Concerns regarding the growing number of scam tokens that target Dogecoin community members specifically have been voiced by a well-known figure in the community. An enthusiastic Dogecoin fan named Mishaboar claims that a number of “pump and dump” scam coins have recently targeted the community in an attempt to profit from Dogecoin’s rising popularity. These fraudulent tokens, which are produced virtually daily, entice gullible purchasers with the promise of enormous profits, only for the value to plummet once the scammers dump their coins, causing the market to collapse.
Mishaboar alerted the community to actors who use the Dogecoin tag or target particular events to lure unwary victims in a recent post on the social media platform X. Since Dogecoin became the first meme token and is now celebrating its tenth birthday, the community has grown astronomically. With the support of well-known figures like Elon Musk, Dogecoin has experienced a number of positive developments over its short existence, helping it rise to the ninth position in terms of market capitalization.
Other meme tokens like Shiba Inu and PEPE, which have grown to create their own ecosystems and a fan base, have been made possible by Doge’s popularity.
Negative aspects of the meme token, though, include dishonest actors attempting to defraud community members of their money. Over time, a number of scam tokens and imitations of Dogecoin have surfaced, using the Dogecoin tag trademark to lure investors in.
Mishaboar claims that those who support these scam tokens tamper with X’s algorithm to encourage airdrops for their coins. Large holders will sell their tokens after a price spike, walking away with enormous profits, and prices will crash within hours.
“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.
Some investors may find the cryptocurrency market dangerous due to the constant attacks and fraudulent schemes that target it. November was the worst month of the year for losses, according to blockchain audit company Certik, with investors losing about $363 million as a result of scams, hacks, and exploits. In particular, pump and dump schemes lost about $1.1 million.