Crypto Influencer Jaypeg Accused of Dumping Tokens in Uptober Memecoin Scam

Jaypeg is under fire for allegedly selling promotional tokens meant for advertising, sparking debates about influencer ethics in the memecoin market.

Crypto influencer Jaypeg has been accused of scamming the Uptober memecoin project by selling promotional tokens he was supposed to advertise. The Uptober team alleges that Jaypeg agreed to promote their token in exchange for 2% of the total supply, valued at approximately $2,200. However, they claim he sold the tokens shortly after receiving them without fulfilling his promotional commitments.

According to the Uptober team, the deal was made through a Telegram chat, where Jaypeg shared a wallet address to receive the tokens. But after receiving the coins, Jaypeg allegedly deleted the wallet address from the conversation, claiming it was random and not his own. The team later found that the tokens had been sold, leading them to suspect that Jaypeg had dumped his allocation instead of promoting the token.

Blockchain investigator ZackXBT was enlisted to help verify the claims, and his investigation provided contradicting evidence. ZackXBT discovered that the wallet used to receive the Uptober tokens was linked to other blockchain activities connected to Jaypeg. Specifically, the same wallet, beginning with “8jpz1p,” had been used to claim airdrops from the Solana Saga smartphone, an activity Jaypeg referenced in a video on January 10, 2024.

Despite the evidence, Jaypeg maintains his innocence. He insists the wallet address was random, which is why he deleted it from the chat, and accused the Uptober team of attempting to blackmail him. To address the allegations, Jaypeg publicly apologized and donated $2,000 to The Turtle Foundation, a charity focused on conservation efforts. However, the gesture has done little to calm the accusations against him.

The incident has drawn attention to the role of influencers in cryptocurrency promotion, particularly in the booming memecoin market. Memecoins have surged in popularity in recent months, and the current market cycle has seen an influx of new token launches, particularly on networks like Solana. Data from Step Finance shows that over 633,000 new tokens have been launched on the Solana network since mid-September.

Jaypeg’s controversy also sheds light on a broader issue: the potential risks of influencer-backed projects in the crypto space. Crypto influencers often leverage their large followings to promote new projects, sometimes to the detriment of unsuspecting investors. Recent studies show that some influencers exploit social-psychological factors to manipulate their followers’ desire for inclusion and status.

In the aftermath of the allegations, Jaypeg has hidden his social media profiles, sparking further doubts about his credibility. Both the Uptober team and ZackXBT have urged the community to exercise caution when trusting influencers, warning that incidents like this highlight the need for greater transparency in crypto promotions.

photo source / Blockonome