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Dogecoin Offshoot A Honeypot Scam, According To Security Firm

One of the offshoots of the meme cryptocurrency, Dogemother, has become a scam after trapping a handful of its buyers and their funds.

The blockchain security firm, PeckShield, released recent data showing that one of the numerous offshoots of Dogecoin has been a fraud.

PeckShield has cautioned crypto investors against falling prey to the sham, arguing that the link to a regulated crypto network gave the project a semblance of legitimacy. Still, the operations have indicated that it is designed to rip off unsuspecting investors.

The ironic thing about DOGE’s offshoot is that its creators declared it as the most “caring token” that is immune to illegal activities and has a supply of 1,000,000 tokens in circulation. According to the developers, all significant decisions would be made and agreed upon by the community.

Investors were promised guaranteed and timely returns from their investments, and buyers were also considered a reward for their patronage.

Assessing the Project

Since its inception, the Dogemother project has had numerous red flags, as observed by keen experts. The first thing its website displays is a misleading statement stating that an individual would be able to buy a Lamborghini from the proceeds of the investment. This is a statement typically attributed to scammers or fraudsters.

In addition, the Telegram account associated with the token is no longer active after a reported rug pull that was swept under the carpet to dispel public criticism.

More importantly, the project developers are too quick to promise mouthwatering profits from investment. They would often avoid answering probing questions about the scheme from people interested in knowing about it.

A Rising Rate of Fraud

Scams like this are called honeypot scams because they more often persuade their users to purchase particular digital tokens with huge promises only to create a barrier that prevents them from selling their coins.

As the name suggests, it is pretty difficult for users to effect withdrawal and remain stuck on the platform because only whitelisted users are permitted to withdraw from the platform. Most such tokens are found on the BNB Chain, where people can easily create tokens due to the low fees attached.

Even though the meme token fever has worn away after some time, scammers are doing all they can to cash out from it, luring unsuspecting and inexperienced investors with questionable tokens that ultimately turn out to be frauds.

Today, U.Today reported that the crypto security company, PeckShield, had spotted a copy of the Floki Inu that appears to be a honeypot scam. PeckShield has detected many other similar crypto scams.

Like other meme coins, Shiba Inu is not left out as scammers have attempted several times to leverage its popularity by promoting fake tokens to the public, which was quickly spotted by the team at Shiba Inu and subsequently flagged down.

The battle to stop scammers is a long-drawn one, and only careful observation would be able to nip the trend in the bud.

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