If fans and followers blindly trust an influencer, it can become a big problem: the Ben Phillips case recently proved that. The Welsh YouTuber is said to have been involved in a so-called "pump and dump scheme" involving the cryptocurrency Safemoon. Stephen "Coffeezilla" Findeisen, of all people, wants to have convicted him of all things. The American Youtuber has done research and claims to have found out that Ben Phillips bagged around 12 million US dollars with market manipulative behavior.
29-year-old Ben Phillips is a YouTube phenomenon with around 4,6 million followers on his channel. There it is mainly about prank videos, which are not always funny, but often also tasteless. While one can at best find this morally reprehensible, Ben Phillips is said to have acted fraudulently in the Safemoon case. The American Youtuber “Coffeezilla” states that Phillips earned around 12 million US dollars with market manipulation.
Pump and dump around Safemoon?
As part of his research, Stephen “Coffeezilla” Findeisen claims that Ben Phillips has repeatedly emphasized that the cryptocurrency based on the Binance Smart Chain will be successful with regard to the Safemoon token. Secretly, however, Phillips is said to have received vast amounts of tokens and always sold them after an initiated “pump” – an increase in the price. Over time, the Welsh Youtuber is said to have earned around 12 million US dollars with Safemoon. He did not hold back with his rights, Phillips presented his fans, among other things, with a Roll Royce, a “dream car”. That was always one of his goals, Phillips said on Instagram, among other things. With the purchase of the top model of the car brand, he realized that.
Now you could nod and ignore the fact of the "pump and dump scheme", but given the steadily increasing influence of Youtubers and other influencers, it's not that easy anymore these days: especially when it's not just about follower numbers and advertising revenue, but directly for the fans' money, one should pay attention to the allegations against Ben Phillips. Especially in the crypto sector, it happens again and again that internet personalities can sometimes have a dramatic influence on price developments. If people are encouraged to buy a coin or token, the price increases (pump). Fraudsters take advantage of this and sell at a price peak, so the value of a currency drops (dump), sometimes even drastically, because follow-up sales by others are associated with it. In this way, it is possible for a few to enrich themselves, while honest and often inexperienced investors sometimes lose money because they react in panic (fear) to the new market situation, which is often completely unknown.
Such behavior is particularly dangerous because of the often close relationship between fans and their supposed idol. If influencers are overestimated, perhaps even trusted, this can sometimes lead to damage in “real life”, such as financial damage in this case.
The Youtuber “Coffeezilla” had uncovered Ben Phillips act after the Welshman once published the address of his wallet. Stephen Findeisen apparently managed to trace the transactions made by Phillips. Ben Phillips may have acted particularly boldly because he was also punishing others for similar behavior. But that's not all: Ben Phillips was even active as a team member for Safemoon at times, which makes the allegations about the "buy the dip" tweets on his around 750.000 followers on Twitter all the more serious.
Ben Phillips reportedly made the biggest sell-off in April, according to Coffeezilla, at a time when Phillips had been particularly bullish. Ben Phillips has since deleted most of his Twitter messages. But the internet does not forget.
The team around safemoon is facing a gigantic challenge these days: You have to win back the trust of the fans. The team around CEO John Karony has therefore grown by a few big names from the tech scene in recent weeks, and the staff has been reorganized with some significant cuts. The token is now about creating a place for itself as a serious investment case. This should succeed, among other things, with an in-house debit card and an exchange, its own trading platform for cryptocurrencies.
In a video, Coffeezilla shows what he claims to have found out about the alleged “pump ad dump” at Safemoon by Ben Phillips:
Last updated on 3.08.2022/XNUMX/XNUMX / Affiliate Links / Images from the Amazon Product Advertising API. * = Affiliate links. Images from Amazon PA API