Increasing Prevalence of Scam Tokens Targeting the Dogecoin Community
A well-known figure in the Dogecoin community, Mishaboar, has expressed concern about the rise of scam tokens that specifically target members of the Dogecoin community. These “pump and dump” scam coins lure unsuspecting buyers with promises of high returns, only to crash in value after the scammers sell their coins, causing a collapse in price.
Scammers Exploiting the Dogecoin Tag and Targeting Events
In a recent social media post, Mishaboar warned the community about individuals using the Dogecoin tag or targeting specific events to deceive victims. While Dogecoin has experienced significant growth and gained support from influential figures like Elon Musk, it has also attracted dubious actors who create copycat tokens and scam coins to trick people into investing.
Manipulating Algorithms for Airdrops
Mishaboar explains that proponents of these scam tokens manipulate algorithms on certain platforms to promote airdrops for their coins. After a surge in price, large holders of these tokens sell them off for huge profits, causing prices to plummet within hours.
Dear #Dogecoin, be extremely careful with the several tokens targeting the community, often directly (hijacking the Dogecoin tag or targeting specific events) or indirectly.
New tokens are created every day and pushed to this community. Most of these are short-term pump-and-dump…
— Mishaboar (@mishaboar) December 9, 2023
Warnings Against Airdrop Ads
Mishaboar advises the Dogecoin community to stay away from any advertisements or posts that encourage them to participate in “airdrops” for free tokens. He expresses surprise that certain platforms still allow ads containing these keywords. Mishaboar urges people to report these scammers and avoid falling for their schemes.
Dear #Dogecoin and newbies,
stay away from ANY ad or post encouraging you to get free “airdrops”. No exception.
I am even surprised @X is still allowing ads containing that keyword to run.
Report these scammers. Stay away.
When you see their posts, just say: pic.twitter.com/D4REI7WPlV
— Mishaboar (@mishaboar) December 10, 2023
Risks in the Crypto Space
The crypto space can be risky for investors, with various hacks and scams occurring. According to Certik, a blockchain audit company, November was the most damaging month of the year in terms of losses, with investors losing around $363 million to exploits, hacks, and scams. Pump and dump schemes alone accounted for approximately $1.1 million in losses.
Combining all the incidents in November we’ve confirmed ~$363M lost to exploits, hacks and scams
This makes November the most damaging month this year
Exit scams were ~$1.1M
Flash loans were ~$45.5M
Exploits were ~$316.4M
See more details below
pic.twitter.com/QoDy6d8IJH
— CertiK Alert (@CertiKAlert) November 30, 2023
The Future of Dogecoin
Dogecoin recently surpassed the $0.1 level for the first time this year and has been trading around that price range. Currently valued at $0.1, DOGE has seen a 17.45% increase in the past seven days, and on-chain metrics suggest a potential further price increase to $0.15.
Hot Take: Staying Vigilant Against Scam Tokens in the Dogecoin Community
The Dogecoin community must remain cautious amidst the growing prevalence of scam tokens specifically targeting its members. These “pump and dump” schemes, disguised as legitimate investments, pose a threat to unsuspecting buyers who may suffer financial losses when the scammers dump their coins. Mishaboar’s warnings about scam tokens manipulating algorithms and promoting airdrops serve as crucial reminders to avoid falling for these deceptive tactics. As investors navigate the crypto space, they should also be aware of the risks associated with hacks and scams. By staying vigilant and reporting suspicious activities, the Dogecoin community can protect itself and foster a safer environment for all participants.
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