Coffeezilla has shared a deep dive into the alleged cryptocurrency-based scandals of MrBeast and according to the YouTuber: “It sounds horrible, it looks horrible, it is horrible”.
James Stephen “Jimmy” Donaldson, better known by his online alias MrBeast, has long enjoyed his status as one of the most beloved content creators of all time, breaking records by becoming the first YouTube channel to garner more than 300 million subscribers. Things have taken a turn for the YouTuber in recent months, however, due to a series of scandals.
His partnership with Logan Paul and KSI to create Lunchly has come under fire for containing mold, allegations that his company culture led to the mistreatment of minors forced a response, and he has been accused of engaging in ‘pump and dump’ crypto schemes.
Fellow content creator Coffeezilla has done an extensive investigation of the crypto scheme allegations and calls his findings “wrong, stupid, and unethical”. According to Coffeezilla, the actions uncovered may even be illegal but only if it can be proven that MrBeast was directly involved.
Coffeezilla began by outlining a suspected instance of “insider trading” in which MrBeast supposedly made large returns from the sale of Polychain Monsters (PMON) and JIGSTACK (STACK). The sale of these coins by MrBeast was alleged to be based on insider information regarding business partner KSI’s promotion of the two entities.
MrBeast made large returns on both but according to Coffeezilla’s investigation “there’s simply no evidence provided” or “concrete proof” that MrBeast engaged in insider trading in these instances. “I’m going to stick with what we can prove happened,” the YouTuber qualified.
MrBeast and SuperVerse
SuperVerse (formerly SuperFarm) is the crypto project that MrBeast is alleged to have made the most amount of money from, with profits of over $10 million based on a presale purchase of $100,000. According to Coffeezilla, these profits were the result of MrBeast using his brand to promote the coin and then selling it off.
This was done via a series of tweets referencing SuperVerse following the purchase of a “huge stake” in the coin. As evidence, Coffeezilla cites leaked communications between MrBeast and the founder of SuperVerse and a crypto wallet seemingly linked to the YouTuber.
“We have leaked screenshots showing Mr Beast telling Super’s founder that he can do $100K,” Coffeezilla stated. “We have a wallet that both investigations traced to Mr Beast sending $100,000 to the presale wallet. We have the same wallet getting millions of these Super tokens in a period of unlocks which were almost all sold aggressively.”
When Coffeezilla reached out to MrBeast for clarification, he received this response:
Coffeezilla received no response to any follow-up questions.
The YouTuber elaborated that “Jimmy (MrBeast) denies doing any of the trading or managing the trading and blames it all on ‘a fund’” which appears to be managed by an investor named Jason A. Williams who MrBeast follows on Twitter. However, the YouTuber reiterated that he found it “difficult to assume that MrBeast has no idea what’s going on”.
“We know MrBeast set up the presale, we know MrBeast made the tweets, but we don’t know whether it was Jason doing the trading of Super or if he was doing the trading,” he explained. “Did Mr Beast know about it? Did Jason know about the tweet? These are the questions that matter.”
MrBeast and Ethernity Chain
Unlike SuperVerse, MrBeast has no traceable involvement in the purchasing of a token called Ethernity ($ERN). When Coffeezilla spoke to the founder of the token, they responded “We were speaking to his fund manager” and identified MrBeast’s fund as Rocket Fund.
In 2021, Rocket Fund partnered with Ethernity in a presale and also purchased “over $100,000” more of the tokens. Mr Beast also engaged in similar promotion of Ethernity by tweeting about the token.
After Rocket Fund partnered with Ethernity in presale, MrBeast’s name and logo were also listed on the Partners and Investors section of the company’s website. The primary issue for Coffeezilla however was the links between MrBeast’s fundraising effort #TeamSeas which hosted a two-month-long NFT charity auction in which Ethernity could be used to purchase and donate.
One month into this charity auction, the Rocket Fund began selling off Ethernity when the token’s price was partially inflated by the effort. “It sounds horrible, it looks horrible, it is horrible,” Coffeezilla claimed.
“I don’t think this was a master plan to pump a coin with a charity auction,” he qualified. “Do I also think it doesn’t matter because, regardless of your intentions, selling tokens within a month of your two-month charity auction is wrong, stupid, and unethical? Yes, yes I do.
“I don’t think this was a pre-planned scheme but regardless of intentions, if you’re the charity guy, you support a charity, it flops while your fund makes millions of dollars in profits because it’s selling the same $ERN token that people can bid on the charity with, that just is awful and you should feel awful about it.”
MrBeast and XCAD
$XCAD is another instance, according to Coffeezilla, in which MrBeast’s involvement drove anticipation for the crypto token. In fairness, unlike SuperVerse and Ethernity, MrBeast did not use Twitter to promote this particular token.
“The only reason we know MrBeast was in the presale is that there were several articles about it, bragging about the fact,” Coffeezilla clarified. “Once again MrBeast’s name was used to promote this instead of the fund (Rocket Fund) itself.”
Coffeezilla asserts that a brand like MrBeast being tied to a particular token has a “major impact” on its sales. The YouTuber draws connections to Rocket Fund’s habit of using MrBeast’s name or brand to promote a particular token and then sell out early making huge profits while leaving the founders of these ventures high and dry.
$XCAD Founder Oliver Bell spoke to Coffeezilla directly and confirmed “There was heavy dumping from a wallet linked to MrBeast’s team”. Bell stopped short of blaming MrBeast directly and instead focused on Rocket Fund.
“I don’t think Jimmy has a bad heart or is a bad person, I think he has a genuine interest in the crypto space, but I think the team that handles his crypto is completely clueless,” Bell asserted. Coffeezilla had a different take.
XCADNetworkMrBeast is not listed as an official partner of $XCAD.
“I don’t think that Jimmy’s crypto team is clueless. I think they saw an opportunity to make millions of dollars with MrBeast’s valuable brand and they took it, and they did make millions of dollars,” he alleged. “Along the way, they did some things that were shady. Whether or not you think they were also illegal is probably going to be shaped by our unanswered questions.”
These questions primarily center around whether or not MrBeast knows about the actions of his team and has a say in them. According to Coffeezilla, he has been unable to find definitive proof that points in one direction or another.
“A big part of the problem is that the guy at the center of this story (MrBeast) cannot or will not give more than a heavily ‘lawyered’ statement through a spokesman that’s a crisis management consultant,” the YouTuber concluded. He reiterated that how serious people thin this matter is was ultimately ‘up to them to decide’.