MrBeast promotes low-cap tokens, earns $10m: crypto watchdog

MrBeast, a YouTube entertainer with over 320 million followers, has come under scrutiny after a chain investigation suggested he may have made millions from low-cost cryptocurrencies.

According to the anonymous crypto detective known as SomaXBT, MrBeast, whose real name is Jimmy Donaldson, has made over $10 million from backing Initial DEX Offerings (IDOs) for projects like Polychain Monsters (PMON) and Virtue Poker (VPP).

SomXBT says this is an ethical red flag and likens it to a pump-and-dump plan. Promoting tokens to millions of followers and selling them after their value increases causes losses to regular investors.

“This is questionable stuff they are all doing in the crypto market,” SomXBT said, referring to social media influencers on X. “[If] “They did it in the stock market, the SEC was after them.”

SomaXBT uses on-chain data to increase transparency and hold the crypto community accountable. His work, evident in his posts on October 11, highlights the risks of influencer-backed token promotions.

MrBeast’s relationship with SUPER

According to the investigation, Donaldson’s involvement spans several projects, including SuperFarm ($SUPER), Polychain Monsters ($PMON), SPLYT ($SHOPX), STAK and Virtue Poker ($VPP).

The analysis is based on wallet activity tagged as ‘Mr.’ Monster in Arkham Intelligence’.

3/ Here is proof that you only invested $100k in SuperFarmDAO. In a screenshot @elliotrades During the livestream, he accidentally revealed a DM conversation with MrBeast about a $100k investment. This was then matched with wallet activity where MrBeast sent $100k to a new wallet. pic.twitter.com/yxfW0aZcuJ

— SomaXBT (@somaxbt) October 11, 2024

One of the most significant interventions was claimed to be SuperFarmDAO’s $SUPER token. SomaXBT claims Donaldson invested $100,000 and then received $1 million in SUPER tokens.

The investigation claims that these tokens were later sold for approximately 1,900 ETH, meaning they were worth approximately $3.7 million at the time.

Additional earned tokens reportedly earned the YouTube star another $5.5 million. This allegedly increased his total earnings from SUPER$ to nearly $9 million.

Similar patterns were observed in other tokens. SomaXBT claimed that in the case of PMON$ a $25,000 investment resulted in a profit of $1.7 million.

The $SHOPX token reportedly earned $765,000 from an initial $25,000 investment. The investigation also indicates $1.25 million in profits from $STAK tokens.

SomaXBT notes that many of these projects have faced major devaluations, with some dropping over 90% from their peak prices. Some projects were rebranded or reversed after major losses.

SomaXBT draws parallels with regulated markets, suggesting that such activity on the exchange would likely attract the attention of regulators.

Source: SomaXBT

SomaXBT also reminded the community of MrBeast’s support for previously non-fungible tokens, or NFTs. A screenshot of a tweet shows Donaldson making it clear that she was referring to Gary Vee and took the blame for some of her Vee friends.

Crypto.news sent an email to MrBeast requesting an interview but did not receive a response.