Due to hype and hysteria, memecoins went from an obscure and strange niche to a huge gambling vehicle that made people millionaires overnight.
PEPE is the latest sensation that has captured the imagination of some of the most insatiable degens in space. This particular frog themed coin continues to rise to dizzying heights as FOMO consumes the market. But the latter is a scammer’s best friend.
Crypto Twitter is ripe with stories about how early PEPE investors became millionaires overnight. While PEPE managed to bring about a memecoin renaissance, it also caused the creation of several scam tokens last week.
Blockchain security firm PeckShield observed the creation of at least 10 memecoin scams such as PEPEDOGE, PEPEC, WOW, MEME, FOUR, NEWPEPE, BENZ, BMW, POP, and BOBO. The creators behind the flagged scam token are allegedly draining liquidity and pulling unsuspecting investors under the rug.
Scammers also target PEPE investors. Cybersecurity firm CertiK issued a warning last week about a fraudulent PEPE site that claimed to offer rewards and warned that the website was involved in a phishing contract.
Fake accounts have also infiltrated the memecoin community’s official Telegram group, posting random links in an attempt to redirect users to fraudulent websites. Token creators back and forth CEBU the community to be diligent and warn against connecting their wallets to suspicious pages that claim to offer airdrops, staking, claims, mints, raffles, giveaways, etc.
Despite being praised by Twitter boss, Elon Musk, who recently shared a meme of PEPE the Frog on his Twitter handle, memecoin has garnered its fair share of controversies. For one, US crypto giant Coinbase sent an email newsletter to its customers describing the PEPE meme as a “symbol of hate” co-opted by alt-right groups.
This was followed by a firestorm of criticism on Twitter, and the hashtag #deletecoinbase started trending on the social media site for a while. The newsletter has since been edited while Coinbase’s chief legal officer, Paul Grewal, apologized for the accident.
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