Billionaire Elon Musk – owner of Tesla, SpaceX and now owner of Twitter – published in the early hours of Tuesday (01) on the social network an image of a Shiba Inu dog wearing a Twitter T-shirt and in front of a Halloween pumpkin, as a form of to celebrate the date. The photo also references the Dogecoin (DOGE) memecoin, “adopted” by him.
After the post, however, scammers created almost 200 tokens to take advantage of the lay investor with the classic ‘pump and dump’ scheme, which consists of inflating the price of an asset, selling the tokens and then abandoning the project.
To give you an idea, after the entrepreneur’s publication, dozens of illicit shitcoin projects emerged, such as ‘BabyDogeTwitter’, ‘SpaceTwitterDoge’, ‘ElonDogeTwit’. As Coindesk found out, the new wave of memes came from both Binance’s decentralized blockchain, BNB Chain, and the Ethereum network.
And scammers are not few. According to blockchain-based security firm PeckShield, nearly 200 cryptocurrencies have been created under the Elon/Doge/Twitter theme. A good part of that total had a price drop of up to 100% shortly after launch.
“More than 67 of these tokens are down 90% in the hours following their issuance, with 45 tokens down 100%. This has cumulatively led to losses of thousands of dollars among investors who bet on the newly issued tokens in hopes of a long-term price appreciation,” the company tweeted.
The company also detected 42 projects whose protocols allow permission changes, that is, the scammer can send all the linked assets to the portfolio he wants.
PeckShield’s information comes as no surprise, as illicit projects constantly appear. In March of this year, for example, pSHARE (PSHARE), the token of The Pulse DAO project, collapsed by more than 98% in just a few hours after its creator applied a rug pull move.
#PeckShieldAlert PeckShield has detected ～169 #DOGE contracts newly created on Ethereum and BSC. ~67 tokens' price dropped more than -90% (~45 tokens' price dropped -100%), 42 out of them appear to be #honeypot #Dogeween👻🎃 https://t.co/ZgUW6JJpIU pic.twitter.com/kUMFs73nu0— PeckShieldAlert (@PeckShieldAlert) November 1, 2022
Doge shoots 100% after Elon Musk announcement
Last weekend, another tweet from Musk also triggered a huge rise in the price of the DOGE, which jumped more than 100%, hitting the $0.15 mark, and at a time when the market was also experiencing growth after passing weeks stagnant.
The reason for DOGE’s rise was the news of the entrepreneur’s purchase of Twitter in a US$ 44 billion deal, which made the meme cryptocurrency the most valued in the entire market in the month of October.