Meme coins scam, fueled by the feverish excitement surrounding meme coin mania, have been infiltrating the cryptocurrency market.
In a report, PeckShield, a prominent blockchain security company, has identified a staggering total of 24 scam meme tokens in the past 10 days alone, all of which executed rug pulls to deceive and defraud unsuspecting investors.
Exploiting the current craze for meme coins, these scammers have seized the opportunity to create and swiftly liquidate their fraudulent tokens, resulting in the loss of millions of dollars for hapless individuals.
The Rise of Scam Meme Coins: A Growing Threat to Investors
A disconcerting trend has emerged as highlighted in a recent tweet by PeckShield. Over the course of the past days, an alarming wave of rug pulls has plagued the cryptocurrency market, involving a concerning number of 24 scam meme crypto tokens.
#PeckShieldAlert We have detected a series of #rugpulls involving the creation of ~24 Scam #MEME Tokens within the last 10 days. #SHITMEME, #BENS, #WorldCoin, #MONKEYS, #ERDR, #Magneto, #STARK, #ZAT, #LADYBOY, #USACOIN, #WLD, #POGO, #Miniclip, #PORN, #FROGS, #RNDT, #PSYOP,… pic.twitter.com/KlBX5k9Go6
— PeckShieldAlert (@PeckShieldAlert) May 23, 2023
The list of deceitful tokens includes ERDR, Magneto, MONKEYS, POPCAP, STARK, TINDER, and USACOIN, among others. Adding to the growing list of victims, the freshly minted SEI token, which came into existence earlier today, has already fallen victim to a rug pull.
PeckShield’s report indicates that the scammers behind the SEI token initially acquired 5.19 ETH from the OKX exchange, artificially inflating the token’s price to entice unsuspecting investors, only to swiftly drain the liquidity pool.
Drawing attention to the connection between these fraudulent tokens and popular meme coins, the PeckShield team also mentioned FROGS and LADYBOY. These tokens appear to align with the likes of Pepe (PEPE) and Milady Meme Coin (LADYS), which have witnessed a meteoric rise in popularity over the past month.
Moreover, PeckShield issued a stern warning to the crypto Twitter community about the most recent addition to the scam meme coins, BEREAL, urging investors to exercise caution and avoid falling prey to its deceptive allure.
BTCUSD falls back into the $26K turf. Chart: TradingView.com
Rug Pulls: An Ongoing Menace in the Cryptocurrency Landscape
While the recent surge in rug pulls involving scam meme coins may have captured headlines, the concept of rug pulls is not a new phenomenon within the crypto space.
One of the most notorious examples of a rug pull in cryptocurrency history is the infamous OneCoin scam, which serves as a stark reminder of the risks inherent in this decentralized ecosystem.
The OneCoin scandal, orchestrated by Ruja Ignatova, unfolded between 2014 and 2017, ultimately defrauding investors of an estimated $4.4 billion.
In the context of the recent surge in scam meme tokens, the rug pulls are a stark reminder that vigilance is essential when navigating the cryptocurrency market.
Investors must conduct thorough research, scrutinize projects and teams, and exercise caution before committing funds to any venture, regardless of its popularity or the current market frenzy.
-Featured image from InvestX