Logan Paul, a popular American YouTuber and brother to Jake Paul, the boxer who just defeated Mike Tyson has been accused of using his massive audience to profit off shady crypto deals.
According to a BBC report, Logan Paul who has a staggering 23 million YouTube subscribers promoted certain investments while hiding his stake in them. He reportedly influenced investment prices and allegedly sold tokens to collect profit.
New Evidence reveals Logan Paul made $120,000 from Elongate Memecoin
The BBC said it has uncovered new evidence that Logan Paul benefited from promoting a meme coin which rugged. BBC findings fingered a wallet linked to the Known Logan Paul wallet which acquired $160,000 of Elongate memecoin an hour before Logan Paul promoted the memecoin via a tweet.
After Logan Paul’s promotional tweet, New buyers rushed in driving the price of the token only for the fingered wallet to sell all its tokens after 12 hours making a profit of $120,000.
A Time magazine report collaborated with the BBC report spotting a similar pattern with another cryptocurrency and wallet.
Logan Paul increased the suspicion around his involvement with a statement to his online community. The YouTuber exclaimed that Elongate the memecoin made him rich in a video shared with his closed Maverick club fan community.
“Elongate made me rich. Elon baby let’s go!” Logan exclaimed
Efforts to hold Logan Paul accountable for the alleged crime have proved abortive with the Youtuber avoiding the BBC for months.
The internet sensation finally agreed to an interview in Puerto Rico but a Look alike showed up instead and the BBC team was harassed at the scene.
A legal notice from Logan Paul’s attorney was later forwarded to the BBC warning them against publishing their findings.
Celebrity Memecoin Scams
Logan Paul’s stint with Elongate memecoin joins a long list of celebrity-related memecoin scams which often take the same pattern. A celebrity promotes a memecoin he or she secretly has a stake in only to sell all his tokens as soon as the price of the memecoin surges following new buyers responding to the promotion by the Celebrity.
Davido and Sabinus mid-year launched their memecoins which have gone on to lose virtually 90% of their value a few days after launch. Davido has been accused of shilling shitcoins repeatedly exploiting his audience for quick profits.
On the foreign scene, celebrities like Iggy Azalea, Caitlyn Jenner, and Andrew Tate all launched memecoins that have lost significant value. The credibility of celebrity-backed memecoins is at an all-time low following the unpleasant experience of traders who backed the above tokens.
What to Know
- A rug pull refers to a scam where a cryptocurrency or NFT developer promotes a project to attract investor funding, only to shut down or disappear, taking investor assets with them.
- Logan Paul also has a rug pull case hanging over his head following his failed NFT project CryptoZoo.