Jimmy Donaldson, better known as MrBeast, a YouTube superstar with over 320 million followers, has been thrust into the spotlight not for his viral stunts, but for his involvement in the crypto space. According to a recent on-chain investigation by crypto sleuth SomaXBT, MrBeast may have pocketed over $10 million by promoting low-cap crypto tokens, a move raising eyebrows within the industry.
MrBeast’s Crypto Earnings Exposed
SomaXBT, an anonymous but reputable figure in the crypto community, revealed in an October 11 post that MrBeast earned millions by endorsing Initial DEX Offerings (IDOs) for crypto projects such as Polychain Monsters (PMON) and Virtue Poker (VPP).
The investigation suggests that Donaldson’s wallet, identified through Arkham Intelligence, profited significantly from these projects. The findings point to an estimated $10 million in earnings for the YouTube star.
Pump-and-Dump Allegations
SomaXBT claims that the practice resembles what’s often referred to as a pump-and-dump scheme. MrBeast, by promoting these tokens to his vast audience, could influence a surge in their value. Once the prices spiked, MrBeast allegedly sold off his holdings, leaving average investors facing significant losses. SomaXBT was vocal on social media, stating,Â
This is the shady stuff they’ve all done in the crypto market. If they had done this in the stock market, the SEC would be after them.
The allegation is a serious ethical concern. If accurate, it shows how influencers with large followings can manipulate the market, affecting the livelihoods of regular crypto investors.
SuperFarm ($SUPER) and Other Token Promotions
One of the most prominent cases flagged by SomaXBT involves Donaldson’s dealings with the SuperFarm DAO ($SUPER) token. The investigation suggests that MrBeast invested $100,000 in the project, receiving 1 million $SUPER tokens. SomaXBT alleges that MrBeast eventually sold these tokens for approximately 1,900 ETH, valued at $3.7 million at the time. Further vesting allegedly netted him another $5.5 million, bringing his total earnings from $SUPER to around $9 million.
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Similar allegations were made regarding other tokens. For example, SomaXBT pointed out that a $25,000 investment in Polychain Monsters ($PMON) reportedly yielded $1.7 million in profits. The $SHOPX token supposedly brought in $765,000 from a $25,000 investment, while earnings from the STAK token were estimated at $1.25 million.
Tokens Facing Major Devaluations
While MrBeast’s alleged profits were impressive, the investigation also highlighted the downfall of several of these projects. SomaXBT noted that many of the tokens MrBeast promoted have since faced major devaluations, with some seeing their prices plummet by over 90% from their peak. Some projects rebranded or pivoted in response to their losses.
Crypto’s Ethical Dilemma
SomaXBT’s investigation underscores the larger issue of influencer involvement in the crypto space. The investigator argued that such behavior would likely trigger regulatory scrutiny if it occurred in the stock market. He compared these actions to pump-and-dump schemes, where influential figures artificially inflate the price of assets before selling off their holdings for profit. In traditional markets, this is illegal and punishable by regulatory bodies like the SEC.
MrBeast’s NFT History Resurfaces
This isn’t the first time MrBeast’s crypto dealings have drawn attention. SomaXBT reminded the crypto community of MrBeast’s earlier foray into the world of non-fungible tokens (NFTs). A tweet from Donaldson showed his support for Gary Vee’s VeeFriends project, in which he publicly stated that he had “loaded up” on VeeFriends, another example of his involvement in speculative crypto investments.
What Lies Ahead?
As crypto markets remain largely unregulated, influencer-backed token promotions pose a growing risk to unsuspecting investors. The revelations from SomaXBT’s investigation serve as a cautionary tale for both regulators and traders, highlighting the importance of transparency and ethical practices in the rapidly evolving crypto space.
MrBeast’s team has yet to respond to the allegations, but with public scrutiny growing, it remains to be seen how this will impact his future involvement in crypto projects.