Jason Derulo Involved in Pump and Dump Crypto Scheme?
Pop singer Jason Derulo claimed he would never sell his investment in the Jason Derulo (JASON) cryptocurrency token, but it looks like he is backpedaling on that promise now.
Derulo reportedly sold much of his investment after his new meme coin fell by 72%. The coin launched just a few days ago and immediately skyrocketed. Reports say that Derulo’s wallets holding about half of all his JASON coins made around $180,000 with the move.
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This appears to be a “pump and dump” scheme to many investors, as Derulo hyped up the coin with co-creator Sahil Arora. The coin shot up within minutes, and when it started to decline, Derulo posted on social media platform X that he had been “fooled” by Arora. He committed to help push the coin to the moon.
Blockchain auditing firm Bubblemaps said that Derulo likely did not get fooled and that the entire story looked like a scheme that the two creators worked out from the start. Derulo has already made a lot of money from the coin, and there are fears that he will abandon it if the coin does not perform well in the short term.
Investors are rightly concerned that if Derulo abandoned the coin, it will have nowhere to go but down and will quickly be forgotten, with all of their investments bottomed out.
Should Investors Be Worried?
Celebrity ump and dump schemes for cryptocurrencies are not unheard of. Boxer Floyd Mayweather, Jr. and Kim Kardashian have both been accused of engaging in similar practices, where they promote a new crypto coin on their social media pages, make a tidy profit, and then exit the market.
That leaves investors high and dry, often losing out on much of their investment once the celebrity exits because there is no longer any interest in the coin. If that is how the celebrity was planning to operate from the start, then it is shady practice, if not outright illegal.
It looks like Derulo may have engaged in something similar with his coin, although he could be holding onto about half of his investment still.
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