BONKKILLER - A Memecoin With World's Highest Market Cap Reveals as a Honeypot Scam
Summary:
A Solana-based memecoin, BONKKILLER, has alarmingly become the world's highest market cap asset at $328 trillion. However, this is a honeypot scam, where investors are lured with high returns but are unable to sell their tokens due to a "freeze authority" implemented by the creator. Even though several trading platforms have warned about this scam, buyers continue to be drawn into it. The scheme underlines the inherent risks and potential security vulnerabilities in the burgeoning memecoin market.
A Solana-based memecoin, known only to a little over a thousand holders, has reportedly climbed to become the world's highest market cap asset, boasting a staggering value of $328 trillion. The sinister fact, however, is that it is a well-laid scam, a honeypot trap, where no one is able to sell their holdings. The memecoin, BONKKILLER, was unleashed on the market on April 29, and in the past day alone, it generated about $4.6 million in trades. Birdeye, the cryptocurrency analytics tool, states that over 90% of these tokens are currently in the possession of the creator.
Regrettably, several investors have found it impossible to liquidate their memecoins due to a "freeze authority" deployed by the developer, effectively hindering any token transfers. As pointed out by SolanaFloor, a Solana-centric news portal, on April 29, "BONKKILLER, a deceptive honeypot token, eclipses $100 trillion Market Cap after the developer froze holders' accounts and thwarted token sales."
A honeypot trap is essentially a scam that promises lucrative returns to ensnare investors, but then traps them by stopping them from selling their assets.
To grasp the scale of this, consider that $328 trillion represents a figure 3.28 times larger than the world's total domestic gross product, pegged at $100 trillion, according to Worldometer.
'Bullshit metrics. If you can't sell, it's worth $0,' countered nonfungible token proponent "thirt13n", highlighting that BONKKILLER is not backed by equivalent fiat currency, rendering its market cap figure utterly meaningless to its holders.
Data from Birdeye shows that, even though several platforms are alerting investors about this scam, BONKKILLER continues to attract buyers. The creator has managed to defraud victims of approximately $1.62 million in 11 transactions, according to on-chain data.
The burgeoning rise of BONKILLER is yet another case of investors being duped by memecoin scams. A Cointelegraph Magazine investigation discovered that of the memecoins on Ethereum's layer two solution Base, one in six are scams or exhibit scam-like traits, and 91% of them have at least one security vulnerability.
These vulnerabilities may be due to creators' ignorance about safety protocols, particularly if the token was created as a prank or was released to mock the industry. Real-time smart contract and token analysis are employed by blockchain scam prevention tools to detect potential honeypot scams.
Published At
4/30/2024 8:22:10 AM
Disclaimer: Algoine does not endorse any content or product on this page. Readers should conduct their own research before taking any actions related to the asset, company, or any information in this article and assume full responsibility for their decisions. This article should not be considered as investment advice. Our news is prepared with AI support.
Do you suspect this content may be misleading, incomplete, or inappropriate in any way, requiring modification or removal?
We appreciate your report.