Crypto Influencer Rug Pull – DannyCrypt, a popular crypto influencer pulls the rug on his followers after luring them to buy and hold a meme coin. The crypto market continues to see a number of crypto scams with more loyal followers falling victim.
In this case, @DannyCrypt is accused of receiving 2% of the token’s total market supply in payment for his marketing service. Unfortunately, the market dumped the majority of the tokens on his followers within 15 minutes who took his word for it, making a profit of 57k which convert to 31ETH.
On-chain sleuth, ZachXBT reported this on his account on May 10. According to his report, Danny promoted the token on his Telegram channel with 26 thousand subscribers while also tweeting “hodling my HODL coin.”
He told his Telegram followers that he believes the price of the token has stabilized and he was going to buy more. Unknowing to his followers, Danny had other plans as he almost immediately sold off the tokens which in turn impacted the market price negatively. See the tweet below:
Another day another influencer @DannyCrypt dumping on their followers undisclosed
He received 2% of the supply to assist with marketing but within 15 minutes of receiving the tokens market dumped the majority of them for $57k (31 ETH)
Meanwhile he tweeted “hodling my HODL coin” pic.twitter.com/XVrMh3HVDZ
— ZachXBT (@zachxbt) May 10, 2023
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ZachXBT also went on to disclose the wallet address that was used to receive the tokens and dump them. This is the wallet address connected to the transaction: 0x600ee4164bf7718998ce084d146c9c062561fc42.
Since this was uncovered, the perpetrator DannyCrypto has moved to disassociate himself from the scam. He has untagged himself from all tweets related to the token and has also moved to play the victim card in his following posts.
Crypto Scam and the crypto community
Almost every day, there is a report of successful crypto scams that leaves investors losing a lot, if not all their money. This is a subtle reminder that investing in cryptocurrencies needs proper research.
Often times influencers promote a particular project not because they believe in the future of it, but because of their own gains. It is always important to do due diligence or consult investment experts before involving yourself. Finally, only invest a portion of the funds you are willing to lose and avoid extremely volatile assets like meme coins.