Lookonchain, a blockchain analysis platform, highlighted an ingenious yet deceptive scam concerning fake WETH (Wrapped Ethereum) in the crypto market.
The swindle involves scammers creating counterfeit WETH tokens, transferring these from reputable wallets, and buying memecoins. This elaborate trick may lead to investors falsely assuming these well-known wallets are purchasing memecoins, potentially influencing them to follow suit. Lookonchain reported; “Scammers created fake “WETH” and call the contract to transfer fake “WETH” out from famous wallets and transfer in memecoin.”
The illusion of legitimate transactions
A case in point involved scammers fabricating WETH tokens and executing a contract that transferred these fake tokens from DWF Labs’ wallet. The bogus tokens were then used to acquire the memecoin, “PSYOP.” This fraudulent activity can easily mislead the unsuspecting eye, particularly when observing this transaction through platforms like Debank or Zerion. At first glance, it seems DWF Labs procured PSYOP with WETH.
2/ For example:
Scammers created fake “WETH” and call the contract to transfer fake “WETH” out from DWF Labs and transfer in “PSYOP”.
Whether we use Debank or Zerion to view this transaction, it is easy to mistakenly believe that DWF Labs bought “PSYOP” with “WETH”. pic.twitter.com/ebwK6b5E0G
— Lookonchain (@lookonchain) June 25, 2023
However, a deeper dive into the transaction details reveals a completely different reality. Contrary to initial appearances, this transaction did not originate from DWF Labs.
Unmasking the scam: The importance of verification
Lookonchain recommends scrutinizing the “From” address in transaction details to better equip investors with the tools to identify such scams. A legitimate transaction involving DWF Labs and the real WETH was analyzed as an example. The “From” address in the transaction details was verified as DWF Labs, confirming the transaction’s authenticity.
Hence, if an investor observes a well-known wallet supposedly purchasing a memecoin, it is crucial to validate whether the “From” address genuinely belongs to that wallet. This simple yet effective method could distinguish between falling for a scam and making a wise investment.
The current market scenario of WETH
At press time, WETH trades at $1,889.09, with a 24-hour trading volume of $918,694,828. According to Coinmarketcap, despite a minor drop of 1.18% in the last 24 hours, WETH remains a significant player in the crypto market. Although it’s current ranking on CoinMarketCap is #2615, with its live market cap not available, WETH’s role in the market cannot be underestimated.
WETH Daily Price chart, Source: Coinmarketcap
According to experts, In the ever-evolving and complex world of cryptocurrency, scams like the fake WETH fraud underline the importance of vigilance and due diligence. While the allure of following in the footsteps of notable wallets may seem tempting, it is essential to verify each transaction thoroughly. After all, as the crypto adage goes, “Don’t trust, verify.”