Last Updated on January 28, 2025 by SPN Editor
In the ever-evolving world of cryptocurrency, the launch of new tokens often brings excitement and opportunities for investors. However, it also attracts malicious actors looking to exploit the hype. The recent launch of the TRUMP meme coin is a prime example of this phenomenon. According to a report by blockchain security firm Blockaid, scammers deployed a staggering 6,800 fake tokens amid the TRUMP meme coin craze.
The TRUMP Meme Coin Frenzy
On January 17, 2025, Donald Trump introduced his official meme coin, TRUMP, marketed as a unique opportunity to express support for his ideals and beliefs. The launch generated immense interest, with the TRUMP token achieving a market cap of $72 billion within just 48 hours. This rapid surge in popularity created a perfect storm for fraudsters eager to capitalize on the frenzy.
The Rise of Fake Tokens
Blockaid’s report revealed a 206% increase in tokens using the “Trump” name on the launch day, from 3,300 to 6,800 tokens. These scammers created numerous tokens designed to mimic the TRUMP meme coin, making it difficult for investors to distinguish legitimate assets from fraudulent ones. The malicious actors used misleading branding and fake affiliations to deceive investors, leading to significant financial losses for those who fell victim to the scams.
Exploiting the Trump Brand
Scammers didn’t stop at creating fake TRUMP tokens. They also launched tokens using the names of other Trump family members, including Melania, Ivanka and Barron, resulting in a 592% increase in tokens containing metadata referencing the Trump family. One of the fake BARRON tokens even reached a market cap of $450 million before crashing, highlighting the extent of the deception.
Days after US President Donald Trump stirred controversy by launching his own memecoin, his daughter, Ivanka Trump, has warned investors about a fraudulent cryptocurrency using her name.
“It has come to my attention that a fake crypto coin called ‘Ivanka Trump’ or ‘$IVANKA’ is being promoted without my consent or approval,” the first daughter wrote in a post on X.
“To be clear: I have no involvement with this coin. This fake coin risks deceiving consumers and defrauding them of their hard-earned money,” she added.
The Proliferation of Fake dApps
In addition to fake tokens, scammers deployed several malicious decentralized applications (dApps) using the Trump brand. Within 24 hours of the TRUMP meme coin launch, 91 fake dApps appeared, representing a 14x increase. These dApps often tricked users into connecting their wallets, allowing scammers to drain funds from unsuspecting investors.
- Also Read: Five AI -Based Meme Coins to Invest in 2025
The Need for Improved Security
The surge in fake tokens and dApps underscores the urgent need for improved security measures in the cryptocurrency space. Blockaid has called on crypto developers and firms to address Web3 security issues proactively, rather than leaving it to users to navigate the risks. As the crypto market continues to grow, it is crucial for investors to stay vigilant and exercise caution when engaging with new tokens and applications.
The TRUMP meme coin craze serves as a stark reminder of the potential dangers lurking in the cryptocurrency market. While the excitement of new token launches can be enticing, it is essential for investors to conduct thorough research and remain cautious to avoid falling victim to scams. By staying informed and vigilant, investors can protect themselves from the malicious actors seeking to exploit the hype.
Stay safe and stay informed. The world of cryptocurrency offers incredible opportunities, but it also requires a keen eye and a cautious approach when investing in meme coins.