The recent video that has been trending on Twitter showing how easy it is to generate meme coins has raised concerns about the possibility of an increase in rug pulls.
The video, which has been viewed over 1.5 million times, was published by Whitelights developer studio Manifold and demonstrates how to generate Memecoin in just 27 seconds using OpenZeppelin’s Contracts Wizard. The video maker stated that the coin generated was only for the test network and for educational purposes.
memecoin deploy% speedrun 27s ⏱️ pic.twitter.com/OYaXGb5ITR
— whitelights.eth ⌖ (🦇🔊) (@iamwhitelights) May 5, 2023
However, the ease with which meme coins can be generated in such a short period raises concerns about the possibility of rug pulls. Rug pulls occur when bad actors create a large number of meme coins to steal investors’ money. The ability to mint memecoins in less than a minute provides more opportunities for adversaries to steal investors’ money.
The crypto industry has been affected by this development. CoinMarketCap has reported a surge in the mint rate of Memecoin, and there are now over 500 Memecoins with more than 1000 holders. The surge in the price of PEPE and other coins has led many to say that the Memecoin season is back and traders are expecting a sharp spike in the price of these coins.
In April, digital artist Rhet Mankind used ChatGPT to create a meme coin called TURBO, and now its market cap has crossed $100 million. However, scammers are taking advantage of the popularity of these coins to make money.
News outlet Wu Blockchain reported that scammers are creating tokens with the same names as PEPE, TURBO, and other popular coins and trading them on Arbitrum. They push these coins with the same name to the front pages of platforms such as Dex Screener and DexTools and entice users to buy the asset. They then sell the coins when the price reaches a certain level to make a profit.
The basic method is to push these Tokens with the same name to the forefront of monitoring platforms such as Dex Screener and DexTools through swiping trading volume and adding greater liquidity, attracting users to buy, and then selling a large number of reserved Tokens when the…
— Wu Blockchain (@WuBlockchain) May 6, 2023
The ease of generating meme coins in such a short period has raised concerns about the possibility of rug pulls. Investors need to be cautious and do their due diligence before investing in any meme coin to avoid falling victim to scammers. The crypto industry needs to take steps to ensure the security of investors and prevent bad actors from taking advantage of the popularity of meme coins.
Read more:
- A $263 Investment Turned Into $9 Million: Inside The Success Story Of A PEPE Meme Coin Trader
- PEPE Token Trading Volume Surpasses $2.7 Billion In 24 Hours
- Early PEPE Buyers Holding Milady NFTs Make Millions In Profits
- Pepe Meme Coin Sees Whale Investor Losses Of Over $500,000