The Logan Paul Cryptocurrency Scam Just Got Worse...

What's up, Graham? It's guys here. So, I certainly did not expect to make this video today. But when I see so many people calling out this new Logan Paul cryptocurrency scam, I felt the need to throw my hat into the ring, see what this is all about, and get to the bottom of what's really going on. Because I gotta say, there's a lot happening here that is not being mentioned by anybody else. Plus, they love staying up late at night doing internet and best investigations on the weirdest financial stuff that you would have no idea is happening right before your eyes.

Although, unfortunately, the more I looked into this, the more disappointed I was. I have a feeling this could only go on for so much longer until eventually tactics like this are officially shut down. And right up front, I gotta say that Coffeezilla's recent video saved me a lot of time by pointing me in the right direction from which to begin searching. So, for anyone who has not seen that video, I'll link to it down below in the description.

So, with that said, if you guys appreciate all the research that goes into a video like this and researching Dink Doink for hours on end, just do me a favor and hit the like button for the YouTube algorithm. Thank you guys so much! It helps up my channel a ton. Also, I want to say a big thank you to Logan Paul for sponsoring this! Just kidding, guys, video's not sponsored. Let's begin.

So, this all starts with a new cryptocurrency that's gaining some traction lately on social media, and it's called Dink Doink. Yep, seriously, Dink Doink! Now, normally in a situation like this, you would assume that it's getting some good attention, right? Like, Dogecoin built a huge community around the meme for many years, the Bitcoin community is incredibly strong, and the Ethereum network has a genius team behind it constantly looking for new ways to expand. But Dink Doink, on the other hand, is getting quite a lot of negative attention and a lot of backlash by what many people would say is an outright scam.

Coffeezilla was one of the first channels out there to really call it out, and Idubbbz followed up with the fact that it doesn't really do anything. Wait a second, Graham. You mean that someone created a cryptocurrency and is pumping it that actually doesn't do anything? How is that possible? Well, I'm glad I asked that question to myself, and here's where it all begins. Go ahead and visit dinkdoink.com, and you'll be greeted by a colorful website that looks eerily similar to South Park with absolutely no affiliation to South Park.

The premise here is that the Dink Doink cryptocurrency is built around a community of influencers and cartoons featuring a two-minute-long video of Logan Paul getting kidnapped by a group of female fans, while the paper clip Dink Doink comes to the rescue. Logan Paul is saved and that's it! That's the end. It's over. There's really not that much to it. Like, there's a supply of 10 quadrillion Dink Doink coins in circulation. It's got a market cap of over a million dollars, which, by the way, has constantly spiraled downwards over the last few days. Almost 10,000 people are holding on to it and to top it all off, Dink Doink aims to be the first ever decentralized media franchise where token holders receive an NFT for every episode that drops.

They even give you a roadmap to their success including eight to ten more animated episodes, music videos, an each bridge, a burn and liquidity mechanism, domestic and international marketing, decentralized content, and merchandise. Or basically, it's all the crypto buzzwords you could possibly think of that are stuffed in the first phase of success. Then after that phase two, they're basically just going to get more influencer marketing. In phase three, they'll make a movie, get more influencers, and they'll take advantage of viral trends.

Now, as far as the fundamentals of the coin, because that's what we really care about, they say that Dink Doink is incredibly lazy. In the spirit of laziness, Dink Doink built a token that will reward you for sitting on your doing nothing. No staking, no vaults, no bulls, just sit back, relax, and watch your Dink bag grow bigger and bigger. Then, of course, behind the scenes, every transaction triggers a 10% fee where 5% is redistributed to all the current holders in proportion to their holdings, and then 5% of stakes are for their liquidity.

Basically, this is a way to incentivize people to buy and hold because you need the price to go up 10% just to break even. All things being equal. And then finally, if you're sold on the idea, they end their website with instructions on how to buy Dink Doink along with testimonials from all of your favorite influencers on how stupid the coin is and how they're all in.

Now, I think it's pretty safe to say that the coin doesn't really do anything, and there's no shortage of random coins out there being created on a daily basis for the sole purpose of trying to extract as much money as possible from gambling addicts. But it did strike me as a bit odd that all of Logan Paul's friends seem to be in on it together, all at the exact same time.

So, it's reasonable that this would raise some suspicion that it must be a pump and dump scam, and they're simply driving up the price so they could quickly offload it and make as much money as possible, right? Well, that is when I started doing my digging. I wanted to find out who's behind it because I had a feeling there's a lot more going on than meets the eye.

Now, this all started from Coffeezilla's video, who mentioned a two-hour-long podcast featuring the CEO of Dink Doink, and at 28 minutes and 37 seconds, he says this: "I was chilling with Logan and we were like what's the stupidest name we could think of? Bitcoin right? Oh my God! And it just came alive, like when we designed the character on his phone on Snapchat." So, at this point, we know that Logan Paul's at least somewhat involved with the creation of the coin, and we know he's friends with the creators.

