Bubblemaps, a blockchain analytics platform, has recently brought to light some concerning allegations regarding insider trading in meme coin projects associated with individuals like Andrew Tate and Iggy Azalea. The claims, outlined in a detailed thread on June 12, suggest that insiders had acquired a significant portion of the token supplies of projects like DADDY and MOTHER before public launches, raising questions about the fairness and legitimacy of these endeavors.
The DADDY Coin Drama
At the launch of the DADDY coin, it was revealed that insiders had allegedly secured 30% of the token supply, equivalent to over $45 million, spread across 21 wallets. What raised eyebrows even further was a transaction on June 9, where 40% of the DADDY supply was moved to Andrew Tate’s wallet right before he started promoting the coin on his social media platforms. Bubblemaps’ on-chain data also uncovered 11 wallets, funded through Binance, that simultaneously purchased 20% of DADDY on the same day, prior to the project’s official announcement. These wallets now collectively hold approximately 19% of the total supply, valued at $30 million.
In response to these allegations, Andrew Tate claimed that he would never sell the tokens in his wallet, only choosing to burn and buy more. However, concerns were raised about the potential impact of any sales from these linked wallets and Tate’s holdings on the coin’s liquidity. Despite the controversy, DADDY Tate (DADDY) coin experienced a surge in market capitalization, hitting $259 million, with a trading price of $0.25, marking a triple-digit increase in just 24 hours.
Bubblemaps had previously implicated Iggy Azalea in similar activities surrounding the MOTHER coin. The firm alleged that insiders acquired 20% of the token supply at launch and later sold $2 million worth of tokens. A particular wallet was identified to have bought a significant amount of MOTHER tokens before distributing them across multiple other wallets, resulting in substantial profits. This activity led to a decrease in the MOTHER Iggy (MOTHER) token’s market cap from its peak of $267.58 million to around $158 million, along with a drop in price from $0.27 to $0.148.
These allegations have sparked discussions within the crypto community, with varying opinions on the matter. Some view these incidents as examples of a “good insider launch,” while others argue that there is no such thing as a fair launch in meme coins, suggesting that such practices are commonplace in the industry. The debate surrounding insider trading and market manipulation in the crypto world continues to raise questions about transparency and ethics in this rapidly evolving landscape.
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