Fake Eric Trump Meme Coin Leads to $160 Million Rug Pull Scandal

A fraudulent meme cryptocurrency, exploiting the name of Eric Trump, the second son of former U.S. President Donald Trump, has resulted in a massive rug pull scheme. The coin's market cap nosedived from $160 million to a mere $30,000, as reported by BeInCrypto on October 16.

From the start, the token displayed several suspicious characteristics. The scammers had unsuccessfully attempted three times to launch tokens using Eric Trump’s name, finally succeeding on their fourth try and securing substantial illicit gains.

Eric Trump Coin: Exemplifying Meme Coin Fraud

Rug pull scams are increasingly common in the cryptocurrency world, with fraudulent meme coins becoming a preferred method. The Eric Trump-themed scam token stands out for its audacious and predictable approach.

In just one day, the token soared by a staggering 6,200%. On-chain analytics platform Bubblemaps quickly flagged warnings, stating, “A rug pull is imminent. ERICTRUMP is currently trending across most platforms. Do not be fooled.”

This dire prediction materialized within hours as the rug pull occurred. Bubblemaps pointed out that the token’s ownership structure was a significant red flag, as a few wallets held the majority of ERICTRUMP tokens. This centralization allowed the issuer to cash out and disappear effortlessly.

Fake Trump Meme Coins Multiply Following Genuine Popularity

The scam's roots trace back to the official meme coin "TRUMP," launched by former President Donald Trump shortly after his tenure began. Its success led to the release of another token for Melania Trump, known as MELANIA.

However, these official tokens' popularity sparked a surge of imitators misusing the Trump family name. In February 2023, a fake coin called "BARRON," named after Trump’s youngest son, was implicated in a similar scam. The tactics in the BARRON coin incident were strikingly similar to those used in the Eric Trump coin fraud.

Experts have raised alarm over the frequent occurrence of rug pull scams despite previous warnings. The ease with which scammers conduct these schemes poses a significant threat to the credibility and future of the digital asset industry. Rug pull scams, amounting to outright theft, risk eroding investor trust and damaging the cryptocurrency market's reputation.