$500 million lost through scam memecoins

When investing in memecoins, profits and losses are often close together. However, sometimes investors have no choice, especially when it comes to scam memecoins, where everyone loses.

According to a recent report of Merkle Science, the financial loss caused by fraudulent crypto projects in the past year amounts to more than US$500 million. Scammers are becoming increasingly sophisticated in their methods. One of the most common forms of fraud falls under the category of social engineering, with social media accounts of well-known individuals being hacked remarkably often to promote the coins.

One of the more famous incidents involved the hack from the X account of soccer star Kylian Mbappé. Profiles of Neymar Jr. and Oliver Stone, among others, were also affected.

The report shows that 75 percent of all attacks took place on X and 19 percent via YouTube. These figures highlight the vulnerability of platforms when it comes to promoting questionable cryptocurrency.