Logan Paul, an American boxer and YouTuber, is once again facing criticism after he was accused of misleading fans about crypto investments. Paul gained over $100,000 by promoting tokens he didn’t acknowledge he owned.
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YouTubers Profit from Misleading Fans
BBC reported on Tuesday that social media celebrity Logan Paul, who promoted crypto projects in 2021 online, allegedly misled fans. The investigation revealed connections between Paul and wallets profiting from tokens he posted online.
According to the article, Paul will be endorsing an Elon Musk memecoin, Elongate on his Maverick Club subscription-only club in May 2021. The YouTuber said in the video: “Elongate made me rich. Elongate, baby, let’s go. Elongate token.”
Logan Paul promotes Elongate memecoin in 2021. Source: Reddit
The price of the memecoin soared by 6,00% after the namedrop but crashed quickly when investors began to sell their profits a few hours afterwards. Even if Paul’s intentions cannot be proved, the report notes that his mention seems to have affected Elongate’s price.
BBC analysed an anonymous crypto-wallet to see if it was connected to the Internet star. The investigation revealed that the wallet had received funds in February 2021 from Paul’s wallet to begin trading cryptocurrencies.
The wallet allegedly “was later paid funds from Maverick Club and held Elongate when Paul promoted it on 10 May 2021.” Moreover it traded another token with a Musk theme after the YouTuber announced on X it was going to. “to the moon”
The wallet bought around $160,000 of memecoin shortly before Paul’s posting. It then sold the majority of its holdings twelve hours later when the price of cryptocurrency spiked. This trade appears to have brought in around $120,000 for the wallet.
Logan Paul’s Long History Of Crypto Controversy
These aren’t Paul’s first crypto-related accusations. In the last few years, Paul has been involved with a lawsuit involving his failed CryptoZoo Project. Investors lost around $4 million. Time Magazine published similar findings in 2023 to BBC about Dink Doink and another anonymous wallet.
This investigation has found that “cozy relationship” Between the unknown wallet, and Paul’s address. The wallet “was getting fed a lot of the funds that went into that address,” The anonymous wallet sent $100,000 to Paul after selling Din Doink tokens.
The YouTuber’s lawyer informed the BBC that this transfer was not related to the sale of the memecoin. He did not deny Paul’s links to the anonymous Wallet, and he acknowledged that Paul had traded the token for a profit of only $17,000.
Paul, despite addressing Dink Doink’s accusations, has reportedly refused to comment for the BBC’s primary investigation. This refusal lasted several months. According to the report the social media personality eventually agreed to meet with the British media outlet, inviting them into his gym in Puerto Rico.
The BBC team, however, was greeted by a Logan Paul-like character and verbally abused by his friends. His lawyer then sent a warning letter on behalf the YouTuber “of the possible consequences if we published our findings.”
Paul’s collaboration with YouTubers KSI, Mr. Beast has recently been accused of scams related to crypto.
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The weekly chart shows that Bitcoin (BTC), currently trading at $93,666, is currently the highest price. Source: TradingView BTCUSDT Featured Image by Unsplash.com Chart by TradingView.com
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