The newly launched Mother Iggy ($MOTHER) memecoin by rapper Iggy Azalea has been rocked by insider trading allegations just days after its May 28 launch on the Solana blockchain.
Blockchain analytics firm Bubblemaps has called out significant insider trading activity related to the wallet “JEEt”. This insider, identified as “invicible” on Solana-based memecoin marketplace, pump.fun, allegedly received over 127.5 million MOTHER tokens (over 10% of the 1 billion total supply) from the deployer account immediately after launch.
Bubblemaps claimed the insider then dispersed the tokens across seven wallets before selling 89 million coins, about 10% of the supply, on May 29. On-chain data shows the “JEEt” wallet distributed the 127.5 million tokens to multiple wallets, with one wallet selling 20 million MOTHER via the Raydium liquidity pool for a $1.4 million profit. The insider is estimated to still hold around $400,000 in unrealized gains.
The analytics platform claimed insiders acquired over 20% of the supply at launch before Azalea promoted it, already dumping $2 million worth of tokens before the allegations came to light.
Though the investigation is ongoing, the insider trading allegations represent a significant credibility hit for MOTHER and other celebrities launching cryptocurrencies.
Crypto stakeholders have began to raise concerns about market manipulation and the integrity of celebrity crypto projects. Notably, celebrities like Caitlyn Jenner and Soulja Boy recently announced ventures in the memecoin space.
Retail and non-crypto investors have been advised to be very cautious and to study the investment thoroughly before putting money into any cryptocurrency investment—especially those promoted by high-profile celebrities.
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