Coinmarket data shows millions of cryptos in existence and billions of daily trades. But that is just a start, as hundreds of new tokens get launched in the market every other day, making this count even higher. However, not every newly launched crypto survives. More importantly, not all projects are authentic and have a long life in the market. Some might be crypto scams, engulfing the users’ funds after showcasing fake tokens and profits. And that is how this one crypto trader is making $60-$65K per week scamming people with fake tokens.
Crypto Trader Earns Millions After Manipulating Meme Coins
Recently, a YouTuber, NFT Nate, interacted with Phantom, an anonymous crypto trader, to learn about his money-making skills with rugging. Rugging is a popular crypto term that means fraudulent and deceiving practices, where people take advantage of vulnerable situations to make heavy profits.
In a discussion with NFT Nate, Phantom describes the simple ways of making money with minimum capital. He called it a brain-dead-easy method and revealed how he has made $200K with this meme coins manipulation.
I interviewed a self proclaimed PumpFun rugger that’s made over $200k rugging coins. Here’s what he does. (timestamps below)
The rugger is @0x__Phantom and he uses @dogwiftools to execute these launches.
Timestamps
0:00 Intro
0:23 Phantom
1:15 Method For Rugs
4:48 Bundler He… pic.twitter.com/qr8FBl1YPJ— NFT Nate 🇦🇺 (@NFTNate_) August 19, 2024
The approach Phantom works with is called “mass sniper” where a new token is created especially to rugg people. More importantly, it only requires a few premium tools like Pump.Fun, which is a token generator, and DogWiffTools, to attract possible buyers by showing high demand for the token. This generator allows any user to create and distribute new custom tokens, especially meme coins.
The tools here are high-tech, which can present fake crypto wallets and buying records, manipulating new buyers into buying. Once a significant amount of buyers invest in these tokens, Phantom and others like him utilize the “Dump all” command or button to sell all their holdings all at once, crashing the token market. As a result, the investors will end up with worthless assets. Meanwhile, scammers will be bagging all the gains.
Pump.Fun Employee Arrested For Scamming Users
NFT Nate’s video has highlighted how crypto rug pull is happening with meme-based cryptocurrencies. Here, tools like Pump.Fun has equipped people with bag-heavy profits while scamming others of their money. However, it is not limited to this one crypto trader as many have been doing it for a long including one Pump.Fun employee.
Earlier, a former employee was arrested after stealing $1.9 million from scamming people with this platform. Interestingly, he has advised the users to stop using this platform and withdraw their funds due to the company’s ill plans. Moreover, NFT Nate has also hinted at the high presence of these scams in the market.
As per NFT Nate, more than 98.5% of tokens, especially meme-based ones, get dumped even before reaching any crypto exchanges. With this, the Youtuber has uncovered the truth behind the platform, equipping scammers with rugged schemes. However, he has not criticized these ruggers, as he believes in having only two choices in such a market, i.e., rugging someone or getting rugged by someone.
Final Thoughts
With the development of the crypto industry, new scams and fraudulent activities are also emerging in the market. One such activity is rugging, or a crypto trader has called it a sniper attack, where they create fake crypto tokens for scamming. This revelation came after NFT Nate, interacted with Phantom to learn about crypto rugging to make $60K per week.
Pooja Khardia
With years of love for reading and 5 years of content writing experience, I’m here, working on my favorite writings about cryptocurrency. I’m actively looking for trending topics and informational statistics to curate the best content pieces for crypto enthusiasts. Staying updated with trends and learning the basis and advancements of this field is the best part of the day.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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