Key Takeaways
- Logan Paul is a social media influencer who is currently facing allegations over his cryptocurrency dealings.
- Paul Tweeted about a particular crypto coin. An anonymous wallet liked with his public wallet made a profit of $120,000.
- Paul abandoned the interview of BBC on the issue and send a lawyers letter on the consequences of publishing findings agains him.
- Paul stated that Elongate coin made him rich and the price of Elongate rose by over 6000% to its all time high for few hours and the price got crashed.
Logan Paul is a social media influencer who faces allegations over his cryptocurrency dealings. As per the allegations he may have made huge profits by misleading fans. BBC reports that there is evidence that suggests his investment promotions are released without revealing his financial interest in those assets.
He owns a YouTube channel with more than 23 million followers. This influence would have caused the prices of the investments to spike. These suggest that he could have earned profits from the sale of his tokens. Paul is also a co-founder of a failed crypto project called CryptoZoo. He faces a million-dollar lawsuit over this failed project. But he denied any wrongdoing.
BBC also found out that earlier in 2021 Paul Tweeted about a particular crypto coin. Before the tweet, an anonymous crypto wallet that has a close connection to his public wallet had traded the coin. And the anonymous wallet made a profit of $120,000.
Crypto wallets holds users keys to their accounts and allows people transfer and spend their cryptocurrency. This observations are followed by a report of Time magazine on similar activity that involves different cryptocurency and annonymous wallets.
Paul was silent about this issue for several months. Then he appeared to react to the issue. He agreed for conducting an interview to react to the issue. The venue was fixed at his gym in Puerto Rico. When the crew arrived the venue a lookalike of Logan Paul appeared in the place of youtuber. He was folowed by a crowd that abuse BBC. Then the crew abandoned the interview.
Shortly after abandoning the interview BBC received a laweys letter on the behalf of Paul.The letter warned the team about the consequences that my occur if the findings agains paul is published by BBC.
Logan Paul: The Social Media Sensation
Logan Paul became a world renowned celebrity by uploading short video clips. He started his social media presence in a now closed platform called Vine. Then he become a youtube content creator. Paul started creating videos around crypto investments about three years ago. Crypto is a digital currency that works without the support of a central bank or regulatory authority.
Paul started promoting a series of extremely high risk crypto tokens called “meme coins” in the year 2021. These coins are created after getting inspired from internet jokes or memes and supported by online communities.These coins are not created for any other purpose other than trading.Threre is no intrinsic asset associated with the coin so the value can fluctuate heavily and even reach zero.
Paul praised the Elon Musk themed meme coin known as Elongate. He released a video that states that Elongate coin made him rich. He circulated this video to his subscription fan club called Maverick Club. After this video gets released the price of Elongate rose by over 6000% to its allime high for few hours and the price got crashed. The international behind the release of this video by paul is unknown.However it seems to be affected the price surge of the token Elongate.
According to the tech journalist Will Gotsegen, crypto price fluctuations are driven to some extend by social media and influencers.A celebrity influencer like Paul buys and recommend a crypto to his followers will cause a fluctuation in the market price.
The crypto wallets analysed by BBC was found connections with Paul.The transactions carried out by crypto wallets are accessible by everyone.The identity of the owner can be made anonymous.The wallets in which the details of the owner is made public then the wallet is called public wallet.The wallet received funds in February 2021 is from a public wallet owned by Logan Paul.Then the wallet started trading on crypto.
Logan Paul and Crypto Zoo
Logan Paul is now facing a lawsuit on his venture Crypto Zoo. This was marketed as online game that uses NFT (Non Fungible Token) instead of cards for playing. To play CryptoZoo first the player needs to buy a cryptocurrency known as Zoo Token. The token can be utilised to purchase NFT “eggs”. The eggs will be hatching “animals” that will later breed to birth the “hybrid animals”.
These hybrid animals will have names like penguin-shark or Panda-fin. According to Paul these can earn participants monetary benefits. CryptoZoo has accumulated around $18.5 million iunvestment. Paul has also navigated to boxing and wrestling in the recently as well as launching Prima, a crink company. This product was also a great success due to its viral launch.
