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MrBeast, the YouTube sensation renowned for his philanthropy and grandiose stunts, has amassed over 300 million followers. However, recent investigations have unveiled a darker facet of his online persona. Allegations suggest that in 2021, MrBeast exploited his vast influence in the Web3 space to pocket over $23 million through dubious crypto activities, including insider trading and pump-and-dump schemes.
A comprehensive analysis by Arkham Intelligence and further insights from Loock.io have shed light on MrBeast’s alleged involvement in several crypto projects. The pattern is consistent: substantial investments, strategic promotions, and timely sell-offs, all leading to significant profits.
MrBeast’s Crypto Ventures
Blockchain analysis shows that MrBeast employed a calculated approach across multiple projects. He reportedly invested in tokens early, leveraged his vast online presence to generate excitement around these projects, and then dumped his holdings after their prices inflated. These actions often left unsuspecting retail investors at a loss. Let’s dive into the specifics of some of the projects he allegedly targeted.
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1. SuperVerse ($SUPER) – Profit: $9 Million
In early 2021, MrBeast reportedly invested $100,000 into SuperVerse, securing himself a hefty 1 million $SUPER tokens. Soon after, he took to social media, engaging with SuperVerse’s posts and following its accounts, which signaled to his millions of followers that this was a project worth paying attention to.
As retail investors bought into the hype, $SUPER’s value surged. Within a month, MrBeast allegedly sold his entire $SUPER stake for 1,900 ETH, cashing out at the peak and earning millions. But the scheme didn’t end there. His wallet received another 6.9 million $SUPER tokens in a vesting arrangement the following year, which he once again sold on the open market. By the time he was finished, he had earned a total profit of roughly $9 million from SuperVerse, demonstrating a calculated use of social influence and timely sales to capitalize on others’ investments.
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2. ShopX Labs ($SHOPX) – Profit: $765,000
For his next venture, MrBeast took a smaller position with a $25,000 investment in ShopX Labs. This gave him 607,000 $SHOPX tokens, a large quantity relative to his initial investment. ShopX Labs experienced a promotional blitz from various crypto influencers, each touting the token’s potential and driving its value upwards. MrBeast was among the notable figures engaging with the project, which only added to the social buzz.
When the $SHOPX token reached a higher value due to the hype, MrBeast allegedly sold off an initial batch of 120,000 tokens for 147 ETH, followed by a larger sale of another 487,000 tokens. These sales brought his total profit from ShopX Labs to around $765,000. At present, he retains 177,000 $SHOPX tokens, worth less than $700, underscoring the volatility and fleeting value of such influencer-backed projects, often leaving retail investors with steep losses after the influencers exit.
3. Polychain Monsters ($PMON) – Profit: $1.7 Million
With Polychain Monsters, MrBeast reportedly took an even more aggressive approach. After investing $25,000, he received 25,000 $PMON tokens. Not long after, Moonrock Capital, a high-profile venture capital firm, joined the promotion, sending the token’s price soaring. Moonrock’s campaign was designed to create as much buzz as possible, with MrBeast leveraging his reach to add further credibility to the project.
Within a week, he allegedly sold his $PMON holdings for 685 ETH, an impressive profit given the short holding period. But there was more to come. Only a month later, he received another 68,700 $PMON tokens from the team, which he again sold on the open market, earning an additional $385,000. His total profit from Polychain Monsters reached around $1.7 million, illustrating the speed and scale of his involvement in crypto pump-and-dumps.
4. Ethernity Chain ($ERN) – Profit: $4.6 Million
MrBeast’s involvement with Ethernity Chain was different from other projects. Unlike previous schemes, he officially partnered with the project, securing a sizable number of tokens during the ERN pre-sale. While he didn’t immediately sell all of his tokens, he gradually offloaded most of them as the token’s value climbed during the 2021 crypto market bull run.
To date, he retains 54,500 $ERN tokens, now worth about $100,000 – far below their peak value. Nonetheless, his gradual sell-off approach reportedly netted him over $4.6 million from Ethernity Chain, showing how even small, steady sales can yield massive profits when done at a token’s high point.
5. Jigstack ($STAK) – Profit: $1.31 Million
Though MrBeast didn’t publicly promote Jigstack, he was nonetheless allocated 46.4 million $STAK tokens – a substantial amount. Without promoting the token directly, he reportedly sold one-third of these tokens immediately upon launch and the rest 1.5 months later. His profit from Jigstack reached around $1.31 million, suggesting that he could profit even from projects he wasn’t actively promoting, as long as his timing was right.
The Mechanics of Crypto Pump-and-Dump Schemes
At the core of these allegations is the pump-and-dump scheme. This involves acquiring large quantities of a token, promoting it to inflate its price, and then selling off holdings at the peak, leaving other investors with devalued assets.
In MrBeast’s case, his substantial investments, coupled with strategic promotions, allegedly led to price surges. His subsequent sell-offs resulted in significant profits, while late investors faced losses.
Ethical Implications for Influencers
The revelations about MrBeast’s alleged activities raise ethical concerns regarding influencer involvement in financial markets. Influencers wield significant power, and their endorsements can sway market dynamics. The lack of transparency and potential for manipulation underscore the need for ethical guidelines and regulatory oversight.
Lessons for Investors
For retail investors, this serves as a cautionary tale. Blindly following influencer endorsements without due diligence can lead to financial losses. It’s imperative to research and understand the fundamentals of any investment, rather than relying solely on influencer promotions.
The allegations against MrBeast highlight the codependency between influencers and crypto projects. As the crypto market grows bigger, the need for transparency, ethical conduct, and regulatory oversight becomes increasingly evident.
How Much Money Does MrBeast Have?
As of June 2024, Jimmy Donaldson, widely known as MrBeast, has an estimated net worth of $1 billion. His expansive empire generated $223 million in gross revenue in 2023 and is projected to exceed $700 million in 2024. This substantial income stems from his multiple YouTube channels, which collectively boast over 400 million subscribers, as well as ventures like MrBeast Burger and Feastables. Despite his significant earnings, MrBeast is renowned for reinvesting much of his revenue into producing high-quality content and supporting philanthropic initiatives. At the time of writing, MrBeast’s channel hovers at 325 million subscribers. That’s 325,000,000!
Disclaimer: It is important to note that MrBeast is doing a lot of positive stuff too, and by saying this we mean Beast Philanthropy. It is a great charitable foundation that financially supports important causes and communities around the globe.
