Scammers capitalize on TRUMP memecoin to deploy thousands of fake tokens

Blockchain security firm BlockAid has identified over 200% increase in the number of scam tokens named after Donald Trump after the launch of his official memecoin. The firm’s latest report disclosed that scammers deployed 6,800 tokens containing Trump’s name on the same day of the launch.

This represents a 206% increase in the number of tokens bearing the president’s name already in the market. With these new tokens launched by scammers to capitalize on TRUMP’s momentum, BlockAid observed that they also used malicious branding to deceive investors into thinking they were the real deal.

Beyond launching fake tokens with Trump’s name, the analysis also shows that the scammers created tokens using the names of other first family members, including Melania and Barron, to exploit the incident. Overall, the number of tokens that contain metadata referencing the Trump family increased by 592% during the period.

Interestingly, one of the fake BARRON tokens created rose as high as $450 million in market cap before crashing. It is now down more than 95% from its peak.

Beyond the proliferation of fake tokens after the launch, scammers also deployed several malicious decentralized applications using the Trump brand to capitalize on the moment. Ninety-one fake dApps were launched within 24 hours of the TRUMP memecoin launch, representing a 14x increase.

Scammers used popular X accounts to promote fake tokens

Meanwhile, some bad actors also tried to capitalize on the TRUMP memecoin launch by promoting new tokens that they claim are affiliated with Donald Trump. In one of the instances, an account on X that shares Trump posts from Truth Social, TrumpDailyPosts, promoted several fake memecoins.

There are reports that the account was compromised to share contract addresses and fake screenshots that show Trump endorsing POWER and WIN tokens on Truth Social. However, some believe the account deliberately posted the scam tokens.

While some scammers tried to capitalize immediately on the Trump launch, some bad actors also tried to exploit speculation that the Trump team would launch more tokens. One account on X claimed that the next token from the team would be a USA coin, which will launch on January 24.

However, Trump’s son, Eric Trump, quickly quashed the rumors by posting, “$USA coin has nothing to do with us.” There were also unsubstantiated rumors that more Trump-related coins would launch on Ethereum.

BlockAid calls for improved security in crypto

With Trump now sworn in, the hype that fueled his memecoin rise to a peak of $75 appears to have subsided, and the token is now at $44. While there have been many reports about those who made millions or lost fortunes on the TRUMP token, the number of users who lost through scam tokens is unknown.

Nevertheless, BlockAid noted that the incident highlights the wide security gap in the crypto sector and shows how scammers will capitalize on the fear of missing out (FOMO) to exploit vulnerable users through scam tokens and malicious dApps.

It said:

“Public interest, combined with the controversial figure behind the brand, meant that people rushed to buy in—often without proper due diligence. Scammers capitalized on this frenzy.”

The platform has now called for the crypto industry to prioritize security on the developer end. While most blockchain security experts have preached eternal vigilance and caution for users, BlockAid notes that this is not a realistic solution and that it is better for crypto developers and crypto firms to address the problem as solving security issues will boost adoption.

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