Jake Paul earned more than $2 million with cryptocurrency pumps and dump schemes promotions. Jake Paul’s crypto ventures have all been abandoned or have lost more than 90% of their value.
Celebrities hawking crypto assets is nothing new in the market, but a recent video reveals that Jake Paul is on another level.
Jake Paul earned more than $2 million by crypto promotions
YouTuber and professional boxer Jake Paul made millions pushing useless tokens to his fans, according to a video uploaded by Coffeezilla on YouTube.
Coffeezilla said in the video that Paul had been paid to promote many cryptocurrencies, including Safemoon, Yummy Coin, Milf token, and others. However, he does not identify these promos as sponsored advertisements, creating the impression that they are personal endorsements.
The boxer’s method of operation is to create a separate wallet for each token he wishes to promote. The token is then transferred to this wallet, which is most likely done by the token’s developer. He then praises the token on social media, generally through his Twitter account.
The coins from the new unknown wallet are quickly transferred to a new wallet, this time on OpenSea with the name “PRBLM CHILD.” That turns out to be Jake Paul’s alias, indicating that he is most likely the owner of the wallet.
Coffeezilla, on the other hand, dispels any doubts regarding Paul’s ownership. According to the video, Jake Paul’s official wallet sent the first transaction to PRBLM CHILD wallet. As a result, he’s linked to it.
Jake Paul generated nearly $2 million from this pump and dump operations. All of the ventures he advocated, on the other hand, have lost over 90% of their value or have been abandoned.
Already, a class action lawsuit has been filed against the boxer for advertising Safemoon to those who have invested in the token. However, the fact that he didn’t disclose that all of these tweets were paid advertisements could land him in even more legal hot water.
The Federal Trade Commission (FTC) may investigate, and the Securities and Exchange Commission (SEC) may be interested if some of the tokens are defined as unregistered securities.
Jake Paul isn’t the first or only celebrity to support dodgy cryptocurrency projects without disclosing his or her ties to them.
Kim Kardashian marketed Ethereum Max to her over 200 million Instagram followers last year, in what U.K. regulators called the largest crypto marketing ever. She neglected to mention that this was a paid promotion.
Steven Seagal, a well-known Hollywood actor, was fined over $300,000 by the Securities and Exchange Commission for failing to disclose that he was being paid to promote an initial coin offering (ICO).
Because of the deluge of celebrity endorsements for crypto projects, Binance launched a campaign in which celebrities advised their fans to do their own research before investing in any coin.
Also read: Monero and Zcash are surging ahead of Vice President Biden’s crypto directive
