As the popularity of the Pepe memecoin continues to grow, scammers have taken notice, leading to a significant increase in fraudulent activity within the crypto space.
PeckShield, a blockchain security firm, has reported that in just the last three days, there have been at least ten memecoin scams. Scam tokens with their liquidity removed have been detected and reported, leaving investors in the lurch.
Fake Pepe sites and Twitter accounts emerge
Cybersecurity company CertiK has warned about a fake Pepe site claiming to offer rewards, alerting the community that the website is linked to a phishing contract. At the same time, fake Pepe claim sites have become more common on Twitter.
The official Pepe community Telegram group has not been spared either, with occasional posts from fake accounts attempting to redirect users to various websites. Active members of the channel have been diligent in reporting and banning users suspected of promoting scams.
The creators of the Pepe token have repeatedly urged the community to avoid connecting their wallets to suspicious pages offering airdrops and giveaway claims. They have also emphasized that they are not affiliated with any other tokens or projects.
Pepe’s meteoric rise and subsequent controversies
On May 5, Pepe achieved a $1 billion market capitalization following its listing on Binance. The token experienced a staggering surge of over 4,000% since its creation in mid-April, reaching a total market cap of $1.82 billion. However, its market capitalization plummeted by over a billion dollars just days after reaching its peak.
The token has faced its share of controversies as well. Crypto exchange Coinbase recently warned users that Pepe has been “co-opted as a hate symbol by alt-right groups.” This announcement sparked a backlash from the Pepe community, with some demanding a retraction of the statement and threatening to close their accounts with the exchange.
