27 January 2025 , 17:07
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Scammers launched more than 6,800 fraudulent tokens to scam users amid the high-profile launch.
The official President Donald Trump memecoin called TRUMP launched on Jan. 17 and soared to a $72 billion market valuation within just two days.
Backed by the Trump family, the crypto ignited significant public interest while simultaneously becoming a lucrative target for fraudsters.
A report by Web3 security firm Blockaid highlighted the rapid escalation of scams during the launch as bad actors used the opportunity to spread chaos.
Scam tokens surge
Malicious tokens bearing the Trump name surged by 206% on launch day, with scammers creating 6,800 tokens compared to the daily average of 3,300.
Additionally, fake decentralized applications (dApps) proliferated, with 91 fraudulent dApps appearing within 24 hours—14 times the typical rate.
Fraudulent activity extended beyond the $TRUMP token itself. Scammers launched tokens tied 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 spiked by 592%, reflecting the scammers’ sophisticated strategies amid the high-profile token launches.
Risks in decentralized ecosystems
The $TRUMP token launch exposed the vulnerabilities of the decentralized crypto space, where fear of missing out (FOMO) often drives impulsive investments.
Scammers leveraged the token’s high-profile launch to trick users into connecting their wallets to malicious platforms or purchasing fraudulent tokens.
Blockaid emphasized the importance of proactive measures to safeguard users. Through real-time threat detection, the company blocked hundreds of users from interacting with scams.
The firm noted in its analysis:
“Scams may emerge as crypto grows, but robust security ensures they don’t derail progress.”
Blockaid noted in its analysis. Enhanced security tools are vital for protecting users and fostering trust as the Web3 ecosystem continues to evolve.
The $TRUMP token launch highlights the dual challenges facing digital assets: enabling innovation while addressing security risks. By prioritizing robust safeguards, the industry can ensure that growth is sustainable and safe for its users.