How to Recognize and Avoid Them

Many traders or even HODLers (long-term holders of cryptocurrencies who do not sell their assets despite market fluctuations) have made millions on memecoins. That said, the niche appeal and potential for manipulation make this asset class an obvious target for scammers.

In this guide, we’ll cover how to recognize memecoin scams, how to stay safe when trading these coins, and what to do if you fall victim to a scam.

What are memecoins

A meme is an image, video, or text, usually of a humorous nature, that is shared by internet users. Memecoins are cryptocurrencies or tokens built around memes. In most cases, the value of such coins is determined solely by the hype around them. No practical usefulness of such projects do not carry.

The value of memecoin is determined by market demand and speculation. Such coins are usually bought for entertainment and earning money.

Memecoin Scams

Memecoin fraud is any dishonest scheme or scam involving this type of coin. The love of fraudsters for this asset class has left a negative mark on it. Therefore, many investors are afraid to work with meme coins.

Because of their unique nature, memecoins are an attractive target for scammers. People trade them despite the risks, for fear of missing the opportunity (FOMO) to turn a small investment into a large profit. The low cost of entry and the influence of social media further add to their appeal.

How to recognize memecoin scams

It is important to learn how to recognize different types of memecoin scams. Here is a list of different signs that will help point out the risks.

1. Anonymous creators

One of the most obvious ways to determine if a crypto project is associated with scammers is the anonimity of the team. When there is no transparent information about the project developers or their qualifications, it becomes difficult to hold them accountable.

2. Unrealistic promises

Memecoin scams often involve inflated promises of astronomical profits with no explanation of how the goal will be achieved. The scheme may be built around unrealistic tokenomics, which includes overly large token offerings or disproportionate asset allocation among the team.

In the former case, the number of tokens can be in the trillions or quadrillions; in the latter, the team usually owns more than 50% of the total.

3. Lack of clear purpose

Another worrying sign is the lack of detailed plans for project development, technology and long-term strategy. Although memecoins do not usually seek to carry a benefit, developers should have goals.

If a project relies solely on marketing and promises without a functional prototype or minimum viable product (MVP), or provides inconsistent or unclear information, it is not worth investing in.

4. Aggressive advertising and pressure

Scammers often create a sense of urgency by encouraging quick investment and limiting time for due diligence. The method may be built around paid advertising, aggressive marketing through influencers or celebrities, social media hype. There may also be unsubstantiated claims of cooperation with famous companies or personalities.

5. Suspicious website or platform

Poorly designed websites, typos, or URLs that strongly resemble legitimate projects are clear signs that memecoin may be a scam. Bad websites are a sign of a hastily launched project. In contrast, legitimate projects usually take the time to build a complete platform that is attractive to users.

6. Lack of engagement

Lack of discussions or interactions in official channels is common for new and unknown projects. Such signs are also characteristic of fraudulent memecoins.

This is especially true for platforms like X (formerly Twitter), Discord, and Reddit. Fraudulent project teams often launch bots to comment on their posts to create a false sense of engagement.

7. Lack of audits

In 2025, launching tokens has become incredibly easy thanks to platforms like Pump.fun. Scammers can launch low-quality smart contracts on such platforms, in which it’s hard to recognize a scam at a glance. Technical problems are hard to detect if you are not a developer. Therefore, many legitimate projects audit their tokens as a sign of integrity.

If a project has not passed a code audit, this could be a sign of fraud. However, it is important to remember that even secure smart contracts do not guarantee protection against memecoin fraud in secondary markets.

8. Lack of liquidity

Low liquidity of memecoin can be a sign of an impending rug pull (withdrawal scam). In this case, the creator launches a liquid pool with memecoin and a more stable coin (e.g. ETH, SOL and so on). It puts only a limited amount of the underlying token in the pool and a large number of memecoins.

When investors start investing in the pool, the price of the memecoin goes up. The creators then remove the underlying token, rendering the remaining memecoins worthless.

Types of memecoin scams

Not all memecoin scams are the same. Scammers will do everything they can to steal your money. Here are some of the types of threats.

Rug pulls. Rug pull is a type of cryptocurrency fraud where the developers of a project suddenly abandon it and disappear with investors’ money, leaving them with worthless tokens.

Fake Presales. Scammers create hype around a new token, raise funds for early purchases and then disappear without delivering the promised tokens or abandoning the project entirely.

Pump-and-Dump schemes. In such schemes, manipulators artificially inflate the price of a token, then sell their assets, causing the price to fall.

Famous celebrity-backed tokens. Scammers create tokens by falsely associating them with celebrities to attract investors. These schemes may involve fake celebrity accounts or their involvement in promoting memecoins.

