Halloween, celebrated on October 31, scares off cryptocurrency investors. Three of them lost all their value after developers ran a scam called ‘rugpull’ or ‘rugpull’ in English.
Although they are small currencies traded only through decentralized brokers, the sum of the scams exceeds the range of R$1.2 million, each corresponding to an average of 45 ETH (R$410,000).
One of the scammers’ main pitfalls seems to have been the use of names identical to those of legitimate projects on the market.
Memecoin (MEME) drops to zero in seconds
The first cryptocurrency to drop to zero was Memecoin (MEME), which some unwary investors may have confused with another currency. This is because another cryptocurrency with the same name was already on the rise this week after Binance listed MEME on its platform.
To be clear, the Memecoin (MEME) associated with the scam is a third coin in addition to these two. In other words, there are so many coins with the same name that you have to be careful when purchasing.
“Memecoin (MEME) on Ethereum is down 100%. O [endereço] 0xBd72 exchanged 4,854,740,126,240,000 MEME for 43.68 ETH (R$399,000)”wrote PeckShield. “Note: The Rugpull scam token has the same name as the legit tokens.”
#PeckShieldAlert #Slip Memecoin $MEME on #Ethereum has dropped -100%
0xBd72…5871 exchanged 4,854,740,126,240,000 $MEME for ~43.68 $ETH
*Notice #backpull token has the same name as the legitimate one pic.twitter.com/Ew9ZfIMzUl
— PeckShieldAlert (@PeckShieldAlert) October 30, 2023
Another “MEME” was also targeted by scammers
Called Memepad (MEMEPAD), another cryptocurrency with a similar name, investors are also completely lost this Halloween. According to information from PeckShield, the scammers also exchanged 4.85 quintillion MEMEPAD for 44.84 ETH (R$409,000).
As in the previous case, MEMEPAD also pretended to be a cryptocurrency with the same name. Therefore, it may have caused victims who did not pay attention to this detail.
The third cryptocurrency to claim victims on Halloween
Finally, TitanX (TITANX) was the third cryptocurrency to pull the rug from under its investors. As in the previous two cases, this coin also bears the same name as a legitimate project.
“TITANX is down 100%. O [endereço] 0xBd72 exchanged 4,854,740,126,240,000 TITANX for 46 ETH (R$420,000).
#PeckShieldAlert #Slip TITANX $TITANX on #Ethereum has dropped -100%
0xBd72…5871 exchanged 4,854,740,126,240,000 $TITANX for ~46 $ETH
*Notice #backpull token has the same name as the legitimate one pic.twitter.com/de5GWJI4EV
— PeckShieldAlert (@PeckShieldAlert) October 30, 2023
While decentralized exchanges can provide good opportunities for investors, like cryptocurrencies that are still in the dark, it is important to remember that these platforms are often used by scammers.
Therefore, it is necessary to be extra careful when using it, especially during times of market excitement. Being calm while investing is always a good way to avoid these pitfalls.
Source: Live Coins
Barry Siefert is an accomplished journalist and author at The Nation View. He is known for his expertise in the field of cryptocurrency, and has written extensively on the topic. With a background in finance and economics, Barry has a deep understanding of the underlying technology and market forces that drive the crypto industry.
