The cryptocurrency market is plagued with a large number of hacks, frauds, Ponzi schemes, and strange transactions. The Nomad bridge was compromised just yesterday after fraudsters gained access to the network and stole money from the wallet. It has been stated that cryptocurrencies worth approximately $190.7 million were stolen, and Nomad is reportedly still investigating what took place.
In addition, an attack was launched against Solana wallets today after hackers were able to acquire access to private keys and compromise a number of wallets. It is suspected that cryptos worth more than $7 million worth were taken without permission. Now, a scam hunter by the name of “Mishaboar” discovered a potentially fraudulent Ponzi scheme operating on the Dogecoin network, which caused strange transactions to occur on the network.
The Discovery Of Potential Dogecoin Scam
Mishaboar turned to Twitter to make his assertions, in which he claimed that a small number of accounts that are run by automated bots are beginning transactions and moving cryptocurrencies to various wallets. He asserted that numerous bots execute transactions, which makes the transaction look authentic, but they are actually altering and obscuring the true nature of shifting the cryptos to other wallets. Moreover, he claimed that this occurs without human intervention. In addition, it is estimated that the bot has been responsible for initiating 40,000 small transactions each day.
According to Mishaboar, “A large number of small transactions worth 0.0207 Doge were executed on a daily basis. Supposedly to hide the true nature of the business and the movement of money. Big increase over the past days of Dogecoin transactions. Unfortunately, it seems there are some automated accounts sending out thousands of transactions per hour.”
In addition, Mishaboar compiled a list of questionable shady transactions. Even Billy Markus, one of the co-founders of Dogecoin, expressed gratitude to the user for exposing the scam today. He tweeted, “Good job, gentlemen. Sucks that the jump in transactions wasn’t organic, but alas.”
The Current Situation Of Dogecoin’s Price
Dogecoin has had a difficult time climbing higher in the indices and has largely moved in the opposite direction this year. The meme-coin is losing all of the enthusiasm that it produced the previous year, and investors who purchased it after May 2021 are now experiencing a loss in their investment. It appears there is no chance of recovery, and the goal of reaching the $1 mark is an ambitious but unlikely aspiration.
Meme-coins have been among the most severely affected by the bear market of 2022; the majority of memecoin are currently trading at prices that are 90% lower than their all-time highs. It’s possible that Tesla CEO Elon Musk’s tweets may keep the price of Dogecoin (DOGE) relatively stable for the next few months, with only minor fluctuations here and there. As a result, investors who are serious about achieving significant returns should stay away from Dogecoin for the time being. At the time of publication, Dogecoin (DOGE) was trading at $0.06788 and was up 2.24% on the day.