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Scam Alert: Popular Crypto Influencer Rugs This Token, Selling 2% of Supply on His Followers

Thu, 05/11/2023 - 08:35
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Arman Shirinyan
Meme coin madness on market continues, which is why various influencers are trying to make as much as they can while it lasts
Scam Alert: Popular Crypto Influencer Rugs This Token, Selling 2% of Supply on His Followers
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Unfortunately, the cryptocurrency market is slowly getting used to repeated scams. The most recent incident involves a well-known crypto influencer, who goes by the name DannyCrypt, allegedly pulling the rug on his followers. 

The influencer is accused of receiving 2% of a token's supply for marketing purposes and then dumping the majority of these tokens on his unsuspecting followers for a profit of $57K (31 ETH).

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According to ZachXBT's report, @DannyCrypt was actively promoting the HODL coin on social media, tweeting about "hodling" his tokens. Simultaneously, he was telling his 26K-strong Telegram channel that he believed the price of the HODL coin had stabilized and that he was buying more. However, within 15 minutes of receiving the tokens, he allegedly sold them, negatively impacting the market price.

The wallet address associated with the transactions is 0x600ee4164bf7718998ce084d146c9c062561fc42. Since the incident, DannyCrypt has reportedly tried to distance himself from the scam, untagging himself from related tweets and playing the victim in subsequent posts.

This event serves as a stark reminder of the need for caution when investing in cryptocurrency projects, particularly those endorsed by influencers. To avoid falling victim to such scams, consider the following recommendations.

Users should do their own research, not blindly follow the advice of influencers, and remain skeptical of unreleasitic promises. Additionally, avoid investing all of your funds into meme coins and volatile digital assets.

It is essential to remember that the meme coin space is rapidly growing and remains full of uncertainty. Scams like the one involving @DannyCrypt are unfortunate but not uncommon. Stay cautious, do your research and invest wisely to minimize your risks.

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About the author

Arman Shirinyan is a trader, crypto enthusiast and SMM expert with more than four years of experience.

Arman strongly believes that cryptocurrencies and the blockchain will be of constant use in the future. Currently, he focuses on news, articles with deep analysis of crypto projects and technical analysis of cryptocurrency trading pairs.