Eric Trump Meme Coin crashes in a $160 million rug pull, leaving investors with nearly worthless assets.
The crypto token named after Eric Trump collapsed instantly today due to what many are describing as a blatant "rug pull" type scam.
The meme coin's market capitalisation went from $160 million to just $30,000 in an instant, leaving investors with nearly worthless assets.
The Eric Trump-themed Coin Turns Out to be a Rug Pull
Rug pull scams are becoming increasingly common in the cryptocurrency world, with a specific increase in cases related to rapidly developed meme coins.
This case made headlines because the warning signs were visible well before the sudden collapse.
Blockchain data shows that, prior to this successful scam, the same scammer had already launched three other failed Eric Trump-themed token projects. In spite of the previous failures, this new version managed to attract investors and increased by 6.200% in a single day.
The rapid escalation of the token's value triggered a response from the blockchain analytics platform Bubblemaps, which warned investors with a public notice.
An investigation revealed that the distribution of the token was highly concentrated: most of the supply was controlled by a few wallets.
This made the token particularly vulnerable to rug pull attacks, as those few large holders could sell quickly, causing the price to collapse.
The launch of this digital asset linked to the former president sparked a flurry of Trump-themed meme coins, which attracted a great deal of attention in the marketplace due to the character's widespread public notoriety.
Fraudulent promotion of the Barron Trump-themed coin also emerged in February, as part of this broader trend involving other members of the Trump family.
The drastic decline of the Eric Trump-themed token illustrates the significant dangers of speculative investments in meme coins that exploit celebrities or political figures to gain visibility.
Despite obvious warnings and evidence on the blockchain revealing suspicious actions, the scam managed to attract large investments.
Financial scams so blatant are thriving to the point that they are putting the reputation and future of the entire cryptocurrency industry at risk.
The continued profitability of these schemes poses a threat to confidence in the digital asset market.
Investors should conduct thorough research and use extreme caution when considering investments in unstable and unverified digital currencies, as this episode demonstrates the very real dangers that exist.
Learn how to protect yourself from common scams in the crypto world: differences between Pump and Dump and Rug Pull, warning signs and defensive strategies.
CZ, former CEO of Binance, did not recognise a deepfake video with his own voice. Artificial intelligence replicates faces and sounds with dangerous accuracy.
The crypto token named after Eric Trump collapsed instantly today due to what many are describing as a blatant "rug pull" type scam.
The meme coin's market capitalisation went from $160 million to just $30,000 in an instant, leaving investors with nearly worthless assets.
The Eric Trump-themed Coin Turns Out to be a Rug Pull
Rug pull scams are becoming increasingly common in the cryptocurrency world, with a specific increase in cases related to rapidly developed meme coins.
This case made headlines because the warning signs were visible well before the sudden collapse.
Blockchain data shows that, prior to this successful scam, the same scammer had already launched three other failed Eric Trump-themed token projects.
In spite of the previous failures, this new version managed to attract investors and increased by 6.200% in a single day.
The rapid escalation of the token's value triggered a response from the blockchain analytics platform Bubblemaps, which warned investors with a public notice.
An investigation revealed that the distribution of the token was highly concentrated: most of the supply was controlled by a few wallets.
This made the token particularly vulnerable to rug pull attacks, as those few large holders could sell quickly, causing the price to collapse.
Eric Trump Coin Bundling - Source: Bubblemaps
The launch of this digital asset linked to the former president sparked a flurry of Trump-themed meme coins, which attracted a great deal of attention in the marketplace due to the character's widespread public notoriety.
Several tokens entered circulation soon after, including one in Melania Trump's name.
Fraudulent promotion of the Barron Trump-themed coin also emerged in February, as part of this broader trend involving other members of the Trump family.
The drastic decline of the Eric Trump-themed token illustrates the significant dangers of speculative investments in meme coins that exploit celebrities or political figures to gain visibility.
Despite obvious warnings and evidence on the blockchain revealing suspicious actions, the scam managed to attract large investments.
Financial scams so blatant are thriving to the point that they are putting the reputation and future of the entire cryptocurrency industry at risk.
The continued profitability of these schemes poses a threat to confidence in the digital asset market.
Investors should conduct thorough research and use extreme caution when considering investments in unstable and unverified digital currencies, as this episode demonstrates the very real dangers that exist.
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