© Reuters
Following the recent volatility in the price of Dogecoin, a prominent advocate of the cryptocurrency has issued a warning against fraudulent schemes. Mishaboar, a known Dogecoin advocate, has raised concerns about new tokens that exploit Dogecoin’s branding to deceive investors with “pump-and-dump” tactics and potential long-term devaluation strategies.
Mishaboar’s warning comes at a time when Dogecoin enthusiasts are seeing price fluctuations, with a recent peak at $0.01 followed by a sharp decline. The lawyer stressed the importance of investor vigilance to recognize and avoid complex scams and outright lies spread by those seeking to capitalize on Dogecoin’s popularity.
The alert particularly highlights the dangers of new tokens that mimic the image of dogecoin and could lure people into investing under false pretenses. Scammers often employ strategies involving sudden price increases that entice buyers to invest quickly, but the value plummets soon after when the scammers sell their holdings en masse.
Additionally, Mishaboar warned that these schemes could also involve legal issues related to trademarks, which could further harm investors. Given these risks, Dogecoin supporters are advised to exercise caution and conduct thorough research before engaging in any cryptocurrency that appears to be associated with Dogecoin or its community.
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