Blockchain researcher ZachXBT is urging traders to exercise caution as a new celebrity-backed meme coin featuring rapper Soulja Boy gains traction on social media.
Jesse Pollak, co-founder of Coinbase’s Base network, gained new attention over the weekend after publishing what he purported to be a receipt showing a $1,500 Ether (ETH) purchase he put into the token in a post on X.
“Why give SouljaBoy a platform to scam new people?” pseudonymous blockchain researcher ZachXBT responded, referring to an April 2023 research thread detailing six tokens the rapper had endorsed. All of them ended up being pulled under the rug or abandoned shortly after approval.
In cryptocurrency slang, a lag pull is a scam in which developers abandon a project and token holders withdraw their invested capital, often within days of the token’s launch.
ZachXBT’s thread cited tokens such as RapDoge, Orion, The Life Token, Flokinomics, and SafeMars, describing them as Soulja Boy’s “most notorious villains” and claiming the rapper left reward details in promotional posts.
sauce: Zack XBT
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The rapper also created at least nine non-fungible token (NFT) collections during 2021, most of which have since been deleted, removed from OpenSea, or completely failed to deliver their promised “utility,” according to blockchain researchers.
ZachXBT estimates that Soulja Boy made a total of $730,000 in promotions during the 2021 bull market cycle, according to a leaked price list shared by researchers, at which time Soulja Boy was charging $12,000 per Instagram and $10,000 per X promotion.
The new Soulja Boy (SOULJABOY) token failed to garner much attention. Since its launch on Friday, the token has reached a market capitalization of $85,000 and has received investments from a total of 331 holders, according to data from the Base app.
SOULJABOY/USD, all-time chart. Source:base.app
Related: Cryptocurrency approaches ‘Netscape moment’ as industry approaches inflection point
Soulja Boy apologizes for ‘paid promotion’, says it was ‘years ago’
The rapper defended X, saying he had “learned a lot since then” and took full responsibility for his lack of due diligence.
“I had no idea that a fraudster named Sahil was involved or that he was paying me to promote his fraudulent activities.”
“At the time, I was doing paid promotions without understanding the crypto/NFT space as much as I do now,” the rapper added.
Source: Soulja boy
In February 2022, Soulja Boy and several other A-list celebrities were the subject of a class action lawsuit for allegedly participating in a pump-and-dump scheme related to Safe Moon Tokens.
According to the complaint, Safemoon and its subsidiaries imitated a real-life Ponzi scheme by misleading investors into purchasing Safemoon tokens under the pretense of unrealistic profits.
https://www.youtube.com/watch?v=jznCALGknIo
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