Malicious Tokens, Trump-branded dApps Surge After President's Official Memecoin Launch: Blockaid

The launch of U.S. President Donald Trump's Official Trump (TRUMP) memecoin ahead of Monday's inauguration was a big win for early bird cryptocurrency holders who got wind of the launch as soon as the announcement was made, but it was a double-edged sword.

Leading Web3 security tool provider Blockaid revealed in a Tuesday report that the TRUMP token's launch paved the way for threat actors to exploit the frenzy as nearly 7,000 new tokens with the "Trump" name popped up in the crypto space.

Market Gets Flooded with Fake $TRUMP Tokens

Soon after the official Trump token hit the market, scammers immediately moved to capitalize on the buzz, Blockaid data showed.

A total of 6,800 tokens with the "Trump" branding were launched, marking a staggering 206% spike in Trump memecoin launches. "Many of these tokens used misleading branding to lure investors," the report said.

Dragging Other Trump Family Members in the Game

Scammers and malicious actors didn't stop with launching fake Trump tokens. They also capitalized on the popularity of other members of the Trump family.

Memecoins named after First Lady Melania Trump and presidential son Barron Trump surged by a whopping 592% after the TRUMP token's launch, "creating the illusion of an interconnected ecosystem."

Fake dApps Deployed

Aside from a spike in malicious Trump-branded memecoins, other threat actors also deployed fake decentralized apps (dApps) that also used the president's name.

A day after the TRUMP token's launch, there were 91 fake dApps deployed, marking a 14x increase in dApps with Trump-related themes. "These dApps often trick users into connecting their wallets, allowing scammers to drain funds," Blockaid said.

The Irony of $TRUMP Memecoin's Popularity

"The $TRUMP token launch wasn't just a magnet for investors—it was a beacon for scammers," Blockaid pointed out.

As crypto holders cashed in on the new memecoin launched by none other than the U.S. president, scammers knew many in the space were vulnerable enough to easily believe crypto products with the Trump branding.

As it turns out, many of the so-called Trump-related tokens and dApps aren't really connected in any way to the U.S. leader and were just used by scammers to exploit the FOMO (fear of missing out).

"The $TRUMP token launch serves as a stark reminder of the adversarial nature of the onchain space and the critical importance of proactive security," meaning investors should be vigilant enough to do their own research about new tokens or crypto projects that use an influential person's name.

Meanwhile, the TRUMP memecoin has since plunged to around $42 from an all-time high of $73 hours after it launched.

Originally published on IBTimes