Over $500 Million Lost to Memecoin Scams in 2024, Reveals Merkle Science Report

Memecoin Scams Reach Alarming Levels in 2024

A report by crypto intelligence platform Merkle Science has uncovered the staggering scale of memecoin scams in 2024, with over $500 million lost to fraudulent activities. These scams often rely on social engineering, exploiting the trust and credibility of well-known figures to deceive victims.

Notable Scams Exploit Celebrity Influence

One high-profile incident involved the compromise of French footballer Kylian Mbappe's social media account. Scammers promoted a dubious memecoin, which reached a $460 million market cap before collapsing in a rug pull. Similarly, a fake WIZ token linked to music artist Wiz Khalifa, who has 35.7 million followers, amassed a $3.4 million market cap before crashing.

Scams Target Major Platforms

The report revealed that 75% of these scams originated on a single social media platform, while 19% were traced to YouTube. Additionally, 44% of social engineering attacks led to rug pulls, with phishing attacks accounting for an equal share of the total scams.

Sophistication of Scams Highlighted

Robert Whitaker, director of law enforcement affairs at Merkle Science, emphasized the sophistication and coordination behind these operations. These scams are not opportunistic but are designed to exploit trust on a large scale, leveraging the credibility of public figures to manipulate markets.

The report underscores the growing threat of memecoin scams and the importance of vigilance in the crypto space.