Andrew Tate and Iggy Azalea Accused of Insider Trading in Meme Coin Promotions
Blockchain analytics platform Bubblemaps has alleged insider trading activity in the meme coin projects promoted by Andrew Tate and Iggy Azalea.
The allegations, detailed in a June 12 thread, revealed that at the launch of the DADDY coin, insiders had allegedly acquired 30% of the token supply, amounting to over $45 million distributed across 21 wallets.
DADDY Insider Trading Allegations
On June 9, a transaction moved 40% of the DADDY supply to Andrew Tate’s wallet shortly before he began promoting the coin on his social media platforms.
On-chain data from Bubblemaps reveals that 11 wallets, funded through Binance with nearly identical amounts simultaneously, purchased 20% of DADDY on June 9, prior to the project’s official announcement. These wallets now collectively hold approximately 19% of the total supply, valued at $30 million.
3/ Andrew Tate stuck to his word and didn’t sell any tokens.
But here’s the catch:
11 wallets, funded through Binance with nearly identical amounts at the same time, bought 20% of $DADDY on June 9th, before @DaddyTateCTO‘s first tweet. pic.twitter.com/OGNXBmqvVb
— Bubblemaps (@bubblemaps) June 12, 2024
The firm suggested that the linked wallets potentially belong to the same group, although they admitted, “Since they [the wallets] are funded through Binance, we can’t 100% confirm they belong to the same group. However, the timing and amounts strongly suggest they do.”
Bubblemaps also uncovered two additional clusters, linked via a particular wallet, that acquired 10% of the supply, valued at $16 million, before Tate began his promotional efforts.
7/ Additionally, Andrew Tate hasn’t burned the 40% he’s holding, meaning he could start selling at any moment.
This is currently worth $64M.
You can check this kind of launch at https://t.co/knB3DehRor
— Bubblemaps (@bubblemaps) June 12, 2024
The firm cautioned that any sales from the clusters and Tate’s unburned tokens, which make up 40% of the total supply, could impact the coin’s liquidity.
Tate responded to the allegations asserting, “I will never sell what was sent to my wallet, I will only burn and buy. Forever. Diamond hands.”
According to DEXScreener, Daddy Tate (DADDY) coin has seen a surge in its market capitalization, reaching $259 million, and is currently trading at $0.25, a triple-digit increase over the past 24 hours.
MOTHER Insider Trading Allegations
Bubblemaps also previously implicated Iggy Azalea in similar activities concerning the MOTHER coin. The firm alleged that insiders purchased 20% of the MOTHER supply at launch and subsequently sold $2 million worth of tokens.
We found huge insider activity on $MOTHER
Insiders bought 20% of the supply at launch, before Iggy Azaela (@IGGYAZALEA) made the announcement, and already dumped $2M.
A thread
↓ pic.twitter.com/tQFHt1yZfO
— Bubblemaps (@bubblemaps) May 29, 2024
↓ Their investigation focused on a wallet that bought 109 trillion MOTHER tokens before distributing them across seven other ones. Most of these funds have been sold, resulting in a profit of $1.4 million, with the remaining valued at approximately $400,000 as of the latest update. This wallet also transferred funds to other ones that collectively earned around $800,000 by selling about 8% of the token’s supply.
The Mother Iggy (MOTHER) token’s market cap has decreased from its peak of $267.58 million on June 6 to around $158 million. Its price has similarly dropped from a high of $0.27 to its current trading price of $0.148, a decrease of 6.45% over the last 24 hours.
Meanwhile, these allegations have caused debate within the crypto community. Some consider the incident as an example of a “good insider launch,” while others argue that “there is no such thing as a fair launch in meme coins,” implying that such occurrences are normal.
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