Attackers are increasingly using trusted social media accounts to fraudulently sell tokens to users. This pattern resurfaced on July 13, when hackers compromised verified SpaceXAI and Starlink
These tweets received a lot of attention, with one post gaining more than 72,000 views within minutes.
Many people who viewed the tweets believe that the token has an increased level of legitimacy, which creates additional buying pressure on the token.
Meanwhile, the attacker had already minted 10 trillion SCATMAN coins before the campaign began. The portfolio then dumped its holdings for 73.7 Ethereumvalued at approximately $135,000. The token briefly approached $2 million market cap before liquidity disappeared, losing 98% of its value.
This incident demonstrated once again how high-profile compromised accounts can quickly turn online trust into exit liquidity for coordinated cryptocurrency scams.
Liquidity failed to maintain the rise
This borrowed credibility immediately extended to the market, where demand for speculation rose as quickly as the spread of fraudulent posts.
As early buyers flocked to SCATMAN, the total market value skyrocketed to nearly $2 million in just minutes. Trading activity intensified, as trading volume rose to $5.7 million through approximately 44,925 transactions.
The initial liquidity available to absorb buying pressure fueled the rally. However, when the attacker sold his shares again to meet this demand, the price fell by more than 98%. In less than 24 hours, only $3,900 remained in liquidity.
Although buyers slightly outnumbered sellers during most of the short-lived bubble. Notably, when these concentrated exit decisions hit the market, it quickly became clear that the market did not have enough liquidity to maintain those levels of buy/sell orders.
Final summary
- SCATMAN revealed how hacked X accounts continue to fuel token launches through borrowed social credibility.
- The resulting hype caused SCATMAN’s market capitalization to rise to $2 million before the liquidity disappeared.
