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Cryptocurrency Traders Lose $1.7 Billion to Meme Coin Scams in Q1 2025

Coin WorldFriday, May 2, 2025 9:29 am ET

1min read

Cryptocurrency traders have been targeted by a wave of scams involving fake meme coins, with fraudsters falsely linking these coins to prominent figures such as Elon Musk. During the first quarter of 2025, traders lost over $1.7 billion in various digital asset hacks and attacks, with an additional untold amount stolen through fraud and scams. One of the most prevalent scams involves meme coins inspired by xAI’s Grok artificial intelligence model, which has been falsely associated with Elon Musk.

Scammers have been flooding social media platforms, including X, with claims that Elon Musk is behind these Grok meme coins. These promotions often include dubious links and misleading comments, such as ‘$GROK ALWAYS WITH ELON. DONT MISS IT,’ which appear on digital asset quote and social networks like CoinMarketCap. However, it is unclear whether these comments are left by scammers or by individuals hoping to pump the value of the meme coins they own.

The sheer number of ‘shitcoins’ bearing the name Grok indicates that the teams or individuals behind them are attempting to mislead traders for financial gain. This scam is not isolated to Elon Musk; at the start of May, a page pretending to be the Tate brothers organizing a dinner event for top holders of the Daddy Tate (DADDY) meme coin also emerged. This scam was inspired by President Donald Trump’s decision to invite top holders of the Official Trump (TRUMP) cryptocurrency to dinner with him.

Interestingly, the recent surge in accounts pretending to offer exclusive cryptocurrency advice or airdrops from celebrities like Elon Musk suggests a drop in sophistication among scammers. Despite advancements in AI video generation, fraudsters have abandoned attempts to create full-blown fake videos featuring digitally-generated celebrities. This shift indicates that scammers may be relying more on simple deception tactics rather than advanced technology.

Despite the risks, some traders have managed to profit from the volatile surges in meme coin values. For example, one digital assets investor turned $1,500 into nearly $300,000 within just five hours using an amorally-named New XAI gork (GORK). This highlights the potential for significant gains, albeit with high risk, in the meme coin market.

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