The Grimace Rug Pull: A $700,000 Heist on McDonald’s Instagram

In a brazen cyber heist, malicious actors took control of McDonald’s Instagram account to promote a bogus memecoin, netting a cool $700,000 in the process. The short-lived scam, dubbed “GRIMACE,” capitalized on the fast-food chain’s iconic purple character and the ongoing memecoin frenzy on the Solana blockchain.

The attack unfolded swiftly. Hackers, calling themselves “India_X_Kr3w,” deployed GRIMACE using Pump.fun, a platform notorious for its memecoin creation tools. GRIMACE rocketed from obscurity to a $25 million market cap within a mere two hours after launch, fueled by posts on the compromised McDonald’s account. Investors, duped into believing the token was an official McDonald’s venture, piled in.

However, the joyride was short-lived. In a classic “rug pull” maneuver, the hackers dumped their massive pre-mined holdings, sending the price plummeting to a measly $650,000 within 40 minutes. They grabbed a whopping 75% of the total supply before cleverly distributing it across roughly 100 different wallets. This orchestrated crash left investors holding the bag, with losses exceeding 95% of their initial investment.

The McDonald’s account bio, briefly hijacked by the hackers, boasted about their exploits: “Sorry mah n-gga you have just been rug pulled by India_X_Kr3w thank you for the $700,000 in Solana.” Thankfully, McDonald’s regained control of their accounts within a couple of hours and removed all incriminating posts.

McDonald’s issued an apology after hackers took control of their Instagram account on August 21st. The breach resulted in the posting of offensive content and the promotion of a fraudulent memecoin.

In a statement to the New York Post, McDonald’s confirmed that they were aware of the “isolated incident” and have since resolved the issue. They expressed their regret for any offensive language shared during the breach and assured fans that they are taking steps to prevent similar occurrences in the future.

This incident highlights the perils of the memecoin craze, particularly on platforms like Pump.fun where barriers to entry are low and rug pulls are rampant. Data reveals that only a minuscule 1.39% of tokens launched on Pump.fun have achieved any success, leaving a trail of heartbroken investors in their wake. Despite the risks, Pump.fun continues to rake in a hefty sum, boasting revenue exceeding $100 million in fees.

Solana has become a breeding ground for memecoin creation, with Solscan reporting a staggering daily average of over 17,400 tokens deployed in the past 23 days alone. This explosion can be largely attributed to Pump.fun’s aggressive strategy. They’ve slashed fees for creating tokens and even offer a 0.5 SOL bonus for those that successfully launch on Raydium, a popular Solana-based DEX.

But for every success story, there are countless casualties. Despite Pump.fun’s attempt to incentivize quality projects, a Dune Analytics dashboard reveals a harsh reality: only 1.39% of the over 1.8 million tokens created on their platform have completed the crucial bonding curve – a metric indicating a potentially sustainable project. This translates to a staggering 99% failure rate, leaving a trail of heartbroken investors and lost funds.

The McDonald’s hack serves as a stark reminder for crypto enthusiasts: DYOR (do your own research) before investing in any memecoin, especially those seemingly endorsed by major brands. The allure of quick riches can be blinding, but a healthy dose of skepticism can save you from a McScam.

Yona has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Daily is an official media and publication of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.

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