Jake Paul makes more than $2m shilling bad projects

Influencer Jake Paul has been caught promoting cryptocurrency scams and making more than $2m from his endeavours.

While an active lawsuit is on-going against Jake Paul, many have taken to the blockchain to find out the truth about his dodgy promotions.

Cryptocurrency is not an easy thing to understand and many new users look to their favorite influencers for help on what to invest in. The majority of these influencers are not financial experts and their advice has been getting them into hot water.

YouTuber Coffeezilla focuses on cryptocurrency scams, and recently made a video which looked to unearth just how much influencers have been making from these scams.

It was his investigations that found Paul had made in excess of $2m promoting projects which have either been ‘pump and dump’ tokens or flat out scams.

Blockchain is unique due to its transparency. Anyone can open a block explorer and track any transaction to find out where it came from.

The hardest part of doing this research is the lack of account names. It can be difficult to figure out exactly who owns a specific wallet. Luckily, these influencers did not put in a lot of effort and used the same wallet for multiple scams.

This means it can be quite easy to follow funds coming from developers’ wallets directly before a Tweet or video is made on the project. Matching the various promoted projects with the incoming funds makes it clear who owns the wallet.

Paul has promoted many projects including Yummy token, MILF token and Safe Moon. Most of these projects dropped 90% in value after an influencer recommended them.

The wallet transactions show that the influencers have sold all the tokens they receive for the promotion at the peak of the hype while allowing their fans to hold a token which rapidly declines in value.

These scams have cost his followers a lot of money. Many of the projects promoted have crashed dramatically in price and caused huge financial loss. Despite this being damaging to their own fans, influencers pushed many cryptocurrency scams over 2021 to their audience.

Cryptocurrency enthusiasts have urged new users to avoid influencers and YouTubers for financial advice. Too often these videos promoting tokens do not disclose the fact they are being paid to promote a project. Without disclosure, viewers can falsely believe a project is legitimate because someone they trust is promoting it.

Source

Updated: 03/14/2022 — 15:00