TRUMP is the official president Donald Trump memecoin. It was launched on 17 Jan. and rose to $72 Billion in market capitalization within two days.
The crypto, backed by Donald Trump and his family, sparked a lot of public interest. It also became a target for scammers.
Web3’s Blockaid security firm released a report that highlighted how scams grew rapidly during the launch, as the bad guys took advantage of the chaos to create havoc.
Scam tokens surge
Scammers created 6,800 fake tokens with the Trump logo on the day of launch, compared to a daily average token production rate of 3,300.
Additionally, fake decentralized applications (dApps) proliferated, with 91 fraudulent dApps appearing within 24 hours—14 times the typical rate.
Scammers’ fraudulent activity went far beyond the $TRUMP token. Scammers also launched tokens with the names other Trump relatives, including “Melania”The’and “Barron,”Investors are misled into believing that they form part of an ecosystem.
Metadata referencing the Trump family spiked by 592%, reflecting the scammers’ sophisticated strategies amid the high-profile token launches.
Risks in decentralized ecosystems
The launch of $TRUMP exposed vulnerabilities in the decentralized cryptocurrency space where FOMO (fear of missing out) is often the driving force behind impulsive investing.
Scammers leveraged the token’s high-profile launch to trick users into connecting their wallets to malicious platforms or purchasing fraudulent tokens.
Blockaid has stressed the need for proactive security measures. The company has blocked scams from hundreds of its users through real-time detection.
In its report, the firm stated:
“Scams may emerge as crypto grows, but robust security ensures they don’t derail progress.”
Blockaid identified this in its report. In the Web3 environment, which is constantly evolving, it’s vital to have enhanced security tools that protect users while fostering trust.
Launch of the $TRUMP Token highlights two challenges digital assets face: they must enable innovation and address security concerns. Prioritizing safeguards will help the industry ensure safe and sustainable growth for their users.
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