Good day everyone,
I hope you are all having a good day, welcome to CryptoGod-1's blog on all things crypto. In this post I will be looking at a recent scheme which hack the Instagram of the Dogecoin Mascot and promoted a rugpull scam.
Rugpull Scam
The scam was made up of the Instagram account associated with Kabosu, the iconic Shiba Inu behind the iconic Doge meme and Dogecoin mascot, which was hacked before being used to promote fraudulent meme coins. The owner of the famous Shiba Inu “Kabosu-chan” has made it known that the breach on her personal blog took place. She also revealed that the account, “kabosumama,” had been under attack with several unauthorized login attempts. The account contains protections such as two-factor authentication but eventually it was compromised.
Kabosu
Sato continued by warning her followers to ignore any suspicious direct message which may look like they have come from her. She also shared screenshots of the fraudulent messages in a follow-up blog post issuing a warning:
"Don’t click “Like”! Be careful of DMs! Don’t click on links! I’m really sorry for the inconvenience."
The Instagram hacker posted an image of a cat meant to be the latest member of the family, and it was dubbed "Kai." The now-deleted fraudulent post was captioned with the ticker of a meme coin launched on Pump.Fun known as $KAI. It had the description “A new family member has joined us! His name is Kai.” The fraudulent scheme followed on from the recent real-life adoption of a Shiba Inu dog by Sato, with the dog known as “Neiro.” It has so far contributed to the rise of the $850 million market cap meme coin First Neiro On Ethereum ($NEIRO).
The hackers decided to leverage the expanse platform of followers and aimed to entice victims into investing in the fraudulent scheme. They were look to create similar returns to the real life $NEIRO coin and after a sharp initial rise in price, investors were left fighting unrealized losses in a rug pull as the value of the token fell by 95%. As part of the post the hacker also made a fake charity initiative and provided a wallet address for donations, which would supposedly go to an animal shelter.
Pump.fun is a platform which makes it easier for people to launch a coin. The platform makes the process simpler and in just one minute a user can make a coin for the cost of just $2. The reduction in entry requirements has however made it easier than ever for bad actors to enter the space. The incentives for developers has basically been removed, along with reasons to advance their projects. The quality and legitimacy of the tokens being launched being launched has therefore come into question. Many feel the protocol is oversaturating the market and leading to an increase in the number of scams and rug pulls.
Pump.fun has implemented several updates aimed at safeguarding users in response to these issues. Among them was when the platform integrated the on-chain visualizer Bubblemaps to allow users to research the holders of a token’s supply back in May. Pump.fun also began to offer a 0.5 SOL reward to deployers of successful meme coins. This was done in an attempt to reduce the number of rug pulls, however it is a minimal amount compared to what can be made from a rug pull scam like the one involving the Dogecoin mascot.
Have a great day.
Peace. CryptoGod-1.
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