Andrew Tate's $DADDY memecoin is quickly gaining traction, beating Iggy Azalea's $MOTHER in market cap in under two weeks.
Both memecoins are under accusations of insider trading, with large anonymous wallets manipulating prices.
Andrew Tate holds a staggering 40% portion of $DADDY's supply, raising concerns about a possible rug pull.
Overall, the memecoin space is attracting celebrities, but their involvement might be risky for investors.
The memecoin scene has changed rapidly over the last few months, with hundreds to thousands of them being launched monthly—and most of them having one issue or the other, related to scams and potential rug pulls.
Throughout 2024, we saw several memecoins emerge, based on political and social figures, like the "Boden" and "Tremp" memecoins, as well as other celebrity memecoins like the popular $MOTHER, linked to Australian rapper, Iggy Azalea.
However, after enjoying a successful May and an almost overnight rally to more than a $200 million market cap, it appears that there is a new contender memecoin in town—from none other than Andrew Tate.
Here are details of the ongoing battle between Tate’s new $DADDY memecoin, and Azalea’s $MOTHER—as well as why both might end up being giant rug pulls.
Just like most memecoins created between January and June of 2024, Andrew Tate's "Daddy Tate" memecoin (with ticker $DADDY) was launched on Solana and surfaced on the internet sometime last week.
With less than a month of trading, this so-called $DADDY is now giving $Azalea's $MOTHER a thorough thrashing and has now hit a market cap of more than $300 million, according to data from DexScreener.
This is in stark contrast to the peak on Iggy Azalea's $MOTHER of around $270 million sometime last week and was only possible after $DADDY RALlied by a staggering 218% in just one day, with its value hitting $0.30 per token.
The $MOTHER memecoin
At the time of writing, $MOTHER now has a market cap of around $153 million, with a plunge in price from around $0.27 to $0.15.
The rapid rise in the price and market cap of $DADDY is not without its controversies, as highlighted by the crypto analytics firm, Bubblemaps.
The firm recently took to Twitter to call out Andrew Tate over what it suspects is a massive wave of insider trading.
According to Bubblemaps’ data, a group of 11 insider wallets managed to buy around 20% before Andrew Tate started to promote it on Twitter.
These wallets appear to have bought the tokens on 9 June and have seen their holdings grow to about $30 million at current prices between then and 12 June.
Moreover, these wallets were all funded through Binance—with the same amounts of money—all simultaneously, indicating that all of this is a coordinated effort.
All of this is without mentioning how Andrew Tate himself holds about 40% of DADDY's supply and is sitting on assets worth around $122.8 million, which he claims he will never sell but instead “burn and buy.”.
"One of these wallets could nuke the liquidity pool." BubbleMaps warns, "Be careful trading $DADDY."
A single one of these wallets (including Andrew Tate's) has the power to nuke the entire $DADDY army, and it is important to stay safe when approaching cemebrity memecoins.
Tate posted another tweet right after BubbleMaps’ allegations, saying “You see yourself in others. I will never sell what was sent to my wallet, I will only burn and buy. Forever."
However, the on-chain data seems pretty clear at this point, considering how 40% of a token’s supply might be too much for a single wallet to hold, along with how 11 anonymous wallets hold another 20% of the token’s supply.
Interestingly, there were also similar allegations against Iggy’s $MOTHER, where another group of unidentified wallets bought around 20% of the total supply before launch, and even dumped $2 million right after.
"More celebrity tokens will come," BubbleMaps warned, "but remember that most of them end up worthless and are often plagued by insider trading."
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