Essential knowledge for navigating the memecoin space safely
New to memecoins? You must know these types of scams to protect yourself.
Classic scams that have been around for many years
These usually involve a fake or hacked account asking for your seed phrase, convincing you to connect your wallet to their site, or asking you to download malicious software.
The scammers will try hard to convince you that they are legitimate, and some even spend months building trust before scamming. This is common and most people are aware of it.
Basic Rule: Never connect your wallet to an unknown site and never trust random DMs.
Sophisticated schemes that have evolved with the rise of memecoins
Pump and dump scams are not new, but they have become more sophisticated with the rise of memecoins.
Many TikTok crypto accounts promoted it as Trump's secret memecoin. They created a "hype date" and transferred coins to Trump's wallet to make it look legitimate. All TikTok KOLs followed the same script.
Their targets were new crypto investors, which is why they chose TikTok instead of Twitter, since on Twitter more people would call out the lies.
Most KOLs engage in pump and dumps. Some show restraint, but many dump their bags immediately after hyping a coin.
In our scammer sections: These accounts are labeled "pump and dump."
A newer type of scam that has grown with the memecoin community
Tools from platforms such as Photon, Axiom, and Bullx allow people to easily create multiple wallets and bundle coins. This makes it hard for the public to know that one person controls a large supply.
When a KOL becomes popular, people track their wallet and copytrade them. If the KOL buys a coin, hundreds of copytraders also buy, which pumps the price. The KOL then sells within seconds, profiting from the pump.
Many KOLs who appear to make millions are mostly just farming copytraders. Their average holding time is often less than 30 seconds.
Label: "copytrader farmers"
Twitter-based farming targeting new coin buyers
These accounts post tweets like "Omg I found something crazy" or "Why is this not tokenized yet?"
The coins they promote are usually in the new coin section. The problem is that these promoters already own a large bundled share, sometimes 30 percent or more, and they slowly sell as new buyers come in.
If the lore behind the coin is genuinely strong, it might pump, but in most cases they farm it down to zero.
Label: "tweet farmers"