- Daddy Tate (DADDY) token surged to a market cap of $300 million.
- The token’s value increased by 218% within 24 hours.
- Bubblemaps reported suspicious wallet activities before the price spike.
- Andrew Tate denies plans to exploit his holdings and pledges beneficial actions.
- Market manipulation discussions intensify in the crypto community.
Daddy Tate (DADDY), a memecoin endorsed by the former professional kickboxer Andrew Tate, recently experienced a significant rise.
Within a single day, the token’s value leaped from 10 cents to 30 cents, reflecting a substantial 218% increase. This price surge propelled its market capitalization to an impressive $300 million.
Concerns soon followed this meteoric rise.
Bubblemaps, a crypto analytics firm, identified suspicious buying patterns involving a select group of wallets. These wallets collectively acquired 30% of DADDY’s total supply just days before Andrew Tate began promoting the token on X, the social media platform formerly known as Twitter.
Suspicious Wallet Activity
Bubblemaps’ report highlighted that an early buying spree on June 9 saw 11 wallets purchasing 20% of DADDY’s supply.
Each of these transactions was prefunded through nearly identical deposits from Binance. This concentration of token ownership raised red flags about potential market manipulation.
Such concentrated ownership poses risks to the token’s stability. Any significant sales from these major holders could drastically impact DADDY’s liquidity and price, potentially leading to a market crash.
Conversations around market manipulation and insider trading have since dominated the crypto community.
Andrew Tate’s Response
Facing these allegations, Andrew Tate took to X to address concerns. He asserted that he would neither sell nor exploit his holdings.
Instead, he expressed intentions to engage in actions beneficial to the token’s ecosystem. This includes plans to burn or buy more tokens, aiming to support the token’s long-term value.
Tate reassured his followers:
“Im the $DADDY.
200Mil market cap.
Im going to burn all of this shit live on Rumble.
My last burn was 37million dollars.
But now I refuse to burn less than 100million dollars.
No brokey burns.
Top G.
Built different.”
Despite Tate’s assurances, the debate over potential foul play continues. Market participants remain cautious about the implications of such concentrated ownership and promotional practices by high-profile influencers.
Celebrity-Backed Tokens: A Mixed Bag
The situation with Daddy Tate stands in stark contrast to other celebrity-endorsed tokens. For instance, Mother Iggy (MOTHER), promoted by rapper Iggy Azalea, also faced early insider buying allegations.
Unlike DADDY, MOTHER’s market cap has nearly halved from its peak, now standing at $153 million.
These cases highlight the unpredictable nature of memecoins and the risks associated with celebrity endorsements in the crypto space. High-profile influencers can significantly influence token prices, but this influence can also lead to volatility and regulatory scrutiny.
The Road Ahead
As the cryptocurrency market evolves, the activities of high-profile influencers like Andrew Tate are likely to remain under the microscope.
Regulatory bodies and investors alike will keep a close watch on such developments, aiming to safeguard market integrity and investor interests.
The rise of memecoins like Daddy Tate underscores the volatile and speculative nature of digital assets. While they offer opportunities for substantial gains, they also come with significant risks. Traders and enthusiasts must stay informed and exercise caution when navigating this dynamic landscape.
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