Popular YouTuber MrBeast reportedly made over $10 million by promoting small-cap crypto tokens, according to an investigation by on-chain crypto sleuth SomaXBT.
The investigation, posted on X (formerly Twitter), revealed that MrBeast participated in Initial DEX Offerings (IDOs) for several low-cap tokens, promoting them before quickly selling his holdings. The report highlights a concerning trend of influencers profiting from crypto promotions while the value of these tokens plummets everyday investors.
MrBeast’s Crypto promotions and sell-offs
The investigation revealed that MrBeast had invested in several crypto projects in 2021, including Polychain Monsters (PMON), Splyt (SHOPX), Virtue Poker (VPP), and Jigstack (STAK). In these cases, the YouTuber received large allocations of tokens at launch, promoted the projects on social media, and then sold off his holdings after they gained initial attention. Most of these tokens have since lost over 90% of their value, while MrBeast and other participating influencers made substantial profits.
Infographics Showing MrBeast Crypto Trades
One notable example is MrBeast’s involvement with the token SUPER, the native asset of SuperfarmDAO, now known as Superverse. According to on-chain data, MrBeast invested $100,000 into the project and received 1 million SUPER tokens. After promoting the project online, he sold his allocation in a series of transactions, netting him approximately 1,900 ETH, equivalent to $3.7 million. In addition, MrBeast received more SUPER tokens through a vesting contract over the following months, eventually earning $9 million from his involvement. The token has since dropped 75% from its peak value.
Other influencers involved
MrBeast was not the only well-known figure promoting these low-cap tokens. Other influencers, including Lark Davis and KSI, were also named in the investigation as participants in similar projects. Like MrBeast, they also made significant profits while the tokens lost most of their value. The period of these activities peaked in 2021, a time when the cryptocurrency market saw a surge in interest and investment, particularly around IDOs and low-cap tokens.
Skepticism around influencer-promoted tokens grows
The revelations about MrBeast and other influencers have increased skepticism around the role of social media personalities in promoting cryptocurrencies. A 2023 study noted that while influencer posts can generate short-term price gains, they often lead to more significant long-term declines in value. Despite the high risks associated with these investments, influencers continue to promote lesser-known tokens, attracting interest from retail investors.
On-chain investigators like ZachXBT have been vocal in exposing these practices, calling out influencers for what they see as misleading promotions. Some crypto communities support these efforts, believing that transparency is necessary to protect investors. However, concerns have been raised about the potential risks of doing wallet addresses, as some fear it could lead to theft or physical harm.
The crypto community is increasingly wary of influencers promoting tokens that often lose significant value after their initial hype. With more investigations underway, influencers are increasingly pressured to be more transparent about their financial interests in the projects they promote.