In 2024, Dubai-based investor and promoter Sahil Arora executed a series of high-profile token schemes involving celebrities, generating substantial profits.
The Strategy Behind the Success
According to reports, Arora issued tokens tied to well-known figures such as Caitlyn Jenner, Floyd Mayweather, Amber Rose, Sunny Leone, and Iggy Azalea. Using a platform called Pump Fun, he orchestrated a campaign that included direct messages to celebrities, offering them significant payments in exchange for promoting the token. The core of Arora's scheme involved manipulating the token's price through hype and celebrity endorsements. Once the token was launched and its price was artificially inflated through celebrity tweets, Arora, who held a substantial portion of the token’s supply, sold off his holdings. This rapid selling caused the token’s value to plummet, leaving other investors with worthless assets. Bubblemaps has traced over 40 crypto addresses associated with Arora, which were used to manage and manipulate the token supply. Typically, Arora held between 25-40% of the token's total supply in various addresses.
Financial Gains and Discrepancies
Arora’s methods were lucrative. Reports from Bubblemaps indicate that he earned around $30 million through these schemes in 2024. The breakdown of earnings, however, shows considerable monthly fluctuations: $3 million in January, $1.8 million in February, $3.2 million in March, $2.5 million in April, $4.8 million in May, $2.5 million in June, $2 million in July, and a staggering $6.6 million in August. However, independent blockchain sleuth ZachXBT has criticized Bubblemaps' calculations, suggesting they were inflated due to an error involving incorrectly attributing a Poloniex wallet address to Arora. ZachXBT’s revised estimate suggests that Arora's actual earnings from these schemes were likely between $2 and $3 million.
Consequences and Reactions
Celebrities involved in these schemes often face scrutiny and legal issues. While some promote tokens for financial gain, the true value and legitimacy of these projects are frequently questionable.
Sahil Arora's activities in the crypto market highlighted how easily token prices can be manipulated using celebrity endorsements. However, this method raises many questions regarding the transparency and legality of such operations.
Comments