Monsters (PMON) and Virtue Poker (VPP). What’s more, he heavily encouraged his followers to invest in these tokens’ Initial DEX Offerings (IDOs).

The Accusations

An IDO refers to the listing of a new token on a Decentralized Exchange (DEX) for the first time. The point of an IDO is to raise money from the public and if there is a positive response, the price of the asset will go up.

Considering the fact that Mr Beast has several successful businesses and tens of millions of followers, his endorsement of these projects inevitably helped them do well in the market.

What wasn’t discussed as much at the time was that he was an early investor in these projects. This means that when they saw a spike in value, he was able to make a profit. In fact, SomaXBT estimates that he made over $10 million in profit from these three tokens.

One project, the $SUPER token, saw a $100,000 investment from the YouTuber. In return, he got 1 million units, which he went on to sell for 1,900 ETH, which was the equivalent of about $3.7 million at the time.

This is before we consider the vested tokens, which brought in about $5.5 million. In one project alone, he netted close to $9 million.

As for the followers he led to invest, it was a different case. A large percentage of new crypto projects fail and SomaXBT says that some of them have seen as much as 90% of their value lost. And unlike Mr Beast, these investors don’t already have millions to fall back on.

The Complexities of Influencer Crypto Promotions

Influencer promotions are a complicated issue, especially when it comes to crypto. On the one hand, as SomaXBT concedes, Mr Beast hasn’t done anything wrong per se.

Influencers have to provide certain disclaimers when promoting products to their audience, such as their compensation for doing so. In the case of investments, users are always told that there is a risk involved.

In the past, celebrities have even been sued and fined for prompting crypto or NFT projects that were dodgy or for not disclosing their financial interest in such projects. These days, it is less common.

But even with this, some feel conflicted about celebrities like Mr Beast profiting from early investment in an asset while their followers lose money.

Some have even suggested that he herded them to a pump-and-dump scheme. But regardless of opinion, crypto investors have to navigate a tricky landscape of choosing which tokens to buy.

The law might change to further regulate actions like crypto promotions by YouTubers but for now, things remain uncertain.

Author Profile

Christy Bella: Blogger by Passion | Contributor to many Business Blogs in the United Kingdom | Fascinated to Write Blogs in Business & Startup Niches |