The hype surrounding meme coins shows no signs of subsiding. While leading players like Dogecoin and Shiba Inu appear to be taking a back seat, newer entrants such as Baby Doge Coin and Floki Inu are stepping up to the plate.
Moreover, the launch of Pepe coin, a new meme coin in mid-April, has further fuelled excitement within the community, with some investors reportedly earning millions in profits from trading.
Unfortunately, this trend has also attracted the attention of scammers who have created several counterfeit coins to dupe unsuspecting investors. According to ZachXBT, an on-chain investigator, the scammer has launched approximately 114 meme coin scams in the past 1.5 months alone. In most instances, the stolen funds from the scam have been funneled to the same deposit address.
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ZachXBT disclosed that there might be even more counterfeit coins in circulation, as the 114 scams he identified were just those sent to that particular deposit address.
Coinbase Wallet Accused of Involvement in Scam
ZachXBT refrained from disclosing the total amount that the suspected scammer had siphoned. Moreover, the independent blockchain investigator tweeted that the profit calculation process was made more complex due to the following reason:
According to ZachXBT, the scammer has been depositing funds using a Coinbase wallet address. When asked why the exchange has not been able to detect this, ZachXBT suggested that the scammer may be depositing smaller amounts at a time, making it more difficult to identify.
He also added that it was unclear why the scammer would choose to use Coinbase, as other exchanges are more suited for money laundering.
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ZachXBT recently uncovered another scam related to tattoos. Gabriel Marques, a Twitter user, allegedly created a meme coin to deceive legitimate Nakamigos NFT project holders. ZachXBT disclosed that the wallet address involved in the scam was tattooed on Marques’ back and managed to rake in 60 ETH, worth approximately $110,000.
In a warning to users, ZachXBT tweeted that he was growing weary of influencers promoting coins with less than $100,000 liquidity. He cautioned users to be wary of meme coins and to assume that they may fall prey to insider trading or scams.