Crypto Influencer Warns His X Followers of Dogecoin Scams: ‘Never Share Your Seed Phrase'

Crypto influencer Mishaboar, specializing in Dogecoin (DOGE), recently issued a vital warning to the members of the Dogecoin community. The warning comes at a time when meme coin-related scams are soaring. Mishaboar asked X, formerly known as Twitter, users to be extremely careful, stating that several fake airdrops are currently targeting the Dogecoin tag and other popular meme coins for that matter, per Binance.

The influencer also added that some of these scams are also being deployed using the tags of very popular AI tokens. It's understandable why they use AI Tokens or meme coins as they are the two most popular terms in the crypto world. The crypto creator asked his followers to report any account that they suspected of a scam. He also asked everyone to not be fooled by the large number of followers that some of these shady accounts boast. 

Mishaboar is known for being an influencer who always warns his followers about scams. Back when the MyDogeWallet hack happened, he had asked his followers to remember to enable two-factor authentication (2FA) on their X accounts using any authenticator application or a physical security key. 

At the beginning of 2024, the Shiba Inu scam detector platform issued a warning about scams that were targeted at obtaining people’s identities and stealing all their holdings. Cryptocurrency scams, in general, have been soaring in the United States with victims reporting losses over $2.6 billion ranging from scams like pig butchering to honeypot scams. According to The Better Business Bureau, cryptocurrency and other investment scams are the riskiest types of cons in the country right now. 

The impact of meme coins on the internet culture has been substantial and in the last few years, the coins have been tangled in an array of scams as well as shady schemes. In April 2023, a famous scam surfaced on the platform X, formerly known as Twitter. Use, ZachXBT discovered a person whose crypto wallet address- 0x739c58807B99Cb274f6FD96B10194202b8EEfB47 was linked to 114 meme coin scams, created in 1.5 months.

"Sometimes scammers get in touch with meme coin investors and trick them into revealing private seed phrases or otherwise share malicious software, usually through email as a link related to the meme token, which, when clicked on, compromises their devices," CEO Of CoinLedger David Kemmerer said, via Techopedia.

Meme coins are often used in pump-and-dump schemes. These are orchestrated by a group of investors who artificially inflate the price of a particular cryptocurrency, which generates a fake hype surrounding it, resulting in others investing in it. Once the coin reaches a peak, the investors sell their holdings, thus dumping everything. This causes the price to plunge and everyone starts to lose money at the same time. 

The chief of markets at YouHodler, Ruslan Lienkha says, "Many crypto traders simply do not have any experience in traditional financial markets in their background. So, coins with very low capitalization, lack of regulation, and easier ways to target potential investors through social media (with misleading informational campaigns, etc.) make the scheme much more efficient and easy to implement." 

The best way to stay safe is to steer clear of any aggressive promotional campaigns. It's also best to understand and gather the maximum amount of information about a certain coin or token before investing.