A meme coin related to a celebrity is accused of insider trading worth $2 million

The controversy revolves around a meme coin related to celebrities and suspicions that the team has secretly traded and benefited from the project.

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Inside the Iggy Azalea meme coin controversy

In his Telegram group, he Chia an address and encouraged members to deposit Solana (SOL) to participate in the presale for a new token called IGGY. Initially, he opened the presale for only 100 wallets but increased the limit to 700 and then to 1,000. Wallets participating in this presale have raised more than 380,000 USD. However, the investors claim that they are yet to receive the tokens.

During their debut, IGGY showed an impressive performance. According to data from DEX Screener, it quickly reached a market Capital of around $3 million. However, at the time of writing, IGGY is currently trading at $0.00003907, with its market Capital down to $39,000.

Following Arora's announcement, Azalea announced on her X (Twitter) account that she launched her own meme coin, Mother Iggy (MOTHER), with a contract address. She clarified that she independently launched MOTHER, urging her Watcher not to believe false claims about her involvement with Arora.

Don't believe the bullshit like fake screenshots and all the rest. I know you're all smarter than that. No one works with me. I can't say it enough. Incorrect. Sahil, honey, take your L and go.

Azalea said in her post.

Compared to IGGY, MOTHER had a stronger debut. It reached a market Capital of $18.2 million. DEX Screener data reveals that MOTHER is currently trading at $0.008633, with its market Capital halved to $9.2 million.

Azalea admitted during an X Space discussion that no one “really introduced” her to the cryptocurrency industry. She claims her brother, Mathias 'Matt' Kelly, helped her launch the Token.

Matt just loves crypto and honestly, [he] doesn't shut up about any kind of technology or new thing. Meme coins involve a lot of sh*tposting and memeing and things that I really like, like that kind of culture of the internet.

she explained.

Furthermore, Azalea has outlined its plans to build trust and integrity within the crypto community. She aims to distinguish herself from other controversial celebrity tokens.

Every time they start, I just want to burn a part of me because I'm a celebrity in the space, and I know I'll be hated for being here. So I would burn some every time someone came in who was a famous person and it looked like it was obviously a rug. I'll just burn up.

she affirmed.

Insider trading allegations have affected Iggy Azalea's meme coin

Despite Azalea's efforts, blockchain data provider Bubblemaps discovered “highly valuable internal activity” in the MOTHER meme coin. Insiders bought 20% of the supply at launch before Azalea announced it and have since dumped $2 million worth of tokens.

According to Bubblemaps, wallet address JEEt3D1dZynWcgEcpPCNP2FvSbydHJiyfurU6QKVDVMH purchased 109 trillion MOTHER, equivalent to 10% of the supply. The wallet then Chia those tokens into 7 wallets.

Of these, 89 trillion Token were sold. Realized profit and loss: 1.4 million USD. Unrealized profit and loss: 400,000 USD.

Bubblemaps note .

The wallet sent SOL to high-yield wallets that brought significant profits to MOTHER. These include DbT9xdKUD7jghNDmvhfmiCxenhusbAMzR5PKdx2qk4Cx, 3nsX9zGLyk9hVskckHAznMtcKxm4UCN51RXsht5CmX2c and 4YozmZV6mmNCBZavNZRHj9jD7mD46X2CHHhasYXVtGkJ. These wallets reportedly made around $800,000 by selling 8% of the token supply.

In addition to the discoveries made by Bubblemaps, when Coffeezilla asked Arora about the recent allegations made by Jenner, Azalea, and Rich the Kid, Arora confessed that the entire situation was “all staged.” He went on to accuse Rich the Kid of exploiting him for publicity by making false accusations of hacking and fraud.

Another meme coin comes from a Nigerian singer

In a related development, American-Nigerian singer Davido launched a meme coin named after himself. on-chain tracking platform Lookonchain reports that Davido created the token on Wednesday using pump.fun. He received 7.5 SOL (about 1,275 USD) as initial Capital and spent 7 SOL (1,190 USD) to buy 203 million DAVIDO, equal to 20.3% of the total supply.

Hours after creating and promoting the meme coin on his social media, Davido withdrew 121.88 million DAVIDO for 2,791 SOL, generating approximately 474,400 USD. This transaction led to speculation that Davido created the token solely for pump and dump purposes.

To deal with the potential reality of celebrity coins, Wale Moca, a researcher at Azuki, examined cryptocurrency projects owned and promoted by celebrities in the past. According to Moca, all have failed, with most being scams. This model raises concerns about the sustainability and integrity of such joint ventures.

These projects often fail because the individuals behind them don't care. Either they receive an amount of money for promoting and posting videos or their team coordinates sales. In most cases, there is no real interest or planning for the project. [...] I'd be surprised if any of the celebrities promoting them even know what's going on.

Moca explained .

Regulators have previously taken action against misleading cryptocurrency promotions. In October 2022, the US Securities and Exchange Commission (SEC) charged Kim Kardashian for promoting EthereumMAX (EMAX) without disclosing her financial compensation. Kardashian resolved the charges by paying a $1.26 million fine and cooperating with the ongoing investigation.