Memecoins have produced numerous millionaires but also caused huge losses due to scams known as rugpulls.
WSB Coin, the “official unofficial memecoin of r/wallstreetbets subreddit,” recently rugged for 334 ETH ($649K) after the team falsely claimed they had no token allocation.
YODA Coin rugged shortly after launching its token, stealing 68 ETH worth approximately $130K from users.
Jugs showed promising signs but was rugged by the founders and influencers, causing turmoil on Twitter. It is important to do thorough research before investing in any memecoin.
Don’t Be A Victim of Memecoin Rugs
Memecoins remains one of the main sources of “generational wealth” in the crypto space. These tokens and protocols, designed to mimic several memes or any funny idea captured in an image, have produced numerous millionaires and simultaneously wrecked many in the industry.
Recently, $PEPE, $MONG, $WOJAK, $AIDOGE, and more have recorded huge gains despite having no core utilities. This is due to the hype in the memecoin ecosystem. As such, there have been a few cases of scams, otherwise called rugpulls.
These scammers have negatively tapped the memecoin hype and enticed desperate investors looking to flip $20 into millions. This article will look at the most recent memecoin rugs, which have crippled many investors in the Decentralized Finance (DeFi) space.
WSB Coin ($WSB)
WSB Coin, according to its website, is the “official unofficial memecoin of r/wallstreetbets subreddit.” The memecoin, built on the Ethereum network, launched on May 2. Notwithstanding some controversies, the token’s launch successfully recorded over $100M in transactions within the first 24 hours.
The first controversy started with the name WSB. According to several reports, the WSB coin was impersonating another protocol, but the team did well to downplay the rumours with Twitter spaces not long before d3ploy detected some questionable activity in the project’s smart contract.
The security firm said the WSB team rugged for 334 ETH ($649K). This occurred after the team disclosed that they have no token allocation, instead reserving 10% of coins for the subreddit. The team’s statement was proven false by a Twitter user, Eric Cryptoman, after identifying a wallet with 10% of the token’s supply, dumping tokens.