Market

Deepfake Crypto Scams Cause $79.1 Billion Loss in 2 Years

Published

4 days ago

June 30, 2024

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Bitget Research’s recent report highlighted a dramatic rise in scams featuring deepfake technology. According to their data, malicious technology use jumped 245% in 2024 alone.

These scams, usually leveraging fake celebrity endorsements, have become increasingly sophisticated, targeting unsuspecting investors and causing significant financial damage.

Deepfake Scams Caused $79.1 Billion Loss

Deepfake technology, which manipulates photos and videos to create hyper-realistic fake content, has been weaponized to promote fraudulent schemes. According to the report, users have lost $79.1 billion to cyberattacks involving deepfakes since the beginning of 2022.

The losses are increasing each year, with a significant surge in 2024, where the amount more than doubled, rising by 245%. Bitget estimates that potential damage from deepfake scams could reach $10 billion per quarter by 2025.

“Deepfakes are moving into the crypto sector in force and there is little we can do to stop them without proper education and awareness. The vigilance of the users and their ability to discern scams and fraud from real offerings is still the most effective line of defence against such crimes, until a comprehensive legal and cybersecurity framework is in place on a global scale,” said Gracy Chen, the CEO at Bitget, commenting on the figures outlined in the report.

Experts have identified several key methods of using deepfakes in the crypto industry. These include:

Social Engineering. Fraudsters impersonate famous people or employees of large companies to trick users into transferring cryptocurrency to them.
Bots. Deepfakes create fake accounts on social media and other platforms, which then spread misinformation and advertise fraudulent crypto projects.
Market Manipulation. Scammers use deepfakes to spread false news and rumors that can influence market prices.
Investment Fraud. Attackers create videos and presentations with deepfakes to attract funds to fraudulent projects.

Among these methods, social engineering and bot fraud accounted for 14.21% of all deepfake crimes in the first quarter of 2024. Analysts estimate the losses from these methods at $2.03 billion. If authorities do not take effective measures, the number of incidents involving malicious technology in the crypto industry could increase by 70% by early 2026.

An Ongoing Trend

The rise in deepfake technology has coincided with the growing popularity of celebrity tokens. Over the past couple of months, dozens of new meme coins have been launched, featuring both real celebrities and impersonators behind them.

Tokens such as JENNER, ZUMI, RICH, DOLL, and others have sparked intense debate within the crypto community, raising concerns about market manipulation, fraud, and the ethical implications of leveraging celebrity influence in cryptocurrency promotions.

Well-known entrepreneurs are frequent targets of scammers. On June 23, a five-hour YouTube Live broadcast featuring a deepfake of Elon Musk promoted a cryptocurrency scam, continuing the trend of similar fraudulent streams.

A deepfake live stream of Elon Musk promoting a crypto giveaway scam is currently live on YouTube with around 30,000 viewers. It’s funny how YouTube isn’t doing anything about it. pic.twitter.com/xIfQVkdgM2

— sid (@immasiddtweets) June 23, 2024

The now-removed video claimed to show a live Tesla event, using an AI-generated version of Musk’s voice to lure viewers to a website. The fake Musk urged viewers to deposit Bitcoin (BTC), Ethereum (ETH), or Dogecoin (DOGE) for a supposed giveaway, promising to “automatically send back double the amount.”

The stream attracted over 30,000 viewers at its peak, though bot inflation cannot be ruled out. It topped YouTube’s Live Now recommendations. The channel, @elon.teslastream, had the Official Artist Channel verification badge, suggesting a possible account compromise.

Cryptocurrency users should be extremely vigilant and not trust everything they see online, especially on social media platforms like X, Instagram, and others, which are the primary channels for spreading deepfakes. Experts urge everyone to verify information and use only reliable sources carefully. Additionally, using two-factor authentication (2FA) is crucial, especially for accounts related to crypto.

Disclaimer

In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.

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Market

Meme Coin Investors Exit as Bitcoin Hits New Lows

Published

42 mins ago

July 4, 2024

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As Bitcoin hits a two-month low of $57,500, numerous crypto investors are strategically exiting volatile meme coins. The broader market downturn has notably affected these digital assets, known for their speculative nature, leading to significant sell-offs.

