Dogecoin Knock-Off eventually becomes a scam
DogeMother Is A Honeypot Scam That Has Trapped Buyers, According To Blockchain Security Firm PeckShield
According to data from blockchain security firm PeckShield, DogeMother, one of the countless Dogecoin offshoots, is actually a scam.
The price of the BNB Chain-based cryptocurrency has plunged by 91%.
Image by @PeckShieldAlert
PeckShield has urged cryptocurrency investors not to fall prey to the sham.
Ironically, DogeMother was pitched by its developers as “the most caring” new coin that was “irresistible”. It has a total supply of 1,000,000 tokens.
The developers claimed that all decisions would be made by the community.
People were promised to receive guaranteed rewards for purchasing the token.
However, the project had many red flags. On its official website, it misleadingly claimed that someone could buy his or her mother a Lambo with a profit made from investing, a promise usually made by scammers.
The token’s Telegram channel is no longer available after an apparent pullback.
Honeypot scams typically trick users into buying a certain cryptocurrency with big promises just to prevent them from selling. As the name of the sham suggests, their withdrawals get locked into a contract as only whitelisted users can withdraw their funds. Most such tokens usually appear on BNB Chain which makes it easy for you to create new tokens due to cheap fees.
Although the memecoin frenzy has completely died down, scammers are still trying to take advantage of it by luring new investors with questionable tokens that often end up in blatant scams.
As reported by U.Today, PeckShield spotted a Floki Inu copy that was a honeypot scam.
Fraudsters have also repeatedly tried to capitalize on the popularity of the Shiba Inu token by promoting fake tokens.