The reason Justin Sun gets so many memecoins

Love him or hate him, one has to admit that  Justin Sun never fails to create excitement and attract attention with his bold promises.

Most recently, the Tron founder announced his intention to start trading memecoins and “potential projects” using his public wallet address. He also promises to donate any profits he makes to charity.

After two days of posting, the tweet has attracted more than 2.3 million views and more than 6,700 likes. Some users speculated that this was the crypto billionaire's tax deduction tactic.

Glassnode Accointing tax compliance service commented: “He wants to reduce taxes and make the world a better place with memecoin, you will love it”.

Crypto Rand account, @crypto_rand on Twitter, also supports  this view: “Losing taxes?”

These taunts aren't too surprising since the founder of Tron is known for his history of not putting money where his mouth says it will.

Sun cautions against confusing his transactions with financial advice, adding that there is no guarantee any project he buys will be listed on exchanges he is affiliated with like Poloniex and Huobi Global.

“I just trade coins for fun. Do your research before you invest,” he said.

There is a memecoin craze. Photo: BSC News.

However, some crypto community members also suggested that it is possible that this move was staged to make ordinary users FOMO token memes.

Right after Sun's tweet announcing the memecoin transaction "for fun", the opportunists did not miss the opportunity when "bombing" him with countless junk tokens such as WEED, Justin Sun Inu, JINU...

Sending memecoins to Sun - to make it look like he's buying them - is a common ruse to make traders think a particular token market is about to heat up, The Block analyst Steven Zheng said.

“It is not surprising that after Sun’s tweet, we see a large amount of memecoins being sent to his account,” Steven said.

This incident comes amid a craze sweeping through memecoins, or tokens, with no other purpose than speculation. The promoters of these memes are finding attention through Sun's massive community platform — and using his own network to their advantage.

This is also a favorable environment for scammers looking to take advantage of unwary token holders. Earlier this week, a pepe-themed NFT scam went viral on Twitter, initially organized in a form that looked very credible.

Sun's wallet is flooded with junk tokens. Source: Etherscan.

PeckShieldAlert appears to be the first to notice this unusual activity and has posted an alert on Twitter.

Sun “continues to receive more shitcoins following his tweets,” the post said. “We noticed that a few days ago a gang of scammers created four fake coins and used one wallet to pretend to be Justin Sun.”

It's not new for scammers to use public wallets for malicious purposes. In October 2022, online analytics platform Lookonchain reported  that its users lost ETH to the Justin Sun Inu token. The scammers moved their meme tokens to the public wallets of celebrities.

These moves can fool wallet followers into believing that a celebrity is amassing a particular coin. For example, in March, BeInCrypto reported that Vitalik Buterin was dumping tokens like MOPS, CULT, SHIK, and BITE worth more than 220 ETH.

In addition, anyone can now create a memecoin in as little as 27 seconds, so the magnitude of this coin's scam is sure to increase over time.

In the midst of the memecoin confusion, on May 7, Justin Sun-related blockchain networks — Tron and BitTorrent — called on memecoin developers to use their ecosystems to develop new memecoins. tokens.

According to Sun's statement (here), the networks will incentivize developers with up to $1 million in grants to reimburse transaction gas fees, while supporting innovations and marketing for developers. this development.

Besides, TRON DAO will establish a Memeverse fund to reward the most popular token meme projects in the Tron ecosystem. In addition, projects developed on these networks will also be prioritized for listing on Huobi and Poloniex.