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Andrew Tate, widely known as @Cobratate, has been accused of making millions by deceiving his audience through cryptocurrency manipulation. Here’s what happened and why his actions have sparked outrage.
The Live Stream That Sparked It All
Recently, Andrew Tate hosted a live stream, claiming it was a fun, profit-driven venture for his followers. In this session, he promoted two types of cryptocurrencies:
Low-cap memecoins: Highly volatile tokens with small market capitalizations.
Big-cap memecoins: More established but still prone to manipulation.
Tate’s goal? Convince viewers they could achieve financial success by investing in these coins. However, behind the scenes, the narrative was far more sinister.
The Pump-and-Dump Strategy Unveiled
Low-cap memecoins are notorious for their vulnerability to price manipulation. Due to their low liquidity and limited participants, even modest investments can cause sharp price swings.
Andrew Tate, leveraging his massive influence, revealed his holdings in two tokens: $DADDY and $G. His announcement predictably led to a surge in demand, drastically inflating their market capitalization. However, as the prices peaked, Tate allegedly sold off his holdings, leaving his followers with heavy losses.
How the Scheme Played Out
According to reports, the scam followed a calculated plan:
1. Preparation: Tate’s team pre-deployed a token on @pumpdotfun and acquired the majority of its supply to ensure price control.
2. The Hook: A compelling story was crafted to lure Andrew into the live stream.
3. The Execution: As followers invested heavily, the team sold off their tokens, causing the market to crash.
A Case in Point
Take the example of a specific token, with contract address CA: 2VVSAJ6E3wHHcMGKs9SWAr5YujQaPVSdGn2rTWZ9pump. Allegedly, Tate was persuaded by @issathecooker to promote this token.
Its market cap initially soared to $6M as fans rushed to invest.
Shortly after, the market cap plummeted to $50K, leaving investors with massive losses while a select few profited handsomely.
The Top Traders' Profit Strategy
An analysis of top traders during this incident reveals:
Profits ranged from $80K to $250K.
These traders strategically purchased large quantities of tokens early, artificially inflating the price before dumping them.
The Lesson: Don’t Be Blinded by Celebrity Influence
Andrew Tate’s fame and charisma may make him seem trustworthy, but this alleged scheme underscores the dangers of blind faith. The allure of his success was used as bait to exploit his audience.
Instead of relying on celebrity endorsements, use your critical thinking and analytical skills. Always research thoroughly before investing, especially in volatile markets like cryptocurrency.
Stay informed. Stay cautious. Don’t let flashy narratives cost you your hard-earned money.
