Recently, a video showing how easy Memecoin is to create is now trending on Twitter, raising concerns about the potential for a rug pull.
How to do it #Memecoin just 27 seconds https://t.co/Idb5uHhDP5
— Kyptos (@azcoinnews) May 7, 2023
This video, which has reached 1.5 million views, was published by Whitelights developer Manifold studio and demonstrates how to create a Memecoin in just 27 seconds using OpenZeppelin’s Contracts Wizard. The creator of the video claims that Memecoin is only used for testnet and educational purposes.
memecoin deploy% speedrun 27s ️ pic.twitter.com/OYaXGb5ITR
— whitelights.eth ⌖ (🦇🔊) (@iamwhitelights) May 5, 2023
However, the ease with which Memecoins were created in such a short period of time has raised concerns about the possibility of pulling the rug. Rapping occurs when bad actors create large amounts of Memecoins to steal investors’ money. The ability to mint Memecoins in less than a minute gives bad actors more opportunities to steal investors’ funds.
The cryptocurrency industry has been affected by this development. CoinMarketCap reports that Memecoin minting has exploded, with over 500 Memecoins now held by more than 1,000 people. The rise in the price of PEPE and other memecoins has led many to say that memecoin season is back, and traders expect their prices to surge.
In April, digital artist Rhet Mankind used ChatGPT to create a Memecoin called TURBO, which now has a market cap of over $100 million. However, scammers are cashing in on the popularity of these coins.
Wu Blockchain analyst also recently Report Scammers are creating tokens of the same name as PEPE, TURBO, and other popular cryptocurrencies and trading them on Arbitrum. Then push it to the homepage of Dex Screener, DexTools and other platforms to attract users to buy. Then, when the price reaches a certain level, they sell to make a profit.
“The basic approach is to push these tokens of the same name to the front-end of custody platforms such as Dex Screener and DexTools by driving trading volume and increasing liquidity, attracting users to buy and sell, and then selling tokens in large quantities.” The market takes profit. “
The ease of creating Memecoins in such a short period of time has raised concerns about the possibility of pulling the rug. Investors need to exercise caution and do their due diligence before investing in any Memecoin to avoid falling victim to scammers.
The crypto industry needs to take steps to keep investors safe and prevent bad actors from exploiting the popularity of Memecoin.
- Why the memecoin craze could drive L2 adoption?
- This memecoin has grown by over 1,000% in just 7 days
Mr. teacher
according to Kyptos
