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Crypto scams are painful for investors, and it seems they are becoming more common. Why? More people are now embracing digital assets than ever before. As a result, scammers have a sea of targets ripe for the picking. Because of this, investors must be diligent when researching new projects. Promises of big gains might be enticing, but there’s always a possibility that one gets caught holding the bag. Baby Musk Coin (BABYMUSK-USD) reminds us of this reality today, as the BABYMUSK crypto plunges nearly 100%.
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As InvestorPlace contributor Chris MacDonald wrote yesterday, Baby Musk Coin seemed like the big new meme coin to invest in. It blends right in next to tokens like Shiba Inu (SHIB-USD), Dogelon Mars (ELON-USD) and Baby Lambo Inu (BLINU-USD), taking various aspects of these tokens and adopting them for its own project. It blended in so nicely, in fact, that it posted gains of over 30% yesterday alone.
Baby Musk Coin Drops Value as Project Falls Apart
The project has seen pretty wide discussion since its launch at the end of January. Indeed, it first became noteworthy as it raised $2 million through its initial coin offering (ICO). But, there have been plenty of Baby Musk Coin skeptics, and they are looking pretty smart today.
The first warnings came just days after the ICO by Twitter user named @NOSHITCoin_io. The user noted several red flags, including the giant BABYMUSK holding by developers and the fact that users can’t sell. As such, the user labeled it a honeypot scheme. They also took CoinMarketCap to task over its listing of BABYMUSK data — something the project noted in its press release to “prove” legitimacy.
And now, the project is falling apart. The project’s developers appear to have scrubbed all signs of BABYMUSK’s existence; the project’s website and Twitter account are gone, as is the self-proclaimed “viral Baby Musk Dance video” it posted to promote the project.
Not gone, however, is CoinMarketCap’s overview page for Baby Musk Coin, which shows the near-100% plummet the token is taking. Crypto auditing firm CertiK tweeted a warning this afternoon of a rug pull scam; the team says developers are dumping the crypto into mixers to launder the funds. As a result of CoinMarketCap continuing to showcase the BABYMUSK project, the site is getting a lot of flack from users this afternoon.
On Low-Capitalization and Low-Volume Cryptocurrencies: InvestorPlace does not regularly publish commentary about cryptocurrencies that have a market capitalization less than $100 million or trade with volume less than $100,000 each day. That’s because these “penny cryptos” are frequently the playground for scam artists and market manipulators. When we do publish commentary on a low-volume crypto that may be affected by our commentary, we ask that InvestorPlace.com’s writers disclose this fact and warn readers of the risks.
Read More: How to Avoid Popular Cryptocurrency Scams
On the date of publication, Brenden Rearick did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
The post Baby Musk Coin Tanks Nearly 100% as Project Crumbles in Apparent Rug Pull Scam appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
