Fraudsters are taking benefit of the popularity of new meme currencies attached to Donald and Melania Trump, developing false websites to steal from consumers. These scams convince victims to offer wallet information, such as seed words, putting their money in danger. The Russian cybersecurity company F.A.C.C.T. warns of these risks, highlighting how criminals profit from the hype.
Tokens like TRUMP and MELANIA faced high initial trading volumes but remain volatile. Experts expect an increase in celebrity-backed memecoins, increasing ethical difficulties. This expanding capacity illustrates both the benefits and threats in the quickly changing Bitcoin sector.
Scammers Exploit Trump Meme Coins
According to the Russian cybersecurity firm F.A.C.C.T. (previously Group-IB), fraudsters have taken benefit of the increasing popularity of meme coins associated with US President Donald Trump and his wife, Melania, to develop over ten phoney websites.
These websites impress consumers by erroneously recommending that they must link their wallets to be approved for TRUMP and MELANIA token transactions. This wave of fraud highlights the hazards linked with the rapidly expanding meme coin business.
Scammers Steal Using Meme Coins
Maria Sinitsyna, senior analyst at Digital Risk Protection at F.A.C.C.T., determined the strategies used by scammers:
“The official token address is shown on all websites; however, when connecting, the victim is asked for the seed phrase from the wallet. Fraudsters can even 'hijack' a cryptocurrency wallet by linking malware to withdraw payments.”
Sinitsyna also pointed out the unfair use of these tokens' popularity. The company's experts warned: "While Donald Trump and Melania compete in the success of their cryptocurrencies, fraudsters are making money on both of them."
The memecoin market, established by tokens such as Dogecoin (DOGE) and Shiba Inu (SHIB), has increased rapidly, frequently fuelled by celebrity endorsements. TRUMP launched on January 17 with $11 billion in trading volume on its maiden day, followed by MELANIA two days later. After initial enthusiasm, both tokens had high volatility.
Celebrity Memecoin Trend Grows
Arthur Hayes, former CEO of cryptocurrency exchange Bitmex and a well-recognized person in the cryptocurrency business, has predicted a larger "meme coin explosion", such as additional celebrities. "Memecoins are the outstanding fan engagement tool ever created," Hayes tweeted.
He went on to claim, "If Trump does it, it makes it less dangerous for Beyoncé or Swift to do the same. Get ready your buttocks for the memecoin explosion." His comments indicate the growing convergence of celebrity culture and cryptocurrencies, developing arguments about the ethics and long-term implications for the industry.