Following the TRUMP meme coin’s $72 billion debut, the crypto market was hit with a flood of scams, as 6,800 fraudulent tokens and 91 fake dApps rapidly appeared, analysts say.

What starts with a surge of excitement can quickly turn into chaos. The launch of the Official Trump (TRUMP) meme coin in January not only captured the crypto community’s attention but also opened Pandora’s box as fraudsters eager to exploit the hype, overwhelming the market with fake tokens and harmful applications.

On Jan. 17, President Donald Trump debuted his meme coin marketed as a unique opportunity to express “support for, and engagement with, the ideals and beliefs” embodied by the symbol TRUMP, according to the meme coin’s official website, which was also featured on Trump’s announcement on X.

Within just 48 hours of its release, TRUMP achieved a market cap of $72 billion, creating a “perfect storm for fraud,” analysts at Israel-headquartered blockchain forensic firm Blockaid say. However, this surge attracted not only speculators seeking to earn quick bucks but also malicious actors who sought to take advantage of the frenzy.

The blockchain firm revealed in a research report that scammers wasted no time in capitalizing on the buzz surrounding the token’s release. These malicious actors quickly flooded the market with fake tokens, hoping to deceive investors who were eager to jump on the bandwagon.

The report shows a 206% increase in tokens using the “Trump” name on the launch day, from 3,300 to 6,800 tokens. These scammers created numerous tokens that were designed to mimic the TRUMP meme coin, making it difficult for investors to distinguish legitimate assets from fraudulent ones.

A Blockaid spokesperson told crypto.news that scammers began making it “increasingly difficult for investors to distinguish between legitimate tokens

Go to Source to See Full Article
Author: Denis Omelchenko