Scam Alerts, Crypto Heroes and Governments Cashing Out: What’s Happening in DeFi?
As the DeFi landscape continues to evolve, the rise of meme coins and crypto scams reminds us all to stay sharp. Whether it’s celebrity endorsements or hacked accounts, the allure of quick gains can often lead to perilous pitfalls. In this edition, we dive into the latest happenings shaking up the decentralized finance landscape from celebrity-driven meme coin scams to the heroic efforts of crypto communities.
Meme Scams: Stay Safe Out There
Metallica’s iconic Twitter account got hijacked, pumping a scam Solana meme coin dubbed METAL. Fake tweets about a collab with Ticketmaster and MoonPay saw trading volumes rocket past $10 million, only for the token to nosedive later. It’s a familiar scam playbook, previously targeting 50 Cent and Hulk Hogan. Despite swift deletions and MoonPay’s warnings, METAL’s value crashed, leaving a measly $65,000 market cap. This heist underscores how celebs are prime targets for pump-and-dump schemes amid the meme coin mania.
Jason Derulo, the hitmaker, and TikTok sensation jumped on the Solana train with a meme coin named JASON. But things took a wild turn when he claimed he got scammed by promoter Sahil Arora. Twitter was ablaze as Derulo blasted Arora, but in a twist fit for a reality show, Arora spilled the beans — the whole drama was staged.
Despite the initial outcry, Derulo’s tweets sent JASON’s market cap soaring over $10 million. It’s the same old song for Arora, who’s been in hot water with Caitlyn Jenner and Iggy Azalea over similar antics. The JASON rollercoaster ride highlights the hype and hazards of celebrity-driven meme coins.
AssangeDAO: The Power of Crypto Donations
Julian Assange’s half-brother, Gabriel Shipton, gave a heartfelt nod to the crypto community, crediting them with saving Julian’s life. After Assange pleaded guilty to a single charge under the U.S. Espionage Act, AssangeDAO’s impressive $53 million in ETH for legal defense proved vital. This hefty support fueled a robust legal fight and political push, culminating in Assange’s release. Shipton underscored the symbiotic relationship between Assange and the crypto community, noting that crypto donations have been crucial since WikiLeaks turned to Bitcoin after being blacklisted by traditional payment systems.
Governments Selling Seized Crypto
Government sell-offs of seized crypto are shaking up the market. German authorities offloaded 400 BTC (worth $25 million) to Coinbase and Kraken, plus another 500 BTC ($30 million) to an unknown address, following a $170 million Bitcoin sale the previous week. These sales, from a stash of 50,000 BTC seized from the Movie2k.to site, are adding pressure to the volatile crypto market. Analysts warn that continued sales could keep Bitcoin prices on edge.
Across the pond, the U.S. government sent Bitcoin prices tumbling by moving $240 million worth of seized BTC to a Coinbase Prime address, sparking fears of an upcoming sale. The 3,940 Bitcoin were confiscated from Silk Road trafficker Banmeet Singh in January 2024