This week, some of the investors have started booking profits. Yet, they still hold a significant amount of meme coins, awaiting market recovery.

Crypto Investors Sold Pepe, Dogwifhat, and MICHI

“Dimethyltryptamine.eth,” who owns the wallet address 0x4a2, returned after 10 months of dormancy. According to Spot On Chain, this crypto whale exchanged 10 billion Pepe (PEPE) for $112,000, converting them into 32.73 Ethereum (ETH) at a rate of $0.0000112118.

Despite the market’s volatility, this investor still possesses 1.99 trillion PEPE, currently valued at $22.35 million, which represents a staggering 59,600% increase in value.

Moreover, this investor holds substantial amounts of other meme coins. Their portfolio includes 711.7 million Wojak (WOJAK) and 147.5 billion Mog Coin (MOG), with unrealized profits of $457,000 and $824,000 respectively. These figures highlight the considerable gains still possible in the fluctuating meme coin market.

In another significant movement, BxPMj transferred 900,000 Dogwifhat (WIF) tokens, valued at $1.64 million, to the centralized exchange Bybit. Despite the market’s downturn, BxPMj’s remaining holdings in WIF are estimated at $1.76 million.

Additionally, the owner of a Solana (SOL) wallet, J2GcK, sold 8.6 million michi (MICHI) for $1.34 million, realizing a profit of $1.24 million. Initially, J2GcK had invested 578 SOL, worth $103,000, to purchase these tokens between April 8 and April 15. At their peak, the MICHI tokens were valued at over $5 million, demonstrating the high volatility and potential profits in meme coin investments.

Previously, in an interview with BeInCrypto, Tristan Dickinson, the CMO of EOS Network, discussed the behavior of crypto whales.

“Whales follow market trends and capitalize where they see an opportunity. As easily as they can liquidate, putting downward pressure on the market, they can hodl if they see an opportunity,” Dickinson told BeInCrypto

Currently, the meme coin sector has declined by approximately 13% in the last 24 hours. WIF, among the top 10 meme coins, experienced the most significant drop, declining by 13.2%.

Top 10 Meme Coins Based on Market Capitalization. Source: CoinGecko

Conversely, meme coins such as Dogecoin (DOGE) and DOG•GO•TO•THE•MOON have faced less severe impacts, with reductions of 8.6% and 7.6% respectively.

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Market

BitMEX Launches Meme Coin Index Amid Market Slump

Published

2 hours ago

July 4, 2024

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BitMEX Exchange deployed its version of an S&P 500 for meme coins on Thursday, effectively becoming the second hub to offer this kind of basket index in 2024.

Meme coins continue to ascend the ranks as crypto adoption continues to grow. Meanwhile, the development comes amid a sector bloodbath, with some altcoins posting double-digit losses.

BitMEX Launches Meme Basket Index Perp

The trading platform called its MEMEMEXTUSDT contract the “S&P 500 for crypto memecoins,” margined in Tether’s USDT stablecoin with up to 25X leverage. Like the premier US stock market index, the S&P 500, which tracks the prices of large-cap US stocks, it will simultaneously track and offer exposure to the top meme coins.

“Users can bet on the overall performance of the assets in one go, rather than holding individual tokens,” BitMEX wrote in the announcement, adding, “By trading the contract, you get exposure to the entire basket of meme coins in our Meme Basket Index, without having to hold any of the individual tokens.”

Top meme coins featuring in the basket index include Pepe (PEPE), Shiba Inu (SHIB), Dogwifhat (WIF), Dogecoin (DOGE), and Bonk Inu (BONK). Others include FLOKI, BRETT, BOME, MEME, and MOG. The weighted methodology, which is based on market share, will ensure selection on market value metrics.

The product comes barely two months after investment firm VanEck launched its MEMECOIN Index. Christened MemeVector, VanEck’s product tracks only the first five tokens that BitMEX mentioned. The asset manager disclaimed, “Coins are intended for entertainment purposes.”

