New Memecoin 'SCAM' Jumps 5% Despite Elon Musk's Fraud Warning

▲ Elon Musk, memecoin, cryptocurrency fraud/AI generated image

A brief comment from Tesla CEO Elon Musk triggered a surge in a memecoin whose name literally means fraud, revealing extreme speculative sentiment in the virtual asset market.

According to U.Today, a virtual asset media outlet, on April 28 (local time), a memecoin named ‘SCAM’ was issued immediately after Musk's reply on X (formerly Twitter), recording a surge of 54,661%. The token was created by anonymous developers immediately after Musk's statement, and speculative funds concentrated upon its release, causing a rapid price increase in a short period. Despite the name itself implying risk, a large number of investors seeking short-term profits poured in.

This case demonstrates that Musk's influence on the market remains absolute. He has previously affected the price movements of various memecoins, including Dogecoin (DOGE), and this time, even a word with a negative connotation has been transformed into a speculative tool. The market is increasingly criticized for strengthening an abnormal structure where funds are concentrated on personality-driven narratives rather than technical value or utility.

On decentralized exchanges, the token's liquidity rapidly expanded, leading to millions of dollars in transactions. However, experts warned that such assets are highly likely to have typical high-risk structures involving price manipulation or liquidity rug pulls. Indeed, similar memecoins have repeatedly surged and then plummeted, effectively losing their value.

The virtual asset market continues to see new forms of speculative assets emerge even amid strengthening regulations. In an environment with limited safeguards, investment decisions are entirely left to individuals, but the expectation of short-term profits outweighs these risks. Concerns are being raised in the industry that personality-driven speculative trends could undermine overall market trust.

The Musk-related memecoin craze has been repeated in the past, but the phenomenon of funds concentrating even on assets that carry clear warning signs indicates that the market's speculative tendencies are reaching an extreme. Investment methods based on mere hype can lead to massive losses, so a cautious approach is required.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*