The crypto industry has witnessed its fair share of scams, prompting various networks to enhance their security measures. However, scammers continue to evolve and find new ways to exploit vulnerabilities. Recently, an individual managed to acquire more than 160 Ethereum [ETH] worth $315,000. This was done through a crafty scheme involving the creation and subsequent abandonment of meme coins.
On Twitter, Lookonchain issued a warning to the community regarding the scammer’s activities. The network specifically identified four meme coins, TOMMY, KSI, ZUCK, and BILL, and flagged them for their involvement in the fraudulent scheme.
The entire scam was carried out in a particular method. The scammer would create a meme coin using a small quantity of ETH. Following, they offered liquidity to gain the trust of investors. Once a significant amount of investment was obtained, the scammer would remove the liquidity, essentially pocketing the invested funds for their own benefit.
As depicted in the tweet, the scammer’s initial investment for creating the TOMMY meme coin involved 1.5 ETH. This was valued at $3,200 during the withdrawal period. The funds were acquired from the crypto exchange KuCoin. However, the scammer’s scheme proved successful, resulting in them ultimately absconding with 28.7 ETH. This further represented a notable return of 1,813%. A similar scheme was used with KSI, ZUCK as well as BILL. Through these, the scammer pocketed 140 Ethereum.
Subsequently, the scammer introduced two additional meme coins called WALTER2.0 and GIGA2.0 and provided liquidity for these tokens as well. However, there have been no reports of any withdrawals made thus far.
Also Read: Man Makes $1 Million in Meme Coins: Trades Pepe Coin, 100+ Other Tokens
Rise of meme coins a boon or a bane?
In recent years, there has been a significant surge in the number of meme coins. Alongside the influx of canine-themed tokens, the market experienced a notable increase in meme tokens. This trend in meme coin popularity also had a positive impact on the overall trading volume of the market.
There has been a significant surge in meme coins’ trading volume. The numbers have witnessed a sharp increase, especially after the launch of the PEPE coin.
Also Read: PEPE 2.0: Investor Turns $12K to $1 Million in 10 Days