- KSI endorsed XCAD and ERN tokens, leading to market interest.
- He immediately sold off $850,000 in XCAD and $349K in ERN.
- Influencer accused of potential market manipulation.
In crypto, influencers wield significant power, capable of swaying markets with a single tweet. However, with great power comes great scrutiny, as not all use this power responsibly. Recently, the spotlight has turned to a YouTuber and influencer accused of promoting a crypto pump-and-dump scheme.
Olajide Olayinka Williams “JJ” Olatunji, better known as KSI, a British YouTuber, rapper, and boxer, has since denied allegations of a pump-and-dump scheme. He claimed he did not want to profit from his fans and was just “clueless” about crypto.
KSI Accused of Dumping Tokens
The KSI drama started on Wednesday, February 14, when a crypto investigator, ZachXBT, unearthed transactions indicating that the influencer dumped hundreds of thousands of tokens he promoted earlier.
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On March 2022, KSI tweeted about the XCAD token, promoting it to its followers and suggesting they “hodl.” A few days later, he sold off $850,000 worth of XCAD.
This was not the first time. For instance, in 2021, KSI posted he was bullish on Ethernity Chain (ERN) but sold $350,000 in ERN tokens just hours later.
As the story gained traction, prominent YouTube investigator Coffeezilla entered the fray. He engaged directly with the KSI, who defended his actions.
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“I put in 2 million of my own money and lost it all in the end. I made zero profit on crypto,” KSI asserts, framing himself as an inexperienced trader rather than a successful scammer.
He admitted to selling off part of his XCAD holdings in an attempt to capitalize on the Terra-Luna stablecoin. He now considers this decision a “major L,” claiming to lose $2.8 million of his own money when both Terra and Luna crashed to near zero.
Still, not everyone is buying the excuses. The evidence suggests that KSI sold crypto tokens just days or even hours after promoting them to his audience. Some may point out that KSI’s crypto losses do not excuse his shady gains on tokens such as XCAD or ERN.
What Are the Project KSI Supported?
The projects that KSI supported fall within his interests, especially the XCAD Network, which is all about letting YouTubers like himself monetize their audiences.
Specifically, the XCAD Network introduces a tokenization system where creators can issue their own personalized tokens on the platform. These tokens serve as a new medium of exchange, allowing fans to earn them by watching videos and engaging with content.
On the other hand, KSI also traded in NFTs, which is what Ethernity Chain focuses on. The platform differentiated itself by focusing on verified NFTs, ensuring authenticity and exclusivity through collaborations with celebrities, artists, and athletes.
On the Flipside
- KSI was just one of many influencers and famous people who were accused of financial wrongdoing when promoting crypto projects.
- The case highlights the challenges influencers face when it comes to publicly talking about investments.
Why This Matters
The KSI controversy underscores the powerful impact of celebrity endorsements on market dynamics. The case also serves as a cautionary tale for investors to be skeptical of influencer endorsements of crypto projects.
Read more about the Terra-Luna collapse:
The Collapse of LUNA: What Happened and Why?
Read more about the Salus & Lynex launch:
Salus & Lynex Launch First Major ZK Tech on Linea Blockchain
