Hackers Use Celebrity Account to Promote Scam Coin, Leading to $1.6 Million Loss

Renowned artist Doja Cat’s social media account was hacked on July 8 and used to advertise a fake cryptocurrency token called “Doja Cat (DOJA).”

The incident was reported by Daily Trends and The Daily Mail, which disclosed that the hijacked account had not only promoted the fake token but also spread disparaging statements about fellow rapper Iggy Azalea.

Fraudulent Token Promotion

This hacking incident brings to light a developing pattern in which new, frequently questionable cryptocurrency assets are promoted on celebrity social media accounts.

Through a post with an image of Doja Cat wielding a sword while wearing armor, the fraudulent token swiftly gained a market valuation of $1.65 million. The tweet included the token’s Solana contract address after a strong directive to “buy $DOJA.”

The tweet denigrated Iggy Azalea, who just released her own celebrity memecoin called MOTHER, beneath this call to action, emphasizing readers to buy DOJA even more.

Following its initial ascent, the value of “Doja Cat” (DOJA) fell precipitously, reaching a market cap of just $16,820, resulting in losses for investors over $1.63 million. Within an hour of its launch, the token’s price dropped from $0.001656 to $0.00007352, according to DEXScreener.

This sharp decrease highlights a common problem with celebrity-linked memecoins, which frequently see sharp reductions in value shortly after launch.

Doja Cat’s Response

Doja Cat responded to the fraudulent activity on her account by posting a video to address her fans. She firmly denied any involvement with the false posts, emphasizing that it was not her and that the posts were fake.

She urged her audience not to trust the misleading content, clarifying that someone else was responsible for the fraudulent activity.

Iggy Azalea addressed the incident on her own social media as well, expressing her comprehension that Doja Cat was not the source of the disparaging tweet directed at her.

She showed support for Doja Cat, suggesting her calm relationship with her in real life, even in the face of the hackers’ attempt to create scandal.

This latest hacking incident is a part of a larger pattern involving the unstable memecoin market connected to celebrities. These digital currencies are routinely launched with great hoopla, promising large profits that often result in large financial losses.

Legal experts have warned that class-action lawsuits and regulatory scrutiny from the US Securities and Exchange Commission may result from the unpredictable nature of these currencies.

The Controversial Nature of the Memecoins Market

Memecoins continue to draw a lot of interest from traders and investors drawn by the prospect of substantial returns, despite the hazards involved.

Memecoin proponents contend that their reflection of wider market trends, ability to sense community emotion, and role in fostering the development of vibrant communities that may provide real value to their members are all advantages of the technology.

Opponents counter that these tokens could draw unwelcome regulatory scrutiny and harm the bitcoin industry’s reputation.

Other well-known figures have entered the memecoin space. For instance, soccer great Lionel Messi recently used his Instagram account to promote the Solana-based memecoin WATER, which caused its price to soar by 350% as a result of his support.

The promotion was greeted with suspicion despite this sharp rise, with some in the cryptocurrency industry cautioning of possible sharp drops, or “rug pulls.”

Celebrities like Iggy Azalea and Caitlyn Jenner, who both debuted their currencies on the Solana blockchain earlier this year, are examples of the trend of celebrities minting their own tokens.

Some people criticized the celebrities for allegedly trying to take advantage of their fan base without offering anything of value, in response to these acts.

The cryptocurrency market is still a complicated and divisive area that attracts criticism and interest from a variety of sources as the discussion over the benefits and drawbacks of memecoins rages on.

The desire for rapid financial gain from these digital assets supported by celebrities continues to spark intense debate, highlighting the volatile and contentious nature of the cryptocurrency market.