The Dogecoin community has been put on high alert by one of its esteemed leaders and contributors, known as Mishaboar. In recent developments, the developer issued a crucial warning to fellow Dogecoin enthusiasts, urging them to exercise extreme caution amid the proliferation of numerous tokens carrying the DOGE name on various chains.
These tokens, however, says Mihaboar, have no affiliation with the genuine Dogecoin and are instead creations of scamming teams. Mishaboar's alert highlights that these scammers are employing deceptive tactics, including locked liquidity, renounced contracts and supposedly "unanonymous" teams, to lure unsuspecting investors.
Be extremely careful, #Dogecoin. Many tokens carrying the "Doge" name are being launched on several (new and old) chains in these days.— Mishaboar (@mishaboar) August 2, 2023
These tokens have nothing in common with #Dogecoin and are created (sometimes with sizeable starting liquidity) by teams of scammers.
One particular concern is the use of a large decoy wallet by these scamming teams, which creates the illusion of not participating in dumping activities. In reality, they secretly sell their tokens through numerous smaller wallets that they either airdrop to themselves or acquire cheaply via whitelists before promoting the token.
Interestingly, the proliferation of DOGE imposters appears to coincide with rumors about the integration of Dogecoin into Elon Musk's X platform. The tech entrepreneur's plans to transform Twitter into a super app with functionalities akin to an investment bank have been widely discussed.
The recent acquisition of licenses for money transfers in three U.S. states has fueled speculation that X might integrate Dogecoin for payments. As usually happens in the crypto space, where there is hype and attention, there are scammers. The recent case of XRP and Ripple is a clear example of this.