Over $500 Million Lost to Memecoin Scams in 2024
In 2024, more than $500 million was lost due to memecoin rug pulls and scams, according to an insightful report by the crypto intelligence platform Merkle Science. This alarming figure highlights the growing prevalence of deceptive practices within the cryptocurrency space, particularly those targeting unsuspecting investors.
The most prevalent scams have been attributed to social engineering techniques, which involve impersonation and manipulation to access individuals’ personal data. Often, these scams focus on high-profile figures, including celebrities and notable tech personalities. One striking example involved French football star Kylian Mbappe, whose X account was compromised by scammers. Once they gained control, a link to a dubious memecoin was shared, leading to a staggering $460 million market cap before the project was abruptly rug pulled.
Another notorious incident involved renowned music artist Wiz Khalifa, who has a massive following of 35.7 million on X. Scammers promoted a fake WIZ token, which initially surged to a market cap of $3.4 million before crashing to zero. These cases underscore the calculated nature of these scams, which are not merely opportunistic but rather highly organized operations aimed at exploiting trust on a large scale.
Robert Whitaker, the director of law enforcement affairs at Merkle Science, noted, “These scams aren’t just opportunistic—they’re highly coordinated operations that exploit trust at scale.” He further emphasized that hackers have evolved beyond simply breaching wallets or exchanges; they are now hijacking the credibility of celebrities and industry leaders to manipulate markets in real-time.
The report from Merkle Science reveals that a staggering 75% of all attacks occurred on X, while 19% took place on YouTube. The findings also indicate that 44% of the reported social engineering scams resulted in rug pulls, with phishing attacks accounting for another 44% of all scams. This data paints a concerning picture of the current state of the cryptocurrency landscape, highlighting the urgent need for increased awareness and protection measures against such deceptive tactics.
