Dogwifhat’s X account was hacked to promote scam tokens, deceiving its followers.
The scammers inflated token prices before dumping them, causing investor losses.
The Dogwifhat team regained control, minimizing damage and restoring the account.
Crypto scammers hacked the Solana-based memecoin, Dogwifhat’s X account. On November 15, 2024, the attackers used the account to promote several newly launched meme coins, including PopWifNut (POPWNUT), Muu (MUU), and DogWifDoge (WIFD). Their goal was to manipulate these tokens’ prices by deceiving Dogwifhat’s large follower base into purchasing them.
Community Spotlights Scam
The Dogwifhat community quickly identified and exposed the scam, raising awareness among followers and preventing further exploitation of the compromised X account. Concerned users saw the posts and reported them as strange. A Web3 security firm known as Harpie verified the account compromise and posted a notice to users. The platform urged followers to avoid engaging with the posts and refrain from investing in the promoted coins.
As of press time, the price of Dogwifhat stands at $3.69, declining by 7.62% in the last 24 hours following the hack. However, over the past week, WIF has surged by 56.45%; the coin has seen a 42.34% increase in the last month.
Scammers Promote Tokens
The hackers posted the contract addresses for every token, urging their followers to act. The first token promoted, MUU, was launched less than a month before this article. Consequently, the price of MUU surged after the hack. The attackers liquidated their positions almost immediately, and the price nosedived, and many investors suffered losses. The same approach was applied to the other tokens, POPWNUT and WIFD. Both tokens experienced an initial price surge, followed by a dramatic decline.
Social Media Risks
This attack is part of a social media scam that has been on the rise to target cryptocurrency projects. Similar incidents have happened recently, including one that happened to Decentraland’s X account in September 2024. Blockchain investigator ZachXBT has highlighted that some big accounts, including Yahoo News UK and Lenovo India, have also been hacked for scams.
This incident serves as a cautionary tale in investing in cryptocurrencies. Fraudsters are leveraging social media in their antics to manipulate markets. Investors should not make decisions based on information from unverified sources and act on the posts.
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