Another scam has occurred in the cryptocurrency space. According to the latest reports, a meme coin has raked in $4 million by performing a “rug pull”. Here are the details…
Meme coin defrauded users
The price of TeddyDoge (TEDDY) has dropped more than 99.94 percent in the last 24 hours, according to Coinbase data. According to blockchain security firm PeckShield, the project is a “light rug pull.” The firm says that the price of the cryptocurrency was raised by the issuer of the contract and then lowered. Whoever is behind the rug pull has managed to seize 10,000 BNB tokens ($2,591,573) and $2 million worth of Binance USD (BUSD) stablecoins. Assets are currently transferred to the Binance exchange.
#PeckShieldAlert #rugpull TeddyDoge @DRAC_Network is soft rugpull. $Teddy has dropped -99.4%. The assets currently sit in https://t.co/3zu55iZAWX (accumulatively receive ~10k $BNB & 2m $BUSD) and are slowly transferred to @Binance pic.twitter.com/I48dWkLIOE
— PeckShieldAlert (@PeckShieldAlert) July 25, 2022
Scammers trying to enrich themselves by taking advantage of the popularity of Dogecoin continue to emerge. DogeMother, one of the numerous copies of the biggest meme coin, has been the subject of the latest scam, as we have also reported as Kriptokoin.com. Meme coin is currently down 99.9 percent. The trading volume in the last 24 hours is $ 8.3 million.
Beware of meme coins
So projects that crypto investors should watch out for may include meme coins, which are cryptocurrencies inspired by an internet meme or joke. The most famous example of a meme coin hype was the 2021 Dogecoin (DOGE) and Shiba Inu (SHIB surge. Of course, Dogecoin and SHIB were not invented as a scam. They were created as a way to make fun of Bitcoin (BTC) and other cryptos. Rutgers Business Merav Ozair, professor of fintech at the School, says the problem with meme coins like DOGE is that they “have no use cases.”
As we have reported as Kriptokoin.com, SHIB has made a breakthrough in the metaverse. It also adds innovation to technology with Shibarium. However, apart from familiar cryptocurrencies like this, the expert states that the coins themselves are pure speculation. Ozair says there is a benefit behind some meme coins, which can give them similar value to other types of investments.
Of course, other cryptocurrencies can also be completely fake. “The promotion of fake NFT campaigns on Instagram has helped scammers make a fortune by defrauding users,” says Wykes. To avoid such scams, be skeptical of overpriced products and, as always, be cautious when making a new investment, according to Ozair.
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