Phishing attacks. Fraudsters often create fake versions of popular tokens or memecoins and use phishing techniques to steal funds.

Frontrunning (sniping) bots. These are programs that perform transactions in front of users by manipulating prices. Sniping bots can be used to buy tokens in front of other buyers and then sell them for a profit.

Honeypot schemes. Tokens are created in such a way that they can be bought but cannot be sold. Fraudsters lure investors, but users are unable to withdraw their funds, and as a result lose all the money they invested.

Airdrop scams. Scammers offer fake airdrops – free token giveaways – to attract users and get them to hand over their personal information or send funds to receive “free” tokens.

Private alpha groups. Scammers lure investors into closed groups with exclusive information about lucrative investment opportunities. These groups often dispense bogus or irrelevant advice and conduct fraudelent schemes to defraud participants.

Social engineering. Scammers can use psychological techniques to convince people to invest in memecoins. They can manipulate investors’ emotions by inducing fear of missing out (FOMO) so that they make quick decisions without due diligence.

How to protect yourself

Here are some strategies to protect your investment from memecoin scams:

• Familiarize yourself with information about scammers’ schemes.
• Avoid emotional investments and do your own research (DYOR).
• Assess public perception of the project.
• Use only official sources of information.
• Separate assets and start with small investments.

What to do if you have been the victim of a scam

Unfortunately, if you have been the victim of a memecoin scam, your options may be limited. However, it’s important to realize that there are always steps you can take to protect your interests and prevent further losses. Here is what you should do if you find yourself in this situation:

1. Stop all interactions

The first and most important thing to do is to immediately stop all interactions with the project or scammers:

• Stop trading with a memecoin that turns out to be fraudulent.
• If you are still on the platform, exit immediately and stop any transactions.
• If you have used a wallet or address associated with this memecoin, stop using it immediately.
• Avoid further communication with scammers. Do not respond to messages, do not visit sites they recommend to you, and do not open suspicious links.

This will help you minimize potential losses and avoid manipulation.

2. Document all activities

In order to deal with fraudsters as effectively as possible, it’s important to document everything related to the incident:

• Write down the address of the token that turned out to be fraudulent.
• Save the addresses of everyone involved in the project, including the creators, if known.
• Take snapshots of all fraud-related transactions, whether sending tokens, withdrawing funds, or other actions related to the loss of your funds.
• Keep copies of all messages, correspondence, notifications or any other evidence that may confirm that you have been a victim of fraud.

This information will be useful for investigation and may play an important role in helping you recover funds or prevent further losses.

3. Contact a security professional

If you’ve been a victim of memecoin fraud, it’s wise to contact professionals who can help you investigate and minimize the damage. These could include:

• A blockchain security expert who can help with analyzing smart contracts and identifying vulnerabilities.
• Cryptocurrency security experts who can help protect your assets.
• Lawyers if you want to start legal proceedings or file a complaint with the relevant authorities.

Experts can help you not only protect your funds in the future, but also provide advice on how to proceed.

4. Contact the authorities

If the amount of your losses is significant or the fraud is extensive, it is worth contacting the authorities. Depending on the country, you may be able to:

• Contact the police or other law enforcement agencies if the fraud involves large sums of money or a violation of the law.
• Complain to regulatory authorities that deal with the cryptocurrency industry.
• If exchanges were involved in the project, you can contact them to request assistance in resolving the situation.

You should not expect that fraudsters will be caught quickly. However, the involvement of official bodies can help prevent further actions of the perpetrators.

5. Report fraud publicly

In order to warn other users and avoid new victims, it is important to report the scam publicly. This can be done through:

• Posting on social media to warn others against this project.
• Posts on forums and platforms such as Reddit or Bitcointalk, where users can discuss cryptocurrency projects and share experiences.
• Reports in specialized cryptocurrency media.
• Active participants in the crypto community, such as blockchain sniffer ZachXBT.

The more people who become aware of the scam, the less likely it is to continue.

6. Clean out your wallets and devices

Once you have ended all interactions with scammers and documented the incident, you need to take steps to protect your remaining funds:

• Check your wallets and devices. If your cryptocurrencies are stored on a computer or mobile device, make sure they have not been compromised.
• Change all passwords and access keys associated with cryptocurrency wallets and accounts on cryptocurrency platforms.
• Transfer any remaining funds to a safe place. Use cold wallets to store your funds to minimize risks.

Update passwords regularly and use two-factor authentication for all your accounts.

Conclusion

Memecoin scams are a serious threat to cryptocurrency investors. It is important to remember that the steps taken can help minimize losses and protect your funds in the future. Feel free to seek help and share your experience with others to prevent similar situations from happening again.