Yet Another Meme Token Accussed of Defrauding Investors
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.
READ MORE: Arthur Hayes Forecasts a Rollercoaster 2023 with a Strong Bitcoin Rally
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.
Alexander Stefanov
Reporter at CoinsPress
Alex is Editor-in-Chief of Coinspress and co-founder of Millennial Media Group, with nearly a decade of experience covering financial markets - crypto first, then everything else. It started in 2016 with Bitcoin. Like most people at the time, he didn't fully understand it - so he kept digging. Blockchain, tokenomics, the projects, the cycles. That curiosity never stopped, and eventually pulled him into traditional markets too: equities, commodities, macro. Not because he left crypto behind, but because you can't properly understand one without the other. What drives him is straightforward: he wants to know why something is happening, not just that it's happening. Most market coverage stops at the headline - price up, price down, here's a chart. Alex finds that kind of reporting actively unhelpful. If you walk away from an article without understanding the mechanism behind the move, what did you actually learn? He holds a degree in Tourism from New Bulgarian University - not the most obvious path into financial markets, but markets have a way of pulling in people who are simply too curious to stay out. He has authored over 200 in-depth analyses and more than 10,000 articles across crypto and traditional finance. He still thinks every day in markets teaches him something new. That's probably why he hasn't stopped.
