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Crypto influencer ZachXBT has accused $VIRAL Meme Coin of defrauding investors out of 131 ETH, raising concerns about another meme coin scam utilizing a verified badge to deceive unsuspecting individuals.
ZachXBT took to Twitter to expose a scam involving the VIRAL token project and an account named @WandaNaraCrypto. The project falsely claimed endorsement from Argentine model Wanda Nara. Screenshots shared by ZachXBT revealed that the real Wanda Nara had complained about another account impersonating her, which exploited the viral popularity of the VIRAL project to raise over 131 ETH (approximately $242,000).
A meme coin scam @WandaNaraCrypto with a gold checkmark impersonated the Argentine model @wanditanara and raised over 131 ETH ($242k).
0x649cc59160b296f75a443276fEc8CEA1EbE448a9 pic.twitter.com/bgknbjuPq9
— ZachXBT (@zachxbt) May 28, 2023
The scam involved promoting a meme coin by leveraging a verified badge and a username similar to the real model’s account, tricking people into believing the endorsement was legitimate.
Unfortunately, many investors fell for this scam, thinking they were participating in a trustworthy investment opportunity.
Following the exposure, the creators of $VIRAL announced their intention to issue refunds and expressed remorse for the events that caused doubts about their project. They assured the community of their commitment to address concerns and rebuild trust, unveiling plans for an improved project relaunch.
However, some users claimed they had not received any refunds, and certain accounts continued to promote the meme coin despite the allegations.
ZachXBT highlighted instances where customers unknowingly financed dubious projects using their CEX accounts, emphasizing the importance of distinguishing between legitimate and questionable initiatives, especially in the rapidly growing meme coin market.
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Investors should exercise caution when considering investments, particularly in projects with centralized token supply, suspicious actions by key holders, and potentially deceptive marketing strategies. Prudence, research, and informed decision-making are crucial when evaluating such ventures.
The concentration of token supply, especially when a few wallets hold a significant share, raises concerns about limited liquidity. Additionally, users planning to accumulate large amounts of meme coins or any tokens should be alert to warning signs of potential collaboration among major holders.
The meme coin landscape has experienced significant changes recently, with a 25% decline in trading volume. Meme coin enthusiasts are selling off their holdings, leading to substantial price declines for previously profitable coins like PEPE and Wojak.