The scammers share a fake Shiba Inu Telegram group where they impersonate official accounts, responding to general messages. The speculative frenzy towards memecoins seems to be cooling down, which is evident in the breakdown by market capitalization on exchanges.
The developers of memecoin Shiba Inu (SHIB) recently warned about scams against investors interested in SHIB tokens. The alert came through a tweet detailing the methods used to defraud unsuspecting victims from the community.
The scammers share a fake Shiba Inu Telegram group on all social networks where they impersonate official accounts and create fake users. Those criminals respond to general messages, according to a video posted on Twitter.
As Shiba Inu attracts many investors, the scammers of that market have increased their efforts. They target innocent investors on social platforms such as Twitter and Telegram. The methods they use for contacting their potential victims are the impersonation of official accounts and cryptocurrency-related hashtags. For example, they have used #shib, #shibarmy, and #shibaswap.
The posted warning highlighted that the community does not offer any promotion, bonus, or present. The developers expect investors to avoid sharing their wallet keys and following fake accounts on social media.
The success of memecoins like SHIB and DOGE has led new tokens to start flooding the cryptocurrency market. The value of SHIB reached an all-time high of USD 0.000086 on October 28th. However, it has been struggling to maintain its price due to the current downward trend in the crypto market.
Shiba Inu Decreases Its Market capitalization, According to Coinbase
The recent speculative frenzy towards memecoins like the Shiba Inu (SHIB) token seems to be cooling down. That is evident in the breakdown by market capitalization on Coinbase.
SHIB recently accounted for 6.7% of the total market capitalization of cryptocurrencies on Coinbase, falling to third place behind Bitcoin and Ethereum. The memecoin had led the volume rankings on Coinbase for two weeks.
However, SHIB is still ahead of the most popular cryptocurrencies, among which are Solana and Polkadot.
Analysts consider the increase in SHIB a sign of the frenzy towards memecoins, which often appears at the general market peaks. A sell-off across the crypto market followed the crypto meme bullish run in early May. That caused Bitcoin to drop from USD 58,000 to USD 30,000 in less than two weeks.
The current cooling of the bullish market may redirect the attention back to Bitcoin and other major cryptocurrencies.
SHIB is currently trading at around USD 0.0000423 and has accumulated a loss of 6.6% in the last 24 hours. Its daily trading volume is above USD 1.8 billion, and its market capitalization is about USD 22.4 billion, according to CoinGecko.
The Price of SHIB Falls by 50% in 3 Weeks
Memecoin Shiba Inu (SHIB) has lost more than 50% of its market capitalization in three weeks following its all-time highs in late October.
The price of SHIB reached a low of USD 0.00004251 on November 19th after dropping by nearly 55% from its all-time high of USD 0.00008854. Its price recovered a small part of its losses that day, but that move was not decisive due to weak trading volumes.
Some analysts said a sharp pullback in the SHIB market was inevitable after its price had skyrocketed by more than 1,100% since October 1st. For example, independent market analyst John Wick called the ongoing correction of SHIB a cap signal, suggesting there would be more sell-offs.
By Alexander Salazar