So, who is the creator? Well, if we go to the Dink Doink telegram, he just calls himself DD CEO underscore 69 and doesn't give us any indication of who he actually is. So instead, I went to Twitter and I searched back to try to find anything that would give me some indication of who he is, and then I found this: The Crypto Puffin asks who is the CEO of Dink, to which General Dink replies: "Latx 91, a close friend of Logan Paul." Boom! We're on to something.

So, that takes us to a Twitter page: The Truth Experiment, who has a history of reposting Dink Doink memes and other crypto commentaries, so we know this has to be our guide. I then turned to Google, and with a quick search of The Truth Experiment Logan Paul, it takes us to a podcast by Chris D Comedy with, you guessed it, Jake Brito, aka The Truth Experiment, aka the potential alleged CEO and creator of Dink Doink.

Now, I don't want to say with 100% certainty that he is the only one behind the coin, but I believe there's a strong likelihood he is based off the information I'm about to share. It's obvious that him and Logan are friends; they're creating a currency together. So, what's the problem? Well, that is where we get into the original Chris D Comedy interview that I mentioned a few moments ago, which, by the way, was posted on April 20th, exactly 69 days before Logan Paul tweeted about it, calling it "the dumbest, most ridiculous Bitcoin I've ever seen," and that's why I'm all in.

You can't even make this stuff up! Like, what are the chances this is posted on 420, and then 69 days later Logan Paul tweets about it? Like, this is the sort of internet investigation work that I think deserves a like on the video if you haven't done that already. Anyway, at 24 minutes and 30 seconds in, he jokes about starting his own cryptocurrency, and then he says this: "Coins, by the way, are only legal if they have utility. The difference between… like, the SEC will shut you down if your coin looks and feels like a stock; that's illegal! That means it's a security. Crypto coins are supposed to have utility; they're supposed to use them—that's what makes it legal."

And that's where, in my opinion, we hit one of the first problems. Now, it's obvious at this point that everyone involved has made it wildly clear that Dink Doink is a stupid idea. It's a useless coin; it doesn't really do anything, and it was built around the purpose of let's just make something as ridiculous as possible and then just see what happens. But here's where it starts going wrong: on the one hand, doing during the interview with Steven Steele, he talks about his passion for the project, how he truly believes that this is the movement that people have been waiting for.

And then he follows it up by saying, "Maybe we can create something that sticks together for a long time that always has attention and is popular so you can have trust in it and it can grow and become a very meaningful example of maybe how to utilize community as the first priority." And then shortly after that, he says this: "Logan and I are being very cautious about how we roll this out to ensure that, you know, that chart is our reputation and that's how I feel right now."

Well, despite him saying that he wants to be really careful about the launch and how he wants us to stick around for a long time and how it has the potential to grow to something bigger, this is how it was actually promoted. "That's what I'm doing! This is a coin I believe in, the hottest newest coin of 2021, is Dink Doink! Dink Doink is going to the moon! Who's gonna stop us? Logan and I are all in! Disney 3.0!" And it even adds even more fuel to the fire by saying this: "I can't wait for people to tell their friends who aren't in crypto: 'You don't get it! I just bought a house off a coin called Dink Doink,' and their Twitter handle was 69."

So, in my mind, this is where it starts going downhill. Like, the price chart of Dink Doink. The issue from my perspective is that you have a cryptocurrency openly started as a joke while forcing together a community of friends to bring awareness around something which they all openly call a poop coin. You know what? That's okay because they're calling it for what it is. There's no hiding the fact the entire thing is ridiculous, and they own up to that. But it's confusing, on the other hand, to talk about the importance of your reputation, carefully rolling it out, and making sure it's all done correctly versus how it was actually promoted, which was a cluster of influencers all telling each other it's going to the moon or implying that, "Hey, you might be able to buy a house one day with Dink Doink."

It's the same thing as saying, "Hey, you might get struck by lightning tomorrow as you're walking to cash in your winning Mega Millions lottery ticket." It could happen! It's not exactly impossible, but it's confusing when people get mixed signals between disappearing like a pump and dump and this being a funny inside joke that maybe doesn't translate as well outside the friend group.

So first, we need to address the allegations of this being a scam, and I will say objectively there was nothing here that I could find that points to this being an outright scam. Now, yes, Coffeezilla did discover that the top four Dink Doink wallets hold over half of Dink Doink in circulation, but there is no evidence that I could find that shows that any of them dumped or sold the coins while they actively promoted it. Now, if I'm wrong about that, I'm absolutely willing to pin a top comment here on the video with evidence that this happened, but as of now, I just don't see anything that supports that.

