Dogecoin Advocate Warns Investors of DOGE Mimicry Scam

Popular advocate for Dogecoin (DOGE), Mishaboar, has warned lovers of the canine-themed memecoin of certain fraudulent digital assets that mimic the coin. These new tokens are leveraging Dogecoin’s brand and reputation to deceive unsuspecting investors into parting with their funds. A number use the “pump-and-dump” tactics and potential long-term devaluation strategies.

DOGE has been exhibiting some negative sentiments recently with the memecoin price currently down by 3.30% within the last 24 hours. Data from CoinMarketCap shows that the price fluctuates between $0.09 and $0.10. 

DOGE Scammers Exploit Investors’ FOMO

The phishing tokens are built in such a way that they can conveniently disguise ad DOGE. Mishaboar’s alert focused on the danger that this cloned cryptocurrency can cause as it lures investors into investing their hard earned money. One of the strategies that scammers are also likely to utilize is influencing a sudden price surge which causes investors with FOMO to buy quickly.

Once the acquisition has been made, these scammers resort to selling off their bulk holding, pushing the value of the coin to plummet. With the current volatile state of Dogecoin, it could be an option. 

Be Watchful of DOGE Scammers

Mishaboar urged investors to be vigilant to avoid falling prey to the complex scams and outright falsehoods being paraded by these bad actors who are looking to exploit the popularity of Dogecoin and its ecosystem. He also considered the possibility of the schemes involving trademark-related legal issues that could bring some harm to investors in the long run.

In all of these, investors are advised to do due diligence including conducting thorough research to gather information about any investment they decide to get involved in, even if there are claims that such investments are associated with the Dogecoin ecosystem or it looks like the DOGE that they are accustomed to. 

SEC Calls Crypto Volatile and Speculative 

It is worth noting that activities of scammers as this is what has led the United States Securities and Exchange Commission (SEC) to preach against crypto investments. The regulator still holds on to its sentiment that crypto is “volatile” and “speculative” , therefore, urging investors to limit their exposure to the asset class. 

Unfortunately, the collapse of many crypto projects including FTX underscores this sentiment. The crypto market will be required to put up more robust infrastructures to put the market in a better place and redeem its reputation.

The post Dogecoin Advocate Warns Investors of DOGE Mimicry Scam appeared first on Latest News and Insights on Blockchain, Cryptocurrency, and Investing.