"Trump-Themed MemeCoin $BARRON Scams Investors in Massive Rug Pull"

The X account of Zach Witkoff, co-founder of World Liberty Financial, was recently hacked and used to promote a fake Barron Trump-themed memecoin, $BARRON. The fraudulent project quickly surged in market value before crashing within seconds, indicating a rug pull scam. World Liberty Financial has confirmed that it has no ties to the $BARRON project and urged users to ignore the fraudulent posts.

The hacker took control of Witkoff's X account and used it to promote $BARRON, a Solana-based memecoin falsely linked to President Donald Trump's youngest son, Barron Trump. The hacker claimed that Trump would soon confirm the token's legitimacy. However, World Liberty Financial confirmed that Witkoff's account was compromised and advised users not to engage with any posts promoting the project.

The coin briefly reached a market capitalization of $73 million in under ten minutes before suddenly plummeting by 99%. This rapid rise and collapse indicated a rug pull, a scam where creators artificially inflate a token's value before dumping it for profit.

The $BARRON incident follows a similar scam in January involving a memecoin named after Ivanka Trump. The former president's daughter publicly distanced herself from the project and warned investors against fraudulent schemes using her likeness. Memecoins featuring the Trump family have gained traction since Donald Trump announced his own cryptocurrency, Official Trump, on Solana in January. Days later, Melania Trump launched Melania Meme, also on the Solana blockchain.

The rise of celebrity-themed memecoins has raised concerns about misleading promotions and scams in the cryptocurrency market. Experts warn that many projects lack transparency, and sudden sell-offs, commonly known as "rug pulls," can lead to significant financial losses. Despite these concerns, US SEC Commissioner Hester Peirce stated in a February 11 interview that most current regulatory frameworks do not cover memecoins.