The sugar daddy would also have to dump the coins mined to keep the price below the point where it would be worthwhile to do a 51% attack.
Why would it ever be worthwhile to 51% a network. Is there some money to be made I am unaware of?
Transfer your coin to an exchange and convert it into dollars. Take your dollars spend them on hookers and beer. Replace the part of the chain that contains your transfer with your version of the blockchain that does not. Rinse and repeat.https://en.bitcoin.it/wiki/Attacks#Attacker_has_a_lot_of_computing_power
...and then the exchange sets your dollar balance to a negative number and makes you return the money. Or you can never use that exchange again and hope they don't come after you.
And how do they know I submitted the false blockchain? Unless I am BCX and announce my intentions, nobody knows I am the one with the secret hash power.
All I did was accept BTC transfers from a third party and converted them to dollars. Half of the transactions look exactly the same as mine do.
They all got rolled back, so which transactions belong to the bad guy? It's not my fault the exchange lost their BTC.