The meme coin rally of recent weeks is followed by accusations of ‘manipulation’. Reports by blockchain security experts suggest that 3 project teams are secretly using funds.
These 3 meme coins have been found to manipulate token prices
According to the report by @x_explore_eth on Twitter, some meme coin teams are raising large amounts of funds. Among the detected meme coins were WOJAK, TRAD, and NEET. In the report, WOJAK, TRAD, NEET etc. If you are planning to invest in meme coins, you should do a thorough research and risk assessment”.
According to on-chain data, the developers behind the respective projects are pulling the coins into their own wallets without adding them to their liquidity pools. As Kriptokoin.com, we have conveyed that Pepe Coin has come to the fore with a similar accusation today.
Many MEME coins deployers have accumulated a large amount of funds before increasing liquidity, which means that there is a possibility of being manipulated by a certain group. MEME coins with similar behavior include WOJAK, TRAD, NEET, etc. . According to @x_explore_eth.
— Wu Blockchain (@WuBlockchain) April 24, 2023
Meme coin prices are falling hard!
Polytrade (TRADE), Wojak (WOJAK) and Neet Finance (NEET) were the latest projects to come up with fraud allegations. As the development continues to spread on social media, prices show a double-digit decrease. Polytrade (TRADE), for example, lost more than 15% on the day.
Wojak (WOJAK) price is down over 15%. The meme coin, traded on exchanges such as Bitget, BTCEX, BingX, and BitMart, has dropped more than 75% from the ATH level. WOJAK’s daily depreciation exceeded 30% at one point.
Ordinals Finance rug pull will be the highlight of the week
Another ‘rug pull’ scam occurred on April 24, 2023, when Ordinals Finance exited the market. Ordinals Finance was an Ethereum-based DeFi protocol that enabled lending and borrowing inscriptions.
As reported by CertiK Alert, the scam resulted in a loss of $1 million. Additionally, the deployer removed OFI tokens from the OEBStaking contract and began exchanging them for ETH.
We can confirm that the @ordinalsfinance exit scam has resulted in a loss of $1 million.
All social media accounts have been deleted as well as the project's website.
Funds have been consolidated into EOA 0x34e…25cCFhttps://t.co/0Pwlt3yibm https://t.co/RA7vSjNajI
— CertiK Alert (@CertiKAlert) April 24, 2023
Ordinals Finance’s Twitter account is currently disabled. The same was true for the website. Also, data from Certik’s website shows at least 1,287 investments in rug pull.
How can I detect scam projects?
Crypto users can easily fall for a scam project. These are ongoing issues in the industry as there is little regulatory oversight. This is why opportunists take advantage of investors. As the industry continues to grow, we are seeing more cryptocurrency scams than in previous years. To avoid these, you can consider the following 6 items before investing.
- Websites with typos and little information
- No social media pages or too many new pages
- New Reddit accounts promoting the project
- A few Google search results other than the project itself
- Fraud website detectors collect little or no information as the project is so new
- If the project is called a scam by a large number of people on different platforms
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