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Dogecoin imitators usually look like rug pulls

The meme coin hype around Dogecoin has produced a lot of copycats.

By Mike Hesp
• 3 min read
Dogecoin imitators usually look like rug pulls

The meme coin hype around Dogecoin has produced a lot of copycats. Many of them are just scams.

Dogemoon, Dogelon Mars, Dogefather, Dogeking and for soda lovers, Dogecola or Dogepepsi: the tail attached to Dogecoin, the popular meme coin with the cute Shiba Inu look, isn’t just long. There can be a big risk for investors. Behind the projects are often savvy scammers. The most recent example: Teddy Doge.

Dogecoin spin-off revealed as a scam

The name might have given us a hint, but now it’s clear: with View post on X another scam coin was created, siphoning people’s money straight into the pockets of the masterminds.

The cryptocurrency has turned out to be a classic rug pull, as PeckShieldAlert announced on Twitter. According to the report, the developer or developers "used the contract, sent a large amount of Teddy, and then pumped and dumped" the price. Meanwhile, the coin is 99 percent red.

A lucrative scheme: according to the blockchain security company, the perpetrator amassed 10,000 BNB tokens, equal to about 2.5 million USD. Additionally, two million USD of the stablecoin BUSD was siphoned off.

What are Rug Pulls?

Scammers have come up with creative methods to walk away with investors’ money. Rug pulls aren’t particularly inventive, but they’re highly profitable.

Rug pulls usually follow the same playbook. Fraudsters develop a token, list it on a decentralized exchange (DEX), dress it up with a catchy name (often resembling well-known memes like Dogecoin and Shiba Inu), publish a meaningless white paper, push the coin via social media, and ultimately drain the liquidity pools. Prices then crash by nearly 100%. What remains are disappointed investors.

Due to a lack of regulation, the DeFi market (decentralized finance) looks especially vulnerable to rug pulls. Moreover, developing standardized tokens requires little to no prior technical knowledge.

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