Crypto influencer promotes scam, reimburses victims and apologizes

Crypto influencer Eunice D. Wong has recently come under fire for promoting a scam memecoin known as ThaddeusToken, stirring up a storm in the crypto community. The question resurfaced after a crypto scam sleuth reported on the matter.

ZachXBT claimed that the memecoin used Squidward — a popular character from the Spongebob Squarepants animated series — as its mascot is a honey pot scam.

His tweets about the incident called out Wong for her endorsement of the token. The tweets sparked a wave of backlash against Wong, who boasts a follower count of over 126,000 on Twitter.

Thaddeus is recognized as a honey pot by CoinBrain, which explains that its smart contract contains a malicious code which allows only the contract owners’ wallets to withdraw from the coin liquidity pool.

GeckoTerminal also highlights that the token features a sell tax of 100%, meaning that selling the tokens would result in losing the entire balance.

In response to the criticism, Wong apologized and admitted her failure in performing adequate due diligence before promoting the token. She also offered to reimburse victims of the alleged scam.

“Update: Eunice will be refunding victims of the scam. I have verified two victims that were refunded in full. Please send her a DM if you fell victim. Happy to see she made the right decision by refunding.”

ZachXBT.

Wong herself also issued an apology on her Twitter profile, reiterating that she will “recover the losses to the pople who dm’ed.”

However, this is not the first time Wong has faced accusations related to her crypto endorsements. In June, she was embroiled in a controversy involving a pump and dump scheme with low market cap token Covesting (COV).

Wong promoted the token in a tweet, only to publicly announce a mere 12 minutes later that she had sold it for a 102% profit. The recent controversy surrounding Wong underscores the broader challenges in the crypto market, particularly the influence that high-profile figures can have over novice investors.

It also serves as a cautionary tale, reminding the community about the crucial importance of due diligence before investing in any cryptocurrency, no matter who promoted it.