Dogwifhat (WIF), the popular meme coin, narrowly avoided a pump-and-dump scheme after its X account was hacked on November 14th. Scammers used the compromised account to promote newly launched tokens on Solana, aiming to manipulate their prices.
A Coordinated Attack
The attackers targeted Dogwifhat’s X account, altering the bio and posting messages encouraging followers to invest in newly created tokens: popwifnut (POPWNUT), muu (MUU), and DogWifDoge (WIFD). They provided contract addresses to facilitate purchases, attempting to lure unsuspecting investors into the fraudulent scheme.
Read moreDogwifhat’s Coinbase Debut: A Shiba Inu-Like Rally on the Horizon?
Pump and Dump in Action
Community members quickly identified the suspicious activity. Fortunately, web3 security firm Harpie quickly confirmed the breach, urging users to ignore the fraudulent posts. However, the attackers managed to create some initial chaos:
- MUU: A newly launched meme coin experienced a sudden, manipulated price surge following the promotion. After a period of low activity, it reached an all-time high. However, the attackers quickly liquidated their holdings, causing the price to plummet.
- WIFD and POPWNUT: These tokens followed a similar pattern, experiencing a rapid rise in value followed by a swift decline. Within six hours, both tokens lost over 83% of their value, with their market caps plummeting to under $50,000 combined.
Read more:Dogwifhat Soars 42% on Coinbase Listing!
Swift Response and Restoration
Fortunately, Dogwifhat developers quickly regained control of the compromised X account. They restored the original profile picture and bio, erasing any traces of the fraudulent activity.
Deja Vu? Rapper Wiz Khalifa’s X Account Hacked
This attack comes just days after a similar incident involving rapper Wiz Khalifa. On November 3rd, his X account was breached, and hackers promoted a fake cryptocurrency called “WIZ” claiming to be endorsed by the rapper. The scheme briefly gained traction, reaching a market cap of $3.4 million on the Solana-based Pump.fun platform. However, like Dogwifhat’s experience, WIZ’s value quickly collapsed as early investors sold their holdings, driving the market cap to under $28,000.
Read more:Dogwifhat Soars 37% on Coinbase Listing Rumors!
Lessons Learned
These incidents highlight the increasing sophistication of crypto scams and the vulnerability of social media accounts. It’s crucial for users to remain vigilant and exercise caution when encountering online investment opportunities:
- Verify Information: Always verify information before making any investment decisions. Don’t trust posts on compromised accounts, even if they seem to originate from a trusted source.
- Research Thoroughly: Before investing in any cryptocurrency, conduct thorough research on the project, its team, and its tokenomics. Be wary of newly launched tokens with vague purposes.
- Beware of Hype: Avoid getting caught up in hype or FOMO (fear of missing out). Pump-and-dump schemes often rely on creating a sense of urgency to trap investors.
By remaining cautious and conducting due diligence, investors can protect themselves from these types of scams and make informed decisions in the cryptocurrency market.