From my perspective, these guys all have money, and they're not stupid. I don't think they would risk their reputation and potential jail time to make a few hundred thousand dollars promoting a junk coin. People sometimes forget about how much money someone like Logan Paul makes along with his entire crew, and for them, longevity is way more valuable than a quick profit from pumping a cryptocurrency.

Even if we look up the dictionary definition of a scam—a deceptive scheme or trick used to cheat someone out of something, especially money—and from what I could see, there's no misinformation being spread about what the coin is and what it does. It's stupid; it's an attempt at a joke; it's fairly useless; it could attract a community, and there's an entire show dressed up like South Park to promote the character Dink Doink.

Now, technically they have to do it this way, otherwise they're in violation of the SEC by promoting a security. But from what I get down, they have not misled anyone, and people know exactly what they're buying into. At some point, people have to take personal responsibility for their actions, and if you lost money by investing in Dink Doink, then that's a good lesson not to do that again.

Now, where I do think they went wrong was in their incessant marketing that it could go to the moon, or how they're all in, or how Dink Doink could be the future. Personally, I believe that sort of marketing just completely ruined it. It just felt forced, and the fact that all of them started promoting it around the exact same time with enthusiasm I never even knew existed just brings about a lot of skepticism.

Now, I hate to be the Debbie Downer here, but we gotta be real. At some point, the SEC is going to start taking a look at some of these coins a lot more seriously, and they'll have to start issuing fines and potential jail time for this type of promotion. Like, if this is worth stock or any type of security, this would warrant immediate action by the SEC, but because you disguise it under the veil of a currency with an actual utility purpose, the SEC can't get involved. Because first, it has a purpose other than ownership rights being bought and sold for a profit, and second, it's decentralized, so who exactly do you go after?

I pretty much guarantee they had their legal team reviewing this very closely, and right now the cryptocurrency market is like the Wild Wild West. You could pretty much get away with saying anything, and as long as Logan Paul didn't get paid to promote this coin, it's pretty much all legal. To me, it just doesn't make any legal sense how someone is able to create a completely useless currency, pay influencers to promote it, and then sell it for a profit while unsuspecting people are left holding the bag.

I just can't see this continuing for that much longer. Now, I want to make it very clear: there is nothing here that indicates that's what Logan and all of his friends are doing with Dink Doink. But there are way too many unscrupulous people in the industry not to question every single coin that's being offered right now. And it doesn't make it any better that all of them nonchalantly say "not financial advice," as if Bernie Madoff could have just disclosed that at the end of his Ponzi scheme and somehow gotten away with it.

I just hope that in the future there's more transparency in terms of how influencers are being compensated, if anything, what their relationship is to the token they're promoting, and if they're going to do something that will have a material impact on the price, that should be disclosed ahead of time, just like you would any stock or security.

And lastly, let me just say this: there is no surprise with what you're getting here. You're buying into a coin called Dink Doink, promoted by Logan Paul and his friends. It shouldn't be a shock if this goes down in value and you lose money. Coins like this are entirely driven by speculation and the frequency by which someone tweets about it going to the moon. So if you do buy something like this, it's no different than going to the casino or buying a lottery ticket. Just assume that your money is gone and it's purely for entertainment purposes.

But if we are going to take this seriously, I just think it lacks the first mover advantage of originality. At least with Dogecoin, it was the first joke coin that never intended on being anything, but it just so happened to organically gain traction on its own as people just happened to have found it, and it matured over many years. With this, it just seems forced, almost as though there's some sort of ulterior motive that we should be made aware of.

And that's where things start falling apart. Cryptocurrency needs time to mature, and anything that has the ability to rise in price so fast can also just as easily fall in price. So, even though I'm going to take the stance here that no one did anything wrong and it's not a scam, I'm just not a fan of the idea, and I personally think the marketing was terrible. I think Logan is great at getting attention, and he got attention, but in this case, I'm just not sure it was the right attention for this specific purpose.

So, I hope that answers any questions you might have. And either way, I want to make it clear: this is not financial advice. Don't listen to me; I don't know what I'm talking about. All of this is for entertainment purposes only. None of this should be taken as a fact, and all of this is purely my made-up wild imagination opinion that doesn't mean anything.

So thanks so much for watching investigative research with me, and I bet you never woke up this morning expecting to see a video about Dink Doink. Well, there you go! So with that said, you guys, thank you so much for watching. I really appreciate it. As always, make sure to destroy the like button, subscribe button, and notification bell. Also, feel free to add me on Instagram; I post there pretty much daily, so if you want to be a part of it there, feel free to add me there. Also, on my second channel, The Graham Steppin' Show, I post there every single day. Don't post here, so if you want to see a brand new video from me every single day, make sure to add yourself to that.

Thank you so much for watching, and until next time!