According to data provided by blockchain security firm PeckShield, DogeMother, one of the countless Dogecoin offshoots, is actually a scam. The price of the BNB Chain-based cryptocurrency has collapsed by 91%.
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 “unruggable.” 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. The project, however, had many red flags. On its official website, it misleadingly claimed that one would be able to buy his or her mom a Lambo with profits made from investing, a promise that is typically made by scammers. The Telegram channel of the token is no longer available after an apparent rug pull.
Honeypot scams typically cajole users into buying a certain cryptocurrency with big promises only to prevent them from selling. As the name of the sham suggests, their withdrawals get stuck in a contract since only whitelisted users are allowed to withdraw their funds. Most of such tokens typically appear on BNB Chain, which allows easily creating new tokens because of cheap fees. Even though the memecoin frenzy has completely died down, scammers are still attempting to capitalize on it by luring new investors with dubious tokens that often end up being blatant scams. As reported by U.Today, PeckShield spotted a Floki Inu copy that was a honeypot scam. Fraudsters have also repeatedly tried to take advantage of the popularity of the Shiba Inu token by promoting fake tokens.