The hype of meme-themed cryptocurrencies has grown significantly in the last few years, and so does the meme coin scams. 2024 witnessed a change in investors’ mindset around these low-cap meme-themed cryptos due to their high profitability. However, this simplicity and demand created the opportunity for scams, especially the pump-and-dump ones, where creators lure investors in before crashing the token. The most recent case is of this Indian meme coin creator scam, where the crypto investor with the pseudonym MrPunkDotEth allegedly scammed $10M in GANG token in just 8 minutes. Let’s discuss.
How This $10M Indian Meme Coin Scam Took Place
Fawi, a fellow crypto user, analyzed the alleged Indian meme coin scam and shared the findings on X. Fawi claimed that an Indian-origin investor, who goes by the pseudonym, MrPunkDotEth, is behind this trending meme coin crash.
According to multiple experts’ claims, MrPunkDotEth launched the GANG token and claimed that this is ‘for the culture.’ The crypto community’s concern began when the creator revealed his plans to own 90% of the token supply to control the token and sell only 5%. More importantly, later findings reported that the person had almost 95% of the supply, which he extracted and dumped, crashing this token.
Just moments after the launch news, the creator allegedly began dumping his GANG crypto holding, extracting $1.3M within two minutes. However, things were just the beginning, as the creator has multiple side wallets, collectively extracting $10M and immediately off-ramping these via Binance.
Notably, the $10M extraction is just speculation now, but most experts claim the creator benefitted more than $4M from this scam. More importantly, this resulted in the Thug life price crash, leaving 99% of the holders in losses while the insiders made profits.
GANG Token Crashed 99.5%, Getting Community Backlash
MrPunkDotEth’s tweet about the GANG token launch went viral, giving the token an initial boost, mainly because the creator showed a fun side of it. He claims the token is for community and culture, which got attention.
However, as the Indian meme coin scam unraveled, the GANG token price crashed by 99.5%. It is currently trading at $0.00002101, with a market cap of $112.51K and a trading volume of $257.43K per Geckoterminal.
This has left the crypto community outraged, as the alleged creator blatantly runs a rug-pull scam. Investors have called for legal action against the creator and urged the crypto exchanges and platforms to freeze the funds.
In a similar yet different scenario, CHARLES token crashed, as the Cardano founder, Charles Hoskinson burned $100M worth of ADA meme coin. The CHARLES meme coin creator sent these tokens to him, who wished to benefit from associating the crypto with Hoskinson.
What’s The Lesson Here?
The increasing number of rug pull scams has affected thousands of investors. Such incidents brought attention to the strictness of DYOR and ignoring the FOMO. In the Thug Life token’s case, the creator builds a FOMO around the token, resulting in massive losses for 99% of the investors. The MrPunkDotEth has been alleged in the Indian meme coin scam, where experts believe that the investor and the creator must have benefitted around $10M. Investors are advised to avoid single entity-owning projects, check wallet activities, and implement proper risk management.
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