Yet another scandal has come to light in the ever-evolving landscape of cryptocurrency. Cryptocurrency investigator, ZachXBT, has leveled serious accusations against the $VIRAL meme coin. The damning charge? Scamming naive investors of a staggering 131 ETH, approximately $242,000. This case is a stark reminder of the risks tied to meme coins. It highlights the manipulative strategies involving using verified badges to bait unsuspecting investors.
ZachXBT’s Revelation and $VIRAL’s Deceptive Tactics
The details of this alleged fraud were unearthed by ZachXBT, a well-respected figure within the crypto community, who took to Twitter to expose the deceitful practices surrounding the meme coin. The dubious plot involved an account by the name of @WandaNaraCrypto, which the $VIRAL token project purported was endorsing them.
What added fuel to this suspicious fire was the revelation that the endorsement was, in fact, a ruse. Famous Argentine model Wanda Nara, supposedly the face behind the endorsement, denounced it publicly, accusing the account of identity theft.
As per ZachXBT’s shared screenshots, the fake endorsement, riding on the wave of $VIRAL’s virality, successfully hoodwinked investors into contributing 131 ETH, a figure equivalent to a staggering $242,000.
The Alluring Trap of Meme Coins
The announcement tweet of the pre-sale of the coin served as a honey trap, drawing in scores of investors unaware of the scam’s lurking presence. In addition, deceptive practices, such as using a verified badge and username resembling Wanda Nara’s real account, were instrumental in perpetuating the belief of a legitimate endorsement.
Countless investors, hoping for a lucrative return, fell into this trap, believing they were part of a trustworthy investment opportunity.
The Aftermath of the $VIRAL Scandal
Following the scam’s exposure, the team behind the Viral ERC-20 token responded by offering refunds. In addition, the creators of $VIRAL, acknowledging the doubts and uncertainty caused by their actions, pledged their commitment to resolve issues and regain the community’s trust. To that end, they unveiled a new roadmap to relaunch an improved project.
Despite these promises, several users said they had not received any refunds. Meanwhile, certain accounts persistently continued to promote the meme coin.
The Importance of Prudent Investing
ZachXBT’s expose has spotlighted the often-overlooked dangers of investing in meme coins. His findings emphasize the need to differentiate between legitimate and dubious ventures, particularly when the meme coin market is witnessing skyrocketing growth.
The $VIRAL case underlines the vital importance of exercising caution and making informed decisions, mainly when dealing with projects associated with factors like centralized token supply, questionable actions by key stakeholders, and potentially deceptive marketing tactics.
Identifying Red Flags in Cryptocurrency Investments
The concentration of token supply, mainly when held by a small number of wallets, should raise alarm bells about limited liquidity. Moreover, investors planning to invest large amounts into meme coins or other tokens should be vigilant for any signs of collaboration among major holders.
While stories of traders accumulating vast wealth from minimal investments during meme coin launches frequently make headlines, skepticism should prevail when tokens become viral on social media platforms without demonstrating intrinsic value.
None of the information on this website is investment or financial advice. CryptoMode is not responsible for any financial losses sustained by acting on information provided on this website.