By Nathan Ferguson
- Baby Musk Coin Loses almost 100% after developers dump the token.
- Holders could not sell the crypto.
- Scam artists persist in the crypto market, NFTs being the new target.
The meme coin Baby Musk lost about 100% of value following a rug pull. The alternative coin raised approximately $2 million in its Initial Coin Offering (ICO), reassuring to transform the meme coin marketplace.
Named after Tesla billionaire, Baby Musk Coin seems to undergo a rug pull. The narrative emerged as the meme coin lost almost 100% of its price. Reports suggested that the project’s developer dumped the asset, contributing to the colossal value plummet. Meanwhile, the token’s holder could not sell the virtual coin.
The project had raised more than $2 million in its Initial Coin Offering in early February this year. Nevertheless, the project’s developers worked on all ways to make the token appear legit, stating plans to reform the meme asset market. Baby Musk Coin’s official website, which is offline at the moment, highlighted the token’s roadmap, highlighting future goals by the developers.
The meme coin witnessed a price bump after its launch, and Grant Liu, the CEO, stated that it was in the beginning phase. Meanwhile, the project introduced features like Baby Musk Swap and index fund. Nevertheless, it turns out to be another fraud in the long fraudulent activities that plagued the crypto spectrum recently. From fake Banksy NFTs to Squid Coin, scam artists have used known approaches to attack unwary victims.
Scams Still a Threat in 2022
For now, it appears like scams will be a part of the cryptocurrency marketplace. Meanwhile, NFT scams seemed to dominate as scammers capitalized on the surged interest in this niche. Apart from fake artwork, the NFT industry faces other challenges, with fraudsters stealing Bored Ape NFTs worth $2.2 million, forcing OpenSea to freeze transactions.
Meanwhile, the most concerning this is that the UN reported that North Korea is using stolen cryptocurrencies to fund its missile program. Chainalysis stated that the country has escaped with at least $400 million from the crypto space.
Awareness and education remain the most efficient way to fight crypto scammers. With increased regulation anticipated this year, more protection policies might also help combat online scams.