VanEck’s disclaimer came as meme coins were never taken seriously in the past. Forbes describes them as “cryptocurrencies inspired by memes and internet jokes, with little or no fundamental value.” However, some traders believe them to be a global shilling point for speculative liquidity.

“Meme coins may seem unconventional, but they highlight the power of community in crypto,” Tron founder and Huobi Global advisor Justin Sun said during Token2049.

Meme Coins Go Mainstream

Indeed, meme coins are a volatile sector with a tendency for price fluctuations as determined by market sentiment. Nevertheless, they have progressively climbed the ranks in 2024, jumpstarted by the Avalanche Foundation in December, committing to support diverse and culturally significant initiatives.

“The Avalanche Foundation intends to start using Culture Catalyst to recognize and encourage the culture and fun symbolized by meme coins by purchasing select Avalanche-based meme coins to create a collection. This move complements the Avalanche Foundation’s ongoing engagement across the Avalanche ecosystem, including NFTs, RWAs, and other types of crypto assets, broadening its portfolio to embrace a more complete spectrum of possibilities,” Avalanche wrote.

The Foundation’s commitment to invest in meme coins made the sector a bona fide cryptocurrency niche. Analysts are already predicting that this sector could lead the next altcoin season.

Therefore, VanEck and BitMEX exchange launches are further advancing the niche. As meme coin adoption continues, more conservative investors could start approaching the scene just as Bitcoin spot ETFs (exchange-traded funds) brought BTC to Wall Street.

“Retail investors are drawn to meme coins because they offer the same opportunities as venture capitalists during seed, pre-seed, and private sale rounds,” Jonas Dovydaitis, Co-Founder & CEO at PAiT, told BeInCrypto.

Meanwhile, meme coins are dumping, with the sector’s market capitalization falling by almost 9% to $42 trillion. This is part of a market-wide crash led by Bitcoin, which is down 5% to trade for $57,459 at the time of writing.

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Market

Bitcoin Price Takes a 5% Hit: Can Bulls Save The Week?

Published

3 hours ago

July 4, 2024

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Bitcoin price failed to start a fresh increase above the $62,850 resistance zone. BTC started another decline and tumbled 5% to test $58,000.

Bitcoin started a fresh decline and traded below the $60,000 zone.
The price is trading below $61,500 and the 100 hourly Simple moving average.
There is a connecting bearish trend line forming with resistance at $60,000 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair might struggle to start a fresh increase above the $60,850 resistance zone.

Bitcoin Price Dives 5%

Bitcoin price struggled to start a decent recovery wave above the $62,850 resistance level. The bears took control and pushed BTC below the $61,200 support zone. There was a sharp decline below the $60,000 level.

The price declined 5% and even spiked below the $58,000 level. A low was formed at $57,890 and the price is now consolidating losses. There was a minor increase above the $58,500 level and approaching the 23.6% Fib retracement level of the downward move from the $63,798 swing high to the $57,890 low.

Bitcoin price is now trading below $61,500 and the 100 hourly Simple moving average. There is also a connecting bearish trend line forming with resistance at $60,000 on the hourly chart of the BTC/USD pair.

If there is a decent increase, the price could face resistance near the $60,000 level and the trend line. The first key resistance is near the $60,850 level and the 50% Fib retracement level of the downward move from the $63,798 swing high to the $57,890 low.

The next key resistance could be $61,500. A clear move above the $61,500 resistance might start a steady increase and send the price higher. In the stated case, the price could rise and test the $62,250 resistance. Any more gains might send BTC toward the $63,500 resistance in the near term.

More Losses In BTC?

If Bitcoin fails to climb above the $60,000 resistance zone, it could continue to move down. Immediate support on the downside is near the $58,250 level.

The first major support is $58,000. The next support is now forming near $57,800. Any more losses might send the price toward the $56,500 support zone in the near term.

Technical indicators:

Hourly MACD – The MACD is now gaining pace in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now below the 50 level.

Major Support Levels – $58,250, followed by $58,000.

Major Resistance Levels – $59,250, and $60,000.

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