Logan Paul is one of the current well known influencers that is ruling the social media platforms. From his boxing matches to pretty much everything associated with his show gets a lot of attention from the public.
Lately, Logan Paul had been talking about crypto space and the interest shown by him was somewhat obvious. While there is nothing wrong with indulging with cryptocurrencies, the way he allegedly set up new coins is certainly unethical to say the least.
Dink Doink is the token that is promoted by his team heavily on the internet. The coin has seen massive bull runs in a very short period of time. However, the tokenomics does not look great and the longevity of the project is highly uncertain. Most experts in the sector believe that this is just another celebrity endorsed pump and dump scheme.
Sadly, the data available justifies the narrative mentioned above. If you are thinking about buying Dink Doink or any other altcoin, then proper research is a must. As far as the entire scenario with this situation goes, go through the paragraphs below to understand the entire landscape.
Logan Paul Crypto Scam Explained
Logan Paul Crypto Scam is the trending word on YouTube and it is a controversial topic as well. Coffeezilla(a YouTuber) is the one that exposed the whole scheme and raised awareness about it. Recently, Logan and his gang has been promoting a new altcoin called Dink Doink heavily on Twitter and Telegram.
The whole team is calling this token that has no uniqueness as the hottest thing in the sector and are trying to sell it to their fans and followers. Sales pitch is subtle, but obvious. Plus, lack of regulation seems to be working in their favour. If you take a look at the token itself, it is quite easy to figure out that there is no intrinsic value.
For starters, the supply is huge and the worse part is, the coin is dominated by the whales. Real world practicality is not present and as soon as the influencers stop talking about it, the price of the token is highly likely to crash. Compared to the top dogs in the space such as Bitcoin and Ethereum, this coin is not worth your money in any way.
After all, you cannot take chances with a coin or go all in on something that has not stood the test of time, right? Currently, there are thousands of coins in the crypto realm.
However, only a few will survive over the long term and to pick the right ones, it is nothing short of a daunting task. As a general rule, try to stick with the ones that have a high market cap because generally, they are the safe ones. Also, regardless of how good the shite papers appear, never go all in on any coin, stock or ETF.
Tokenomics of Dink Doink
If you look at the long term trend of this coin on Coinmarketcap, then chances are you will be scared. The price is in a serious downtrend and the fad appears to have died. Chances of price breaking the initial levels are low and a new bull run is something that is nothing short of a miracle. This token has a supply of 10,000,000,000,000,000 and yes, we were even shocked to see so many zeros.
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Certainly, scarcity is not the driving factor behind this coin. Market cap is roughly around 1.4 million dollars and transactions trigger a 10% fee, 5% of the fees generated will go to the current holders of the coin and the rest is said to be redirected to the PancakeSwap Liquidity pool. Just like we mentioned before, the concentration of coins is way too much and in many ways, the entire thing does look like a ponzi scheme.
Meme coins and the majority of altcoins might have a huge spike in the initial days. Nonetheless, the price will always revert back to mean simply because things will get unsustainable. So, do not let spikes or pumps capture your attention. More importantly, never ever get involved with any asset purely based upon the news or catalyst type events.
Logan Paul Crypto Scam Narratives
There are tons of stories revolving around the Logan Paul Crypto Scam. Few people with considerable following on social media platforms have talked about it. We are glad to see people exposing potential pump and dump schemes before it’s too late.
Sadly, few people always fall for the trap and they won’t be able to recover their money any time soon. All of the trend started with Logan Paul expressing his view on this coin via Twitter. As soon as the message reached the target audience, a telegram group was formed and on the official channel, there were many celebrity shout outs.
The tokenomics clearly reveals that the top 100 wallets control over 80% of the float. While we do not exactly know who holds which address, it is safe to assume that there is a good chance everything is linked with Logan Paul and his team. You might be a fan of his show, but the way he is promoting this token looks like a hustle and that is an outright evil thing.
Our advice to you is never to get your hands on any new coins, unless you understand the fundamental factors and the tokenomics well. Remember, the probability of success can be enhanced, but the end goal cannot be attained without putting solid effort.
Coffeezilla on Logan Paul Crypto Scam
Coffeezilla is a YouTuber that certainly deserves name and fame. He has been exposing fake gurus and other scam operations for roughly a couple of years now. The kind of growth his channel has witnessed proves that he is doing a noble task. Coffeezilla made a 10 minute long video talking about different aspects about the Dink Doink coin and how it is just another token with a lousy narrative.
In his video, he alleges that Logan Paul is the real creator behind this coin and the entire marketing efforts are put up by him just to dump his holdings at a favorable price. In simple words, this is a kind of an exit scam wherein the perpetrators are waiting for better exit points before liquidating their holdings.
Thanks to blockchain technology, it is easy to monitor the activities of the whales and the plot is predictable. Coins that have lower market cap are always easy to rig and anyone that enters at the wrong time might have a difficult time when it comes to closing the position.
Think about the entry and exit points in advance and for best results, focus on both risk management and derivatives segments. To be on the safer side, try to indulge with cryptocurrencies that have a huge market cap.
Should you buy Dink Doink?
The answer is an obvious no. Dink Doink has no intrinsic value whatsoever. It is not comparable to tokens like Bitcoin, LTC, XRP or any of the top cryptocurrencies. The supply available is huge and it does not follow a deflationary model in the traditional sense.
Price action nullifies any optimistic view points and the entire situation is something that was very chaotic yet predictable. The only people that lost money holding this coin are the innocent investors that got in without doing proper research. Today, this coin is up by 5%. To any outsider, this kind of gain might be appealing.
However, every crypto enthusiasts know that this number is nothing compared to the kind of swings most altcoins experience on a daily basis. So, proceed with caution and like we mentioned above, never jump on to any trend without doing your homework.
Logan Paul Crypto Scam and Dink Doink currency plot have played out just like most experts anticipated. Initially, the hype took the coin to a new level, but the market had to correct itself and now, it is going down in an aggressive manner. Regulators won’t step in on the scene anytime soon.
Hopefully, the public will realise the importance of getting educated and the key takeaway from the incident is that one needs to understand all the metrics before making an informed decision. Knowledge is indeed power and the only ones that are going to beat the market will have to put in a lot of effort and time.
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