Apart from being the wealthiest person on earth right now, Elon Musk has considerably influenced the crypto market. However, scammers have crypto tokens that exemplify the female version of the Tesla CEO, named ‘Elona Musk.’. As of this writing, more than 30 of such tokens are now available, with about half of them being honeypots.
The Scammers’ Token
Crypto cyber security firm, Peckshield, warned via Twitter about the continued flooding of the crypto space with the Elona Musk tokens. An unidentified Twitter user created a female profile of Elon Musk on Twitter and named the account Elon Musk. About 32 tokens related to the Elona Musk Twitter profile started appearing on various networks shortly after.
Peckshield’s Tweet Warning. Source: Twitter.
The fraudsters took advantage of the momentum to create several smart contracts with lots of loopholes. Their objective is to make loads of sales and perform a rug pull before they’re found out.
These developers can swindle users’ funds through the loopholes they’ve created or switch around the funds in any way they deem fit. Once it got wind of what’s about to happen, Peckshield quickly informed Elon Musk so that the whole episode didn’t meet him unawares.
Some of these fraudsters also named their smart contracts after other famous digital assets, coming up with names such as ElonaDOGE, ElonaSHIBA, and ElonaNFT. Trends have been used for scamming purposes several times, and this scam isn’t likely to stop anytime soon. Also, the crypto ecosystem isn’t surprised that this crypto scam is targeting Elon Musk, given his influence and outspokenness about the crypto market.
The rug pull remains one of the most popular ways many crypto developer scammers have been using it to steal investor funds. The funds are pulled from the users’ wallets into the developer’s reserve wallet before being converted to a top ten crypto (mostly BTC) and sold at any time to anybody, whether individuals or crypto exchanges.
Cryptocurrency Frauds And Trauma
While the massive volatility of the crypto market makes it highly risky for investors, the activities of crypto scammers against unsuspecting victims add to the risk. Thus, many become traumatized and depressed after losing their huge cash to such crypto scams. Despite the efforts of the financial regulators in combating crypto-related scams, there seems to be no end to their fraudulent activities.
A recent wax dynasty data revealed that crypto hackers had grown so confident that they could hack into any Defi project (regardless of such project’s security) and transfer such tokens for cash. Many potential crypto investors are afraid of scams and have cooled down their interest in the crypto space.
Crypto fraudsters aren’t limited to any specific location. Two months ago, Chinese law enforcement agents seized about $1m worth of cryptos and arrested ten persons in connection with a crypto fraud. China continues to make intense efforts to impose stricter crypto sanctions to launch its national digital currency without competition.