Shiba Inu Namesake Token That Rallied 1821% Is a Potential $10M Scam

Aaryamann Shrivastava
Updated: Feb 28, 2022, 22:23 UTC

While the token is about two months old, it has already garnered a significant number of investors who went berserk as the coin rallied yesterday.

Shiba Inu Namesake Token That Rallied 1821% Is a Potential $10M Scam

Key Insights:

  • The token known as ShibaTron at its peak was up by 1821% and worth $0.009861
  • PeckShieldAlert discovered the “bug” that doesn’t let people sell their tokens unless whitelisted.
  • The token’s social presence also indicates this project is a possible scam.
  • In the early hours of February 27, a random token with a not so random name began rising unprecedentedly.

Named after the unexpected hit of 2021, Shiba Inu, this token has pretty much no value. Fortunately, the scam token was detected quickly before ShibaTron could defraud more people.

The ShibaTron

PeckShieldAlert tweeted about the token he attached an image of a code. Along with it, the well-known blockchain security firm mentioned that ShibaTron is a scam.

They stated that the token is running a honeypot scam that lures investors into investing in the token. Once the money has been invested, the user will receive their SHIBT tokens but will not be able to transfer their tokens or sell them.

The only ones that can sell their SHIBT are the investors who have been whitelisted.

One of the most prominent methods of alluring people into investing is offering them 6% on every transaction.

SHIBT has a supply of ten billion units. A total of four billion have been burnt, and the holders will accrue 6% on every transaction, according to the whitepaper for the cryptocurrency released in January this year.

ShibaTron whitepaper explains its tokenomics | Source: ShibaTron

Thus, people invested, and once it started rallying, more naivetes joined. The coin ended up gaining over 6000 investors.

At the time of writing, the diluted market cap of the coin, according to BscScan, is valued at $10.3 million.

Another indication of the token being a scam is the illegitimacy of its social media handle on Twitter.

The account has never posted any tweet concerning the projects or their developments. Instead, a bot replies to every comment mentioning the account goes out saying:

“We’re sorry to hear you’ve been experiencing this. Kindly send a Direct message we will ensure this is escalated. Thanks for choosing us.!!!”

The message is replied to on a mention regardless of the mention being a complaint. An example of this is:

Scams on the Rise

The existence of crypto scammers and fraudsters goes back to as early as its inception. However, such frauds and crypto attacks have become more frequent in recent years.

Recently Chainalysis revealed that North Korea’s intelligence agency is running one of the biggest cybercriminal organizations, The Lazarus Group.

In total, the country has hacked and stolen over $400 million in cryptocurrency to fund its nuclear and ballistic missile development program.

About the Author

Holding a Mass Media Degree has enabled me to better understand the nitty-gritty of being a journalist and writing about cryptocurrencies’ news and price movements, effects of market developments, and the butterfly effect of individual assets nurtured me into a better investor as well.

Did you find this article useful?