A well-known figure in the Dogecoin community has raised concerns about the growing number of scam tokens that specifically target Dogecoin community members. Mishaboar, a dedicated enthusiast of Dogecoin, has highlighted the community’s recent exposure to “pump and dump” scam coins, which aim to take advantage of Dogecoin’s popularity. These scam tokens are being created almost daily and attract unsuspecting buyers with the promise of significant gains, only to see their value crash after the scammers sell off their coins, causing a collapse in price.
Scammers Promoting Fake Tokens
In a recent post on social media platform X, Mishaboar warned community members about individuals using the Dogecoin tag or targeting specific events to lure unsuspecting victims.
The evolution of Dogecoin from its origins as the first meme token to recently celebrating its 10th anniversary has led to significant growth. The cryptocurrency has experienced various positive developments over its lifespan, including gaining support from well-known figures like Elon Musk, propelling it to the 9th spot in terms of market cap. Dogecoin’s popularity has also given rise to other meme tokens like Shiba Inu and PEPE, which have established their own ecosystems and garnered support from communities.
However, alongside its positive aspects, the meme token has also been the target of negative incidents, one of which involves dubious actors seeking to defraud members of the community. Several Dogecoin copycats and scam tokens have emerged over the years, leveraging the Dogecoin tag to encourage people to invest.
According to Mishaboar, advocates of these scam tokens manipulate X’s algorithm to promote airdrops for their coins. After experiencing a surge in price, large holders dump their tokens, make significant profits, and cause the prices to collapse within a few 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
“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,” he tweeted.
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
The cryptocurrency space can be perilous for some investors, as it is continually susceptible to various hacks and scam methods. According to blockchain audit company Certik, November witnessed the highest financial losses of the year, with investors losing approximately $363 million to exploits, hacks, and scams. About $1.1 million was lost specifically to pump and dump schemes.
#CertiKStatsAlert 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
What’s Next For Dogecoin?
DOGE finally broke the $0.1 level for the first time this year on December 6 and has traded around this region for the past few days. At the time of writing, DOGE is trading at $0.1, aiming to establish itself above this price level. The cryptocurrency has already seen a 17.45% increase in a 7-day period, and on-chain metrics indicate a potential further price increase to $0.15.
Image Source: surassawadee @ShutterStock
