As a seasoned crypto investor with more than a decade of experience in this volatile market, I can’t help but feel disheartened by the latest revelations about scammers like Phantom who make millions by manipulating meme coins and rugging unsuspecting investors. It seems that the wild west days of crypto are far from over, with new scams emerging at every turn.
According to Coinmarket data, there are numerous cryptocurrencies in existence and billions of daily trades occurring. However, the number keeps growing as new tokens enter the market regularly. Unfortunately, not every new crypto is legitimate or sustainable. Some may be outright scams, offering false tokens and promising unrealistic profits to lure unsuspecting users, ultimately draining their funds. This is a concerning issue, as one crypto trader is reportedly earning $60-$65K per week by deceiving people in this manner with fake tokens.
Crypto Trader Earns Millions After Manipulating Meme Coins
Lately, YouTuber NFT Nate engaged in conversation with Phantom, an unidentified cryptocurrency trader, to gain insights into his methods for making money using rugging. Rugging is a common crypto slang referring to dishonest and misleading behaviors, where individuals exploit weak positions to amass substantial profits by taking advantage of unsuspecting situations.
During a conversation with NFT Nate, Phantom outlined effortless strategies for earning income with limited starting funds, which he termed as an ‘extremely straightforward’ approach. He shared his experience of amassing approximately $200,000 through the manipulation of meme coins.
I spoke with an individual who refers to himself as a skilled RugFun player, having earned more than $200,000 in Rugging Coins. This is his approach:
The rugger is @0x__Phantom and he uses @dogwiftools to execute these launches.
Timestamps
0:00 Intro
0:23 Phantom
1:15 Method For Rugs
4:48 Bundler He…— NFT Nate (@NFTNate_) August 19, 2024
Phantom’s method of operation is known as “mass sniping,” where unique tokens are specifically manufactured to manipulate people. Notably, this process primarily relies on a limited set of high-end tools such as Pump.Fun, which is a token generation tool, and DogWiffTools, to lure potential buyers by simulating high demand for the token. These tools enable any user to produce and disseminate new, custom tokens, particularly meme coins.
In my analysis, these advanced tools can create deceptive crypto wallets and purchase histories, luring unsuspecting newcomers into investing in tokens. Once a substantial number of investors pour their resources into these tokens, Phantom, along with others, capitalizes by executing the “Sell all” command or button, offloading all their holdings at once. This sudden sell-off causes the token market to plummet, leaving investors holding virtually worthless assets. Simultaneously, scammers are reaping the profits.
Pump.Fun Employee Arrested For Scamming Users
The video by NFT Nate demonstrates instances where cryptocurrency rug pulls occur, particularly in meme-based digital currencies. Platforms such as Pump.Fun have allowed some individuals to amass substantial profits at the expense of others, through questionable trading practices. However, this is not an isolated case within the crypto market, with many traders engaging in similar activities over a prolonged period. This includes employees from Pump.Fun.
Previously, a disgraced ex-employee was apprehended for embezzling $1.9 million by deceiving users through this platform. Surprisingly, he cautioned the users to cease using this platform and withdraw their funds due to the company’s underhanded intentions. Furthermore, NFT Nate has warned of a large number of such scams prevalent in the market.
According to NFT Nate’s findings, over 98.5% of tokens, particularly those based on memes, are quickly sold off before they even reach cryptocurrency exchanges. This revelation sheds light on the true nature of the platform, making it a tool for scammers to employ deceitful strategies known as “rug pulls.” However, Nate himself does not condemn these scammers, as he sees only two options in this market: either you get rugged by someone or you rug someone else.
Final Thoughts
As the crypto market expands, so too does the appearance of deceptive practices and fraudulent activities. One such scheme is known as “rug pulling” or “sniper attacks,” where individuals manufacture counterfeit cryptocurrency tokens for the purpose of defrauding unsuspecting investors. This was highlighted when NFT Nate collaborated with Phantom to gain insights on crypto rugging, aiming to make approximately $60K per week.
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2024-08-20 15:54