Memecoin: from scam dApps to twitter, the rug-pull is always lurking! Warning!!!

The era of meme coins marks a pivotal moment when the blockchain transforms into a battlefield, a PvP (Player Versus Player) arena where those who hold onto cryptocurrencies in their wallets stand to lose the most. In recent weeks, this phenomenon has exploded, attracting new investors (players?) worldwide. But who truly benefits? Could it be the developers themselves?

Creating a Meme Coin to Get Rich?

A recent example: the meme coin BOME (BOOK OF MEME) saw its market capitalization reach one billion dollars on launch day. This is an exceptional performance, especially considering that the four main developers/creators of BOME did not purchase a single token but pocketed a "small profit" of 21 million dollars. A classy move indeed.

So, who are the real winners of the meme coin season?
Certainly, their creators and a handful of insiders. Positions 5 and 6, for instance, saw traders invest over $400,000 each, generating profits exceeding $4 million. Looking at the top 10, only 3 wallet addresses made any investments.

As for the first "trader," who invested less than $10,000 in BOME, they rank 68th and turned their $8,338 into $872,000. How does one enter this highly profitable game from the outset? It's simple: just be the creator of the meme coin, a friend of theirs, or a Twitter influencer who promotes it in exchange for a share, then sells it off as soon as it rises.

Quick Scalping

In short, the world of meme coins isn't transparent, but it gets worse. There are temporary tokens, designed for quick scams, known as "scalping." Crypto scalping is a trading strategy aiming to profit from small price fluctuations. Scalpers executing this strategy make numerous trades per day, aiming to capture small gains on each trade.

However, here, scalping is at our expense. These tokens are created and exist for a period ranging from fifteen minutes to an hour, just enough time for the creator to make money. Take a look at the meme coins created an hour ago on DEX Screener:

The goal? The developer(s) hope that you'll invest even just €10 or €100, after which they withdraw all liquidity from the wallet at once. It's termed "rugpull" because it's like they're pulling the rug out from under you, leaving you with nothing but worthless tokens in hand.

Twitter Scams?

Another concerning trend is the new practice of creating a presale via Twitter. Users are invited to send crypto to a specific address, hoping for an enticing airdrop. Then there are accounts that "sell" the dream of making x1,000.

And if it seems too good to be true, know that such things happen every day. Funds were collected for the presale here, then the X account disappeared. A couple of examples.

Conclusions

In short, the crypto world is glossy and often delivers unimaginable profits, but it's also fraught with dangers. For every meme coin that achieves extraordinary results, there are at least another 100 that die within hours. This doesn't mean you shouldn't try. Beware of "unknown" projects, and above all, never send crypto to wallet addresses promising millionaire returns.

To date, the only ones certain to profit from meme coins are the developers: that much should be clear…