Allegations Mount Against Influencer Over Crypto Promotions
Logan Paul, the YouTube star with over 23 million followers, faces renewed scrutiny over his cryptocurrency ventures. Critics claim he profited from promoting risky investments to fans without disclosing his financial interests.
Mysterious Wallet Links to Paul
New evidence suggests Paul’s crypto activities go beyond simple endorsements. In 2021, an anonymous crypto wallet linked to his public wallet traded coins he promoted. Shortly after, this wallet allegedly profited by $120,000 from trading.
Paul’s public promotion of coins like Elongate led to dramatic price surges, often followed by crashes. The influencer denies wrongdoing but refuses to clarify the wallet’s connection.
Promoting Meme Coins for Profit?
Paul frequently promoted “meme coins,” cryptocurrencies inspired by internet jokes with little intrinsic value. For instance, after he hyped the coin Elongate, its price skyrocketed by 6,000% before plummeting hours later.
Experts argue Paul’s influence likely caused the spike. Will Gotsegen, a tech journalist, says, “Social media drives the crypto market. When influencers like Logan Paul promote coins, their followers buy in.”
Transactions show Paul-owned wallets or linked wallets traded tokens shortly before and after his public endorsements.
Deceptive Stunts Raise Eyebrows
When approached by the BBC for an interview, Paul initially agreed. However, the meeting in Puerto Rico turned into a spectacle. A Paul lookalike greeted the crew, while a staged crowd shouted insults. Moments later, Paul’s legal team sent warnings against publishing findings.
The BBC’s investigation revealed Paul’s involvement in meme coins like Dink Doink. A wallet tied to him earned $100,000 from trading it, though his team claims the profit came from unrelated sources.
CryptoZoo: A Failed Venture?
In 2021, Paul launched CryptoZoo, a supposed blockchain game involving NFTs and a proprietary currency, Zoo Token. Fans bought in, believing promises of unique NFT animals that could generate passive income.
The project attracted $18.5 million in investments. However, technical issues plagued the launch. Features didn’t work as promised, leaving many investors angry. The value of Zoo Tokens and NFTs collapsed.
One fan, Rueben Tauk, says he lost £33,000. “It felt like betrayal,” he said. “Paul’s promises didn’t match reality.”
At least 130 investors are suing Paul, claiming $4.2 million in damages. Allegations include “stealth launches” where Paul’s team secretly acquired Zoo Tokens before publicly promoting them.
Other Celebrities Face Similar Scrutiny
Paul isn’t the first celebrity to face backlash for crypto promotions. Kim Kardashian was fined $1.26 million in 2022 for endorsing EthereumMax without disclosing her financial stake.
Gary Gensler, SEC Chair, emphasizes that public figures must reveal if they profit from promotions. “Transparency is key,” he states.
Fans Turn Against Paul
Paul’s popularity remains strong, bolstered by ventures like boxing, wrestling, and the Prime energy drink. However, his crypto dealings have left many questioning his integrity.
Disillusioned fans like Rueben feel betrayed. “When someone you trust misleads you, their words lose all value,” he said.
Fame and Responsibility
Logan Paul’s cryptocurrency controversies highlight the risks of celebrity-driven financial ventures. While he denies wrongdoing, lawsuits and investigations suggest a deeper ethical issue.
As crypto markets remain volatile, the line between influence and exploitation becomes increasingly blurred. For many fans, the damage is already done, tarnishing the trust they once placed in their idol.
