- Daddy Tate token surges to $300M cap after a 218% increase in just 24 hours.
- Bubblemaps flags insider trading with 30% of DADDY bought pre-promotion.
- Despite market scrutiny, Tate promises to burn or buy tokens, not sell.
The cryptocurrency sphere witnessed a remarkable development as Daddy Tate (DADDY), a memecoin endorsed by the former professional kickboxer Andrew Tate, soared to a market capitalization of $300 million. This spike occurred after the token’s value jumped from 10 cents to 30 cents within a 24-hour period, reflecting a substantial 218% increase.
Insider Activity Raises Concerns
Concerns of insider trading emerged alongside the token’s rise. Bubblemaps, a crypto analytics firm, reported a suspicious pattern involving a select group of wallets. These wallets acquired 30% of DADDY’s total supply just days before Tate began promoting the token on social media platform X.
According to Bubblemaps, this early buying spree involved 11 wallets purchasing 20% of the supply on June 9, actions prefunded by nearly identical transactions from Binance.
This revelation has sparked discussions about market manipulation, as such concentrated ownership could pose risks to the token’s stability. Bubblemaps warned that sales from any of these major holders could significantly impact DADDQ’s liquidity and price.
Comparison with Other Celebrity Tokens
The scenario around Daddy Tate starkly contrasts with the performance of other celebrity-endorsed tokens, such as Mother Iggy (MOTHER) by rapper Iggy Azalea. While MOTHER also faced early insider buying allegations, its market cap has almost halved from its peak, now standing at $153 million.
In response to the allegations, Andrew Tate asserted on X that he would neither sell nor exploit his holdings but would rather engage in actions beneficial to the token’s ecosystem, like burning or buying more tokens.
As the crypto market continues to evolve, the activities of high-profile influencers are likely to remain a focal point of regulatory scrutiny and investor caution. This trend underscores the volatile and often unpredictable nature of memecoins in the digital asset space.
