Crypto Market Flooded with Scams Following TRUMP Meme Coin Debut

The launch of the Official Trump meme coin in January sparked a frenzy in the crypto market, with the coin reaching a market cap of $72 billion within just 48 hours of its release. However, this surge in popularity also attracted malicious actors who sought to take advantage of the hype, resulting in a flood of scams and fake tokens.

Scammers Capitalize on TRUMP Hype

According to a report by blockchain forensic firm Blockaid, scammers quickly flooded the market with fake tokens and malicious decentralized applications (dApps) in an attempt to deceive investors. The report revealed a 206% increase in tokens using the “Trump” name on the launch day, from 3,300 to 6,800 tokens.

A Blockaid spokesperson noted that scammers made it “increasingly difficult for investors to distinguish between legitimate tokens and malicious ones.” Oz Tamir, the research and development lead at Blockaid, added that this challenge is not unique to TRUMP, and that “in almost every major web3 launch, our team sees how threat actors are creating projects that mimic the branding and excitement of the real tokens, creating confusion and exposing users to significant risks.”

Fake Tokens and Malicious dApps on the Rise

The report also noted that the number of fake dApps saw a sharp increase following the launch, with impersonator dApps rising 14x and more than 90 fake applications appearing in just 24 hours. Additionally, tokens referencing members of the Trump family, such as “Melania” and “Barron,” surged by hundreds of percent, giving the impression of a network of tokens tied to the Trump brand.

Tamir noted that the biggest spike in fake tokens was noticeable on Solana, especially during this launch, given the prevalence of meme coins on the network. However, he also stated that EVM networks like Ethereum have consistently been a hotspot for scams as well, including both fake tokens and malicious dApps targeting EVM users.

Protecting Users from Scams

In response to the surge in scam activity, Blockaid has been trying to prevent users from interacting with malicious tokens and fake dApps. Since the launch of the TRUMP token, the firm has blocked hundreds of users from engaging with fraudulent assets.

Tips for Avoiding Scams in the Crypto Market

To avoid falling victim to scams in the crypto market, users should:

  • Be cautious of tokens with unusual or unverifiable origins.
  • Verify the authenticity of tokens and dApps before investing.
  • Be aware of phishing scams and never provide personal or financial information to unknown sources.
  • Use reputable exchanges and wallets to store and trade cryptocurrencies.

“In almost every major web3 launch, our team sees how threat actors are creating projects that mimic the branding and excitement of the real tokens, creating confusion and exposing users to significant risks.”

– Oz Tamir, Research and Development Lead at Blockaid

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