A dogecoin-inspired altcoin project crashed shortly after blockchain security firms’ alarms about “honeypot scams”.
Dogecoin counterfeits finally turn out to be scams
According to an alert by blockchain security firm PeckShield, DogeMother, one of many Dogecoin subsidiaries, is a honeypot. Honeypots or honeypots are decoy servers that are used to gather information about attackers or users who access information systems without authorization. In recent examples, BNB Chain-based DogeMother has lost over 91% after it was found to be a honeypot.
PeckShield warns altcoin investors not to fall for the game
Ironically, DogeMother has been marketed by its developers as the “most durable” cryptocurrency. DogeMother’s total supply is 1,000,000 tokens. The developers claimed that investors will take an active role in all elections with these tokens. Guaranteed rewards were promised if they made an investment. However, there were several red flags in the project. It was used on the official website as a market story where a person with a return on investment could buy a Lambo for their mother, a promise often made by fraudsters. After the funds were collected and the rug pull was complete, the Telegram channel was shut down and is now poised to lose track of it through transaction mixers like Tornada Cash. PeckShield urges cryptocurrency investors to do research to avoid falling into fraud.
Honeypot scams entice investors to buy a cryptocurrency with big promises, but then prevent them from selling. Withdrawals are attached to a contract, as the name suggests, as only whitelist traders are allowed to withdraw their funds. Most of these cryptocurrencies are built on the BNB Chain, which makes it easy to create new tokens due to their generally minimal cost. Despite the meme coin fever waning, scammers are trying to profit from it by attracting new investors with questionable tokens that often turn out to be scams. As Cryptokoin.com reported, PeckShield has detected hundreds of honeypot scams in the past. The scammers are trying to capitalize on the Shiba Inu’s popularity and are laying undetected traps with their successful advertising campaigns.
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