Crypto Pump and Dumps EXPOSED: Are Celebrities Scamming Their Fans?

Is your favorite celeb secretly promoting a crypto scam?

Celebrities and influencers are increasingly being accused of participating in crypto pump-and-dump schemes. These schemes involve artificially inflating the prices of tokens to earn profits by selling their stakes, leaving their followers with significant losses.

Here are some names that are being tossed around.

Lil Pump and Moneybagg Yo: Naming the ‘Crypto Culprits’

Popular celebrities Lil Pump and Moneybagg Yo are among those implicated in these fraudulent activities. Both have promoted numerous tokens in a misleading manner, only to sell off their holdings after boosting their prices.

Lil Pump introduced his own crypto, $PumpCoin, while Moneybagg Yo launched $SpeakCoin. According to a study by ZachXBT, both celebrities sold their massive stakes in these tokens shortly after promoting them, leading to a sharp decline in their values and substantial losses for investors.

Internet Personalities Join the Fray

Notable internet personalities, including famous YouTuber KSI, have also been involved in these schemes. ZachXBT’s investigation revealed that KSI endorsed tokens such as XCAD and Ethernity Chain (ERN) on his social media accounts, only to dump them later, pocketing nearly $1.2 million in the process.

Despite KSI attributing his actions to poor investment decisions rather than malice, many, including Coffeezilla, remain skeptical, viewing his behavior as a clear pump-and-dump strategy.

The Mechanics of Pump-and-Dump Schemes

Pump-and-dump strategies typically involve influencers who market certain currencies through their extensive followings. They often use social media to make exaggerated claims about the future value of these tokens, creating artificial hype. This hype prompts followers to invest, driving up the price.

Once the price peaks, the influencers sell off their tokens, causing the price to plummet and leaving their followers with nearly worthless coins. This fraudulent activity not only leads to significant financial losses for individual investors but also erodes trust in cryptocurrencies.

Where’s the Accountability?

The growing prevalence of these schemes has sparked calls for greater accountability among celebrities and social media personalities with large followings. Regulatory authorities are urged to monitor and prevent such manipulative practices, protecting vulnerable investors.

When it comes to advice from celebs, maybe just stick to their fashion choices instead? Let’s hear your thoughts.