Andrew Tate’s DADDY coin bumps 209%: Is insider trading playing a part?

• Andrew Tate’s DADDY coin endorsement reflected celebrity impact on cryptocurrency markets.
• A firm flagged insider activities in DADDY and MOTHER coins.

After nearly a year of social media silence, former kickboxer and reality television star Andrew Tate re-emerged online with his own cryptocurrency, driving buzz among investors.

He initiated a donation drive, encouraging those who have profited from his promotions to contribute to social causes. 

DADDY coin on the rise

However, the real buzz on social media began when he announced his support for the Solana [SOL]-based Daddy Tate [DADDY] memecoin.

His new interest was sparked by Australian rapper Iggy Azalea, who recently launched her own Solana-based memecoin, Mother Iggy [MOTHER].

Taking to X (formerly Twitter), Tate remarked, 

“I heard about a coin called mother so now I’m supporting a coin called $DADDY to flip it for the patriarchy.” 

DADDY outshines MOTHER

Tate’s involvement with the DADDY memecoin has emerged as a rival to Azalea’s MOTHER. While Tate insists that he will not profit from the memecoin, Azalea has taken a more financial approach with her token.  

Tate’s promotion of Daddy Tate has resulted in a massive surge for the DADDY coin, which has risen by 209% in the past 24 hours, according to DEXScreener.

In contrast, MOTHER has experienced a modest increase of only 3.98% over the same period as per CoinMarketCap.

Insider activity suspected

Amidst the bullish surge of DADDY, blockchain analytics firm Bubblemaps has identified suspicious insider activities related to its launch.

According to their findings, insiders allegedly acquired 30% of the coin’s supply prior to Tate’s promotion. These early holders are now reportedly sitting on assets valued at over $45 million.  

Taking to X, Bubblemaps noted, 

Source: Bubblemaps/X

 Well, the story doesn’t end there. While Tate claimed he hadn’t sold any tokens, which Bubblemaps also verified, other questionable transactions have come to light.

Bubblemaps reported that 11 wallets, each funded with nearly identical amounts from Binance [BNB] at the same time, purchased 20% of DADDY on the 9th of June, prior to DaddyTateCTO’s first tweet. 

It’s important to note that DADDY isn’t the only coin caught up in insider activities. Recently, MOTHER also showed significant insider activity, with one insider selling about 10% of the coin’s total supply on the 29th of May. 

Observing this rising trend of insider activity, Bubblemaps issued a word of caution, and stated,

“More celebrity tokens will come, but remember that most of them end up worthless and are often plagued by insider trading.” 

Solana memecoins causing trouble?

In conclusion, a crucial question arises: Is the memecoin frenzy overshadowing established cryptocurrencies like Solana?

While these two memecoins surged in their daily charts, SOL struggled to surpass its resistance level at $159.86.

The bearish sentiment was further confirmed by the Relative Strength Index (RSI), which remained below the neutral level. 

Source: TradingView

In fact, despite the launch of numerous Solana-based memecoins, which were expected to boost the SOL network, the number of new addresses has declined.

According to data from The Block, new addresses on the Solana network dropped from 26.65 million in May to 11.09 million in June.

Source: The Block