LookOnChain, a cryptocurrency analytics platform, recently uncovered a scammer who created memecoins and dumped them on innocent buyers.
Using this method, the scammer earned over 160 ETH ($315,000).
According to LookOnChain, the scammer is creating new meme coins and adding liquidity to the pool, allowing people to buy them. Then, a few days later, it removes all liquidity and steals the ETH from the pool, leaving buyers with worthless tokens.
LookOnChain has detected some meme coins created by the scammer, such as TOMMY, KSI, ZUCK, BILL, WALTER2.0 and GIGA2.0. The scammer had withdrawn 1.5 ETH from KuCoin, a cryptocurrency exchange, and created TOMMY.
He then added 1 ETH liquidity to the pool and waited 18 days. He then removed the liquidity and collected 28.7 ETH in return. He repeated this process with KSI, ZUCK and BILL, obtaining a total of 140 ETH.
The scammer also created WALTER2.0 and GIGA2.0 and added 2 ETH liquidity to each pool. However, it has not yet removed liquidity, so LookOnChain warns users against these tokens.
LookOnChain advised users to be careful and check the originators' history before purchasing memecoins.
*Not investment advice.