Infamous YouTuber Logan Paul has found himself in yet another controversy and this time it's related to meme coin Dink Doink (DINK). The cryptocurrency is centered around a joke, but fans are calling out Paul and the Dink Doink team for a potential pump and dump scheme.
Is the Logan Paul crypto scam legit or did Paul push an unlucky coin? Here's what we know so far.
What is Dink Doink?
According to the website, Dink Doink is a cartoon crypto that was created in part by social media influencers. It's a "decentralized IP" or a coin based on a media franchise. Investors receive a NFT (non-fungible token) every time the media franchise releases an episode.
Fans accuse Logan Paul of pumping DINK in marketing scheme
Influencers with large followings are able to sway people to make purchasing decisions, which is why the influencer advertising market is so strong.
Paul initially tweeted, "This is the dumbest, most ridiculous s***coin I’ve ever seen. And that’s why I’m all in." He also published other media pumping up the coin. Some crypto traders found him disingenuous after finding out that he played a part in Dink Doink's creation, which suggests he holds a stake in its success. DINK has steadily decreased in value since its launch, which led people to believe that the move was a pump and dump scheme.
One Twitter user shared a document showing that whales (people who own a large amount of a coin) own at least 80 percent of DINK in total.
Altcoin scams are a problem beyond DINK
Pump and dump schemes in altcoins are common. U.S. traders have lost more than $80 million in cryptocurrency scams in the nine months ending in June, which amounts to a 1,000 percent increase in these types of scams compared to 2019. The median amount lost in these scams was $1,900, which means a lot of people were impacted.
The data from the FTC suggests that the organization might attempt to make more efforts to quell alt-coin viability in the future.
Given the recent prevalence of crypto scams, a marketing scheme from Paul wouldn't be a surprise.
According to Dink Doink, Logan Paul is innocent of any crypto scam.
Dink Doink CEO Jake Broido also owns Persona Music. He's familiar with the influencer crowd associated with Logan Paul. In a video, Broido said, "Is it a scam? No. Flat out, no. Logan hasn't sold a single coin. Neither has the dev team. We're here to make a funny meme coin. It's a f***ing cartoon. And if you don't get the joke, you are the joke."
As for whether or not Broido's claims are legit, it's tough to say. The level of whale ownership in DINK is sketchy enough as it is, and following Paul's lead on anything—investing included—is a decision you'll have to live with on your own.