Concerns around the impact of the Trump meme coin have proved founded as a flood of scams hit the market.
Crypto analysts report 6,800 fraudulent tokens and 91 fake dApps since $TRUMP made its $72 billion debut, as reported by Crypto News. The coin, which President Trump admitted himself that he “didn’t know much about,” was launched to great success, achieving a market cap of $72 billion 48 hours before its launch.
While this surge was touted as a triumph by fans of the meme coin, it was a double-edged sword in attracting people wanting to take advantage of the scenario. Scammers reportedly were quick to flood the market with fake tokens, hoping to trick those wanting to invest in $TRUMP.
For example, a 206% increase in tokens using the name ‘Trump’ hit the market on the same launch day, leaping from 3,300 to 6,800 tokens. Mimicking the legitimate $TRUMP coin made it difficult to distinguish the real assets from phoney ones.
What are the risks of the meme coin scammers?
These fake tokens would only ever generate profit for the scammers, echoed by a similar surge in interest into malicious decentralized applications (dApps). Impersonator dApps increased by 14 times, including more than 90 fake applications in under 24 hours.
Other members of the Trump family were also targeted with scams, with tokens launching with the names ‘Melania’ and ‘Barron’ to try and pull in potential buyers. If you’re looking to invest, it’s well worth double-checking the name of the token you’re investing in and, ideally, only clicking through to buy from links that come directly from sources you trust.
What’s more, remember not to exchange funds with people you don’t trust. Guarantees of big returns are usually a sign of fraudulent behavior, as well as pressure to transfer funds quickly and only accepting cryptocurrency as a form of payment.
Featured image: Midjourney