Crypto influencer ZachXBT has raised fraud allegations against $VIRAL Meme Coin, accusing it of scamming investors out of 131 ETH.
This incident alleges another case of a meme coin utilizing a verified badge to deceive unsuspecting investors.
Another Meme Coin Scam?
Crypto influencer ZachXBT took to Twitter to expose the meme coin scam involving an account named @WandaNaraCrypto. The VIRAL token project claimed to be endorsed by Argentine model Wanda Nara.
According to screenshots shared by ZachXBT, model Wanda Nara used the microblogging site to complain about it. She noted that another account was falsely using her identity. Exploiting the viral popularity of the VIRAL project, the scam managed to raise over 131 ETH, equivalent to an estimated $242,000.
The pre-sale announcement tweet for the reported coin gained significant engagement, attracting unsuspecting investors. The scam reportedly involved the fraudulent promotion of a meme coin, leveraging the verified badge and username similarities with the real model’s account to trick people into believing the endorsement was legitimate. If it were a scam, many have already fallen into the con. Many investors think they are participating in a trustworthy investment opportunity.
Following the exposure, the page associated with the Viral ERC-20 token announced its intention to initiate refunds. The creators of $VIRAL expressed remorse for the events that raised doubts and uncertainty about their project. They assured the community of their commitment to addressing concerns and restoring trust, unveiling plans for an improved project relaunch.
Despite these promises, some users claimed they had not received any refund, while other accounts continued to hype the meme coin.
Investors Should Exercise Caution
ZachXBT highlighted instances where customers unknowingly funded dubious projects using their CEX accounts. It underscores the importance of distinguishing between legitimate and questionable initiatives, especially when the meme coin market has seen exponential growth.
It is crucial to exercise caution when considering investments. This is especially true for projects characterized by factors like centralized token supply, suspicious actions by key holders, and potentially deceptive marketing strategies. When considering investing in such ventures, people need to use prudence, research, and make educated selections.
The concentration of token supply, particularly when a small number of wallets hold a significant share, raises concerns about limited liquidity. Additionally, if users plan to amass big amounts of meme coins or any tokens, they should look for any warning signs of possible cooperation among the principal holders.
Stories of traders allegedly amassing significant wealth from small investments are frequently heard during such meme coin launches. However, being skeptical of tokens that have gone viral on social media without demonstrating any inherent value is advisable.
TRON CEO Justin Sun recently joined the meme coin trend, and scammers quickly flooded his public account. Other recent research from ZachXBT uncovered 114 meme coin rug pulls in the span of just 45 days that deceived investors.
The meme coin landscape is experiencing significant changes due to a 25% decline in trading volume in recent weeks. Meme coin enthusiasts are now selling off their holdings, leading to substantial price declines for previously lucrative coins such as PEPE and Wojak.
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