The crypto ecosystem is abuzz as a new coin, CATDOG, attracts attention. It is not only its original name that attracts attention, but also the controversy surrounding it.
While many famous influencers promote it, others warn that it is a scam.
Bubblemaps Reveals CATDOG Supply Concentration
Recently, pseudonymous crypto influencers like Cyclop, Klarck, Rekt Fencer, Ardizor, and Symbiote have taken to Twitter, subtly promoting CATDOG. They hinted at potential market capitalization blast from its current $69 million to billions. However, a closer look suggests a more disturbing tale.
Blockchain analytics firm Bubblemaps has issued warnings regarding CATDOG’s market movements. Their research reveals that 140 connected wallets hold 40% of the coin supply, a classic red flag in the crypto industry. For example, a walletg3ZJo5, initially de-supplied CATDOG, quickly distributing coins to 60 other wallets while retaining 17.7%.
“Influencers are going wild on CATDOG, but be careful,” Bubblemaps warned.
Learn more: Crypto Scam Projects: How to Spot Fake Tokens
Further analysis shows that another wallet, 4rFHx1, made a large purchase that caused the price of CATDOG to surge. This portfolio then sold 25% of its holdings after recouping its initial outlay, but it still controls 18.7% of the total supply.
Additionally, the person behind the A6SdeT wallet sold a fraction before a price spike, thus ceasing further sales to retain 2.4% of the total supply. All these portfolios were notably financed by the OKX crypto exchange just before their CATDOG trades, primarily focusing on sniping and selling, indicating potential manipulation.
Critics within the crypto community object to influencers endorsing CATDOG. Crypto Rug Muncher, known for exposing scams, highlighted that these influencers had previously promoted other doomed coins like ANALOS, BALLZ, and HULVIN, leading to significant losses for investors.
Dethective, another X (Twitter) user, explained how a network of influencers tweeted about CATDOG to over 2.6 million followers.
“A meticulously managed influencer network, with a combined audience of 2.6 million followers, tweeted 103 times about this fraudulent token, creating an echo chamber,” Dethective said.
Learn more: 7 Hot Meme Coins and Altcoins Trending in 2024
Famous chain sleuth ZachXBT also exposed CATDOG as a scam.
“You don’t need me to post to understand that something called CATDOG promoted by bot accounts is a scam,” ZachXBT said.
The rise in meme coins is not limited to crypto influencers; Mainstream celebrities have also endorsed various tokens. More than 30 celebrities, including Andrew Tate And Iggy Azalealaunched their tokens on the Solana blockchain. Despite their great notoriety, these meme coins suffered an average decline of 94% in value, demonstrating the risky nature of such investments.
Andrew Tate’s token, DADDY, although the best performer, still fell by more than 73%. The decline is symptomatic of the broader market slowdown affecting 30 celebrity-endorsed pieces.
“The numbers don’t look good, but to be honest this is true for all tokens. Web3 is a fickle beast, and even serious attempts aren’t always successful, but that doesn’t excuse blatant pumps and dumps,” said crypto analyst Slorg, offering a grim outlook.
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