Iggy Azalea's memecoin faces $2 million scandal
NAIROBI (CoinChapter.com) - Iggy Azalea’s meme coin Mother Iggy (MOTHER) has experienced a remarkable recovery since the scandal broke, embroiled in a $2 million insider trading scandal. As of May 31, MOTHER is up 100.38% and is trading at $0.01664. This recovery comes after a previous drop to $0.050, highlighting the coin’s volatility as well as its growth potential.
Azalea’s Memecoin Controversy
Sahil Arora, who was previously involved in a celebrity token scam, took action against Azaria’s meme coin launch. Arora promoted IGGY on Solana’s issuance platform pump.fun, raising funds in a pre-sale of $380,000. However, investors claimed that they did not receive the tokens. Initially, IGGY had a market cap of $3 million, but later fell to $39,000. Azaria then launched her own coin, Mother Iggy (MOTHER), to distance herself from Arora.
Despite the controversy, MOTHER had a strong debut, with a market cap of $18.2 million. Azalea's brother, Mathias 'Matt' Kelly, helped her launch the token. Azalea hopes to build trust by destroying her own tokens while other celebrities are making a "carpet dump," demonstrating her commitment to integrity in the crypto space.
Allegations hit Iggy Azalea's memecoin
Blockchain data provider Bubblemaps revealed the activity of MOTHER internal transactions. It is alleged that insiders bought 20% of the supply before Azalea's announcement and dumped $2 million worth of tokens. The wallet JEEt3D1dZynWcgEcpPCNP2FvSbydHJiyfurU6QKVDVMH bought 109 trillion MOTHER and divided it among seven wallets. These wallets sold 890 trillion tokens and made a profit of $1.4 million.
MOTHER token analysis. Source: Bubblemaps
Blockchain investigator Coffeezilla questioned Arora about the allegations made by Jenner, Azaria, and Rich the Kid. Arora admitted, claiming that he planned the entire situation. He accused Rich the Kid of using him to make false hacking and scam allegations to gain publicity.
MOTHER's resilience amid controversy
MOTHER’s recent performance shows a significant rebound. As of May 31, it has risen by 100.38% and is trading at $0.01733. Its market cap is $16 million and it is ranked 2665th on the market. The 24-hour trading volume has reached $35.68 million, reflecting the growing interest of investors.
MOTHER/USD 1-day price chart. Source: CoinMarkerCap
Blockchain data provider Bubblemaps previously revealed insider trading activity, with insiders buying up 20% of the supply ahead of Azalea’s announcement. Nonetheless, MOTHER’s recent surge suggests a possible turnaround and investors may be regaining confidence.
Iggy Azalea’s memecoin MOTHER faces serious insider trading allegations, casting doubt on its integrity. Despite her efforts to distance herself from Arora and build trust, the controversy highlights the risks associated with celebrity-backed cryptocurrencies. Azalia’s promise to destroy her tokens in response to a “carpet-dump” reflects her desire to maintain credibility in the volatile crypto market.