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The $VIRAL Meme Coin is being accused of scamming investors and causing a loss of 131 ETH, equivalent to $242,000.
Crypto influencer ZachXBT raised fraud allegations against the coin on Twitter, pointing out that an account named @WandaNaraCrypto was falsely using the identity of Argentine model Wanda Nara to deceive investors.
The scam managed to raise a significant amount of money by promoting the meme coin and exploiting its viral popularity. Investors were tricked into believing that the project was endorsed by the real model.
After the scam was exposed, the creators of $VIRAL announced their intention to initiate refunds and expressed regret for the events that raised doubts about their project. They promised to address concerns and restore trust by relaunching an improved project.
However, some users claimed they had not received any refunds, and there were accounts that continued to hype the meme coin despite the allegations.
In light of such incidents, it is important for investors to exercise caution and careful research before investing in meme coins. Centralized token supply, suspicious actions by key holders, and deceptive marketing strategies are red flags that should be considered.
Exercise Caution: Beware of Meme Coin Scams and Limited Liquidity
Investors should be wary of projects with a concentrated token supply held by a small number of wallets, as it can lead to limited liquidity. It is also advisable to be skeptical of meme coins that gain popularity on social media without demonstrating any inherent value.
Crypto influencer ZachXBT has previously uncovered numerous meme coin rug pulls and instances of scammers deceiving investors. These incidents highlight the need for careful evaluation and scrutiny when participating in the meme coin market.
Recently, there has been a decline in trading volume for meme coins, leading to price declines for coins like PEPE and Wojak. This indicates that the meme coin landscape is undergoing significant changes.
In conclusion, investors should approach meme coin investments with prudence, conduct thorough research, and make educated decisions. Awareness of potential scams and warning signs is crucial to avoid falling victim to fraudulent projects.
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