Phantom

Cryptocurrency, while a beacon of potential wealth, also harbors a dark underside of fraud and deception. Recently, a crypto trader known as Phantom has brought to light a scamming method that nets an astonishing $200,000 by exploiting meme-based cryptocurrencies.
Phantom, whose tactics were exposed by YouTuber NFT Nate, employs a method called “rugging,” which involves creating and dumping meme coins.&nbsp;
He leverages tools like Pump.Fun, a token generator, and DogWiffTools, which fabricate demand by showing falsified buyer activity. These tools enable him to create custom tokens that appear desirable to investors, setting the stage for a scam.
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 <figure class="aligncenter"><img decoding="async" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXcEFnn5fVA1TWtRKt0BmsWft-0o-g0GjS4-4dSjPTrYjAPOFxUMfawS2Dz6VnHBivTQr559OB61yYLx886Nh7KzXw4Un4GCGWOulSdRn5yhZdAyxDiBwbP4iULu4zKIGCg3QZ38iZ-zo-2TWTC1dRWST2U?key=62vSg2tVbFnPru-PJ2E3hQ" alt="$200K Crypto Scam">
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 Source: <a href="https://x.com/NFTNate_/status/1825528307833876695" target="_blank" data-type="link" data-id="https://x.com/NFTNate_/status/1825528307833876695" rel="noopener noreferrer nofollow">Twitter</a>
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Once investors pour money into these seemingly promising tokens, Phantom uses a “Dump all” command to sell all his holdings at once. This action crashes the market for the token, rendering it worthless while he walks away with significant profits.&nbsp;
His operation highlights a critical vulnerability in the cryptocurrency market— the ease of manipulating investor trust and the minimal oversight that allows such schemes to flourish.
This scam is not isolated. A former employee of Pump.Fun was arrested for stealing $1.9 million through similar tactics, demonstrating a systemic issue within certain platforms.&nbsp;
The individual has since advised users to withdraw their funds from the platform, signaling deep-rooted problems within these trading tools.
NFT Nate’s insights reveal that approximately 98.5% of meme-based tokens are disposed of before even making it to crypto exchanges, which&nbsp; indicate a prevalent scamming culture.&nbsp;
The cryptocurrency world is in a continuous growth, and so are the tactics of its participants. Recent revelations about a trader known as Phantom, who reportedly made $200K through deceptive schemes, underscore the urgent need for tighter regulations and enhanced investor education.&nbsp;
<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow">
 Also Read: <a href="https://www.cryptotimes.io/2024/08/19/australias-asic-shuts-down-600-crypto-scams-in-12-months/" target="_blank" rel="noopener noreferrer nofollow">Australia’s ASIC Shuts Down 600+ Crypto Scams in 12 Months</a>
</blockquote>

The $200K Crypto Scam: Inside a Rug Puller’s Scheme

The Crypto Times

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