Fueled by hype and hysteria, memecoins have quickly risen from an obscure and bizarre niche to a massive gambling vehicle that can make people millionaires overnight.
PEPE is the latest craze that has captured the imagination of some of the most insatiable degens in the space. This particular frog-themed coin is still rapidly growing as FOMO engulfs the market. However, this type of situation is a scammer’s best friend.
Crypto Twitter is filled with stories of how early investors in PEPE have become millionaires overnight. While PEPE has managed to bring about a memecoin renaissance, it has also led to the creation of numerous scam tokens over the past week.
According to the blockchain security firm, PeckShield, at least 10 memecoin scams have been created, including PEPEDOGE, PEPEC, WOW, MEME, FOUR, NEWPEPE, BENZ, BMW, POP, and BOBO. The creators of these flagged scam tokens have allegedly removed the liquidity and rug-pulled unsuspecting investors.
Scammers are also targeting PEPE investors. The Cybersecurity firm, CertiK, has issued a warning about a fraudulent PEPE site claiming to offer rewards and has stated that the website is linked to a phishing contract.
Fake accounts have also infiltrated the official community Telegram group of the memecoin, posting random links in an attempt to redirect users to fraudulent websites. The creators of the token have repeatedly urged the community to be diligent and warned against connecting their wallets to suspicious pages claiming to offer airdrops, staking, claims, mints, raffles, giveaways, etc.
Despite being hailed by the Twitter boss, Elon Musk, who recently shared a meme with PEPE the Frog on his Twitter handle, the memecoin has drawn its fair share of controversies. For one, US crypto giant, Coinbase, sent out an email newsletter to its customers describing the PEPE meme as a “hate symbol” co-opted by alt-right groups.
This led to a firestorm of criticism on Twitter, and the hashtag #deletecoinbase briefly trended on the social media site. The newsletter has since been edited, while Coinbase’s Chief Legal Officer, Paul Grewal, apologized for the mistake.