A crypto investor lost over $1 million in just one hour on Thursday due to a pump-and-dump scam. Misleading social media promotions deceived the investor. They invested 7,156 SOL, worth approximately $1.03 million, into a newly launched meme coin called $MBAPPE. Unfortunately, the coin’s value plummeted shortly after, causing a substantial loss.
The promotions were posted on the hacked X account of French soccer star Kylian Mbappé. Hackers accessed Mbappé’s account and used it to advertise the $MBAPPE token, which was created using Pump. Fun is a meme coin deployer based on the Solana blockchain. The platform allows anyone to create and launch meme coins quickly and with minimal effort.
The $MBAPPE token saw a rapid increase in value right after the promotional posts appeared. However, this surge was short-lived, and the token’s value dropped just as quickly. As a result, the unlucky investor was left with only $9,200 from an initial investment of 7,156 SOL. This represented a catastrophic financial loss.
One investor suffered a significant loss, while another profited from the market’s volatility. A sharp trader, identified by Lookonchain, turned $29 into $125,000 in just three minutes by trading the $MBAPPE token. This remarkable gain underscores the high-risk, high-reward nature of meme coin trading. The event showcases how quickly fortunes can change in this volatile market. Such instances illustrate the potential and peril of trading meme coins.
Crypto Scam Targets Soccer Star Mbappé
Kylian Mbappé’s identity has been misused for crypto scams multiple times. In 2019 and 2020, his image was exploited in online ads promoting fake cryptocurrencies. These ads falsely promised quick profits to lure in victims. Mbappé has previously taken legal action against such unauthorized uses of his likeness.
Crypto scams are becoming a growing concern for financial regulators around the world. 2018 France’s Financial Markets Authority reported over 1,100 similar scam complaints. Victims of these scams lost more than €55.5 million that year alone.
Recent reports from the Australian Federal Police show a significant rise in crypto-related scams. Nearly half of all investment scam losses in Australia last year were tied to cryptocurrencies. Australians lost $122 million to these scams, underscoring the need for better education and vigilance to protect investors.
Related Reading | Crypto Crash Wipes $333M, But Ethereum Shows Signs of Recovery
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