Memecoin investments have become increasingly popular in the crypto world as innovative projects sprout around them looking to revolutionize the way digital assets are created, shared, and stored. However, with immense profitability opportunities also come extremely high risks as scammers take advantage of the lax compliance regulations existing in this space. Recently, the crypto ecosystem has seen the emergence of numerous ‘rug pulls’ with scam tokens bilking unsuspecting crypto investors of their hard-earned money.

These unscrupulous projects imitate the traditional memecoins, with false mission statements and false claims of guaranteed profits, fooling investors and stealing their money. One of the most common techniques used is ‘airdrop-rugpull’. Scammers typically airdrop a huge number of tokens to the public, but then suddenly withdraw the liquidity, leaving token holders with no way to trade their holdings.

Similarly, a known meme-based token -LADYS- from the NFT Milady collection became a major brewing case after the re-surfacing of the token. Scammers created their own token currency copycatting all the real LADYS token’s properties, and again, tricked innocent investors into investing into the malicious clone, just to vanish later leaving all the investors with nothing.

Therefore, investors must be cautious at all times when dealing with memecoins investments, as these types of scams are incredibly difficult to detect in their early stages. Apart from thoroughly examining the project, the team behind it and the underlying technology, one must be extra careful when dealing with airdrops.

Investors should always look out for signs that a certain project or token may actually be a rugpull scam, and should always take the appropriate steps to protect their investments, such as investing only the amounts they are willing to lose, diversifying their portfolio of investments, and research all information available about the project.



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