TLDR
- Andrew Tate, a controversial social media personality, recently endorsed a Solana-based meme coin called DADDY, leading to a surge of over 450% in its price within 24 hours.
- The DADDY token’s market cap surpassed $275 million after Tate’s promotion.
- Crypto analytics firm Bubblemaps alleged insider trading activity, claiming that around 30% of the token’s supply was acquired by a small group of wallets before Tate’s endorsement.
- Tate claims he will not sell the 40% of the DADDY token supply that was sent to his wallet, and he intends to only “burn and buy” the tokens.
- The DADDY token’s surge in value surpassed the market cap of rapper Iggy Azalea’s MOTHER token, which also faced accusations of insider trading activity.
Andrew Tate, the controversial social media personality and former kickboxer, recently caused a stir in the cryptocurrency world by endorsing a Solana-based meme coin called DADDY.
His promotion of the token on Twitter led to a massive surge in its value, with the price skyrocketing over 450% within a 24-hour period.
The DADDY token, which was launched on June 9, saw a relatively modest increase in value until Tate began actively promoting the project on June 13.
After his tweets about the token, its market cap soared past $275 million, as the price reached $0.28.
Ive been telling you all for years.
Im built different. https://t.co/ZMek1Fu97H
— Andrew Tate (@Cobratate) June 12, 2024
However, this rapid rise in value has been accompanied by allegations of insider trading activity from crypto analytics firm Bubblemaps.
According to their analysis, a small group of wallets, funded through Binance, acquired around 30% of the total DADDY token supply shortly after its launch and before Tate’s endorsement.
Bubblemaps claims that 11 wallets purchased nearly 20% of the supply, with these tokens now being worth approximately $30 million at the current price. Another cluster of wallets holds an additional 10% of the supply, amounting to around $30 million in value.
The firm stated that the timing and amounts of these purchases “strongly suggest” that they all come from the same group.
The analytics firm warned that if one of these wallets decides to sell their holdings, it could significantly impact the token’s liquidity and potentially cause a price crash.
Despite these allegations, Andrew Tate has maintained that he will not sell the 40% of the DADDY token supply that was sent to his wallet.
In response to concerns, he tweeted, “Real Gs know that their money is safe with a real G. I will never sell what was sent to my wallet, I will only burn and buy.”
Not everyone is convinced by Tate’s assurances. Pseudonymous crypto influencer Ansem accused Tate of owning the wallets with suspicious activity, to which Tate responded with a dismissive “Shut up hoe.”
The DADDY token’s surge in value has also surpassed that of rapper Iggy Azalea’s MOTHER token, which faced similar accusations of insider trading activity.
Bubblemaps had previously reported that insiders had bought 20% of the MOTHER token supply at launch before Azalea first promoted it online.
4/ Since they are funded through Binance, we can't 100% confirm they belong to the same group. However, the timing and amounts strongly suggest they do.
These wallets hold ~19% of the total supply, worth $30M at the current price.
One wallet selling could crash the liquidity
— Bubblemaps (@bubblemaps) June 12, 2024
While the allegations of insider trading surrounding the DADDY token are concerning, it is important to note that they have not been conclusively proven.
Nevertheless, the situation serves as a reminder of the potential risks and uncertainties involved in the cryptocurrency market, particularly when it comes to meme coins and tokens promoted by influential figures.
