ZachXBT Urges Caution on Soulja Boy’s SOULJABOY Memecoin After Past Promotion Concerns

Soulja Boy‘s new Base memecoin, SOULJABOY, has sparked warnings from blockchain investigator ZachXBT due to the rapper’s history of promoting rug pulls. Jesse Pollaks public purchase endorsement has revived concerns over potential scams in celebrity-backed tokens, urging traders to exercise caution before investing.

• ZachXBT highlights six past tokens endorsed by Soulja Boy that resulted in rug pulls or quick abandonments.
• The new token has a modest $85,000 market cap with 331 holders since launch.
• Soulja Boy earned approximately $730,000 from 2021 promotions, charging $10,000-$12,000 per post, per leaked details.

What is the controversy around Soulja Boys new Base memecoin？

Soulja Boys new Base memecoin, dubbed SOULJABOY, has ignited debate in the cryptocurrency community following endorsements from high-profile figures and warnings from investigators. Launched on the Base network, the token quickly drew attention after Jesse Pollak, a Coinbase Base co-founder, shared a receipt of his $1,500 Ether investment converted into the memecoin. This move has amplified scrutiny, especially given Soulja Boys track record with promotional activities that previously led to investor losses.

Why is blockchain investigator ZachXBT issuing a cautionary note？

ZachXBT, a renowned pseudonymous blockchain sleuth known for uncovering scams, has publicly advised traders to steer clear of the SOULJABOY token. In a post on X, ZachXBT questioned the decision to platform Soulja Boy, referencing a detailed April 2023 investigation into the rapper‘s endorsements of six tokens—RapDoge, Orion, The Life Token, Flokinomics, and SafeMars—that all collapsed into rug pulls or were deserted soon after promotion. A rug pull occurs when project creators suddenly withdraw funds, leaving investors with worthless assets, often mere days post-launch. ZachXBT’s analysis pointed to visible compensation traces in Soulja Boys promotional materials, underscoring inadequate vetting in past ventures.

Source: ZachXBT

The investigator‘s concerns extend to Soulja Boy’s foray into non-fungible tokens during the 2021 bull market. The rapper launched at least nine NFT collections, many of which vanished from platforms like OpenSea or failed to provide the advertised benefits, such as exclusive utilities or access. According to ZachXBTs estimates, these efforts netted Soulja Boy around $730,000 in total earnings from paid promotions, with fees set at $12,000 for Instagram posts and $10,000 for X shares, as revealed in a leaked pricing document.

Source: ZachXBT

Despite the buzz, SOULJABOY has struggled for momentum since its Friday debut on Base. Data from the Base app shows a current market capitalization of $85,000, supported by just 331 holders, indicating limited adoption amid the ongoing controversy.

SOULJABOY/USD, all-time chart. Source: base.app

Frequently Asked QuestionsHas Soulja Boy previously faced allegations in cryptocurrency promotion scams？

In February 2022, Soulja Boy was included in a class-action lawsuit alongside other celebrities for promoting the SafeMoon token, accused of participating in a pump-and-dump operation. The suit alleged that SafeMoon operated like a Ponzi scheme, luring investors with false promises of high returns while insiders profited from inflated sales.

What was Soulja Boys response to the recent memecoin warnings？

Soulja Boy addressed the backlash on X, apologizing for his earlier paid promotions and noting they occurred years ago during his initial foray into crypto. He claimed ignorance of any fraudulent involvement, such as with a scammer named Sahil, and emphasized learning from the experience to better understand the space moving forward.

Source: Soulja Boy

Key Takeaways

• Historical Red Flags: Soulja Boys past endorsements of tokens like SafeMars led to rug pulls, earning him significant fees but resulting in investor losses estimated in the hundreds of thousands.
• Current Token Performance: SOULJABOYs $85,000 market cap reflects cautious market reception, with only 331 holders as of launch, highlighting the risks of celebrity-driven memecoins.
• Investor Caution Advised: Experts like ZachXBT recommend thorough due diligence on any celebrity-backed project to avoid repeating patterns of abandoned promotions and NFT failures.