The official president Donald Trump memecoin called TRUMP launched on January 17 and climbed to $72 billion stock market valuation in just two days.
Backed by the Trump family, crypto has attracted significant public interest while becoming a lucrative target for fraudsters.
A report by Web3 security company Blockaid highlighted the rapid escalation of scams during the launch, with bad actors taking advantage of the opportunity to wreak havoc.
Fraudulent tokens are increasing
Malicious tokens bearing Trump’s name surged 206% on launch day as fraudsters created 6,800 tokens, compared to a daily average of 3,300.
Additionally, fake decentralized applications (dApps) have proliferated, with 91 fraudulent dApps appearing in 24 hours, 14 times the usual rate.
The fraudulent activity extended beyond the $TRUMP token itself. Fraudsters launched tokens linked to the names of other Trump family members, such as “Melania” and “Barron,” to mislead investors into believing they were part of an interconnected ecosystem.
Metadata referencing the Trump family increased by 592%, reflecting the sophisticated strategies of fraudsters amid high-profile token launches.
Risks in decentralized ecosystems
The launch of the $TRUMP token exposed the vulnerabilities of the decentralized crypto space, where fear of missing out (FOMO) often leads to impulsive investments.
Fraudsters exploited the token high-profile launch to trick users into connecting their wallets to malicious platforms or purchasing fraudulent tokens.
Blockaid stressed the importance of proactive measures to protect users. Using real-time threat detection, the company has prevented hundreds of users from interacting with scams.
The firm noted in its analysis:
“Scams may emerge as cryptography grows, but robust security ensures they won’t derail progress.”
Blockaid noted in its analysis. Improved security tools are essential to protect users and foster trust as the Web3 ecosystem continues to evolve.
The launch of the $TRUMP token highlights the dual challenges facing digital assets: enabling innovation while combating security risks. By prioritizing robust protection measures, the industry can ensure growth is sustainable and safe for its users.