Shiba Inu namesake token that rallied 1821% is a potential $10 million scam

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Key ideas:

  • The token known as ShibaTron at its peak was up 1821% and worth $0.009861
  • PeckShieldAlert discovered the “bug” that prevents people from selling their tokens unless they are whitelisted.
  • The social presence of the token also indicates that this project is a possible scam.
  • In the early hours of February 27, a random token with a not-so-random name began to surge unprecedentedly.

Named after the unexpected hit of 2021, Shiba Inu, this token has next to no value. Fortunately, the fraudulent token was caught quickly before ShibaTron could defraud more people.

The ShibaTron

PeckShieldAlert tweeted about the token to which he attached an image of a code. Meanwhile, the well-known blockchain security company mentioned that ShibaTron is a scam.

They stated that the token runs a honeypot scam that entices investors to invest in the token. Once the money is invested, the user will receive their SHIBT tokens but will not be able to transfer their tokens or sell them.

The only ones who can sell their SHIBT are investors who have been whitelisted.

One of the most common ways to get people to invest is to offer them 6% on every trade.

SHIBT has a supply of ten billion units, of which a total of four billion have been burned, and holders will earn 6% on each transaction according to the cryptocurrency white paper released in January this year.

ShibaTron white paper explains its tokenomics | Source: ShibaTron

So people invested, and once that started to rally, more naiveties joined. The coin ended up gaining over 6000 investors.

At the time of writing, the diluted market capitalization of the coin, according to BscScan, is valued at $10.3 million.

Another indication that the token is a scam is the illegitimacy of its social media handle on Twitter.

The account has never posted a tweet regarding the projects or their developments. Instead, a bot responds to every comment mentioning the account by saying:

“We’re sorry to hear you experienced this. Please send a direct message, we’ll make sure this is escalated. Thank you for choosing us!!!”

The message is answered on a mention regardless of the mention being a complaint. Here is an example,

Scams on the rise

The existence of crypto scammers and fraudsters dates back to its inception. However, in recent years, these crypto frauds and attacks have become more common.

Chainalysis recently revealed that the North Korean intelligence agency runs one of the largest cybercriminal organizations, The Lazarus Group.

In total, the country has hacked and stolen over $400 million in cryptocurrency to fund its nuclear and ballistic missile development program.

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