The Bank of Russia recently issued a warning about the increasing use of memecoins and tap-to-earn games by scammers to deceive victims. In a report released on Monday, the central bank highlighted a rapid growth in financial scams during the first half of 2024, with a particular focus on fraudulent activities related to memecoins and tap-to-earn games. The report revealed that over 3,490 entities exhibited characteristics of Ponzi schemes, representing a 43% increase compared to the same period in 2023.
A significant number of these Ponzi schemes were found in the realm of economic games, such as tap-to-earn games, which are mobile applications that reward users with digital points that can be converted into real tokens by performing simple actions like tapping the screen repeatedly. These games gained popularity after being promoted by Telegram’s founder, Pavel Durov. While the Bank of Russia did not mention any specific projects, it emphasized that scammers are taking advantage of viral media trends to attract victims.
According to the Bank of Russia, scammers are leveraging trends like the hype around popular clicker games and memecoins to promote illegal projects. In fact, over 14% of illegal projects operated in the form of economic games. The central bank also noted an increase in “mixed” schemes, which offer supposed investment opportunities and allow users to trade in various assets, including forex pairs and cryptocurrencies. The report revealed that 59% of suspected Ponzi schemes accepted contributions in cryptocurrencies, while 36% used foreign payment services.
Tap-to-earn games have experienced a surge in popularity across Eurasia, offering users the chance to earn digital points with the promise of converting them into real tokens. These games became popular due to their low entry barriers and the appeal of earning rewards with minimal effort. Notcoin (NOT), a Telegram-based game, led this trend with its viral marketing and gamified earning strategies. Subsequently, other tap-to-earn games emerged, primarily on Telegram. However, Hamster Kombat (HMSTR), the latest addition to this trend, has faced scrutiny from a Russian lawmaker who has called for these applications to be banned in Russia due to concerns about potential scams.
In conclusion, the Bank of Russia’s warning sheds light on the increasing use of memecoins and tap-to-earn games by scammers to deceive victims. With a significant rise in financial scams, particularly in the realm of economic games, it is crucial for individuals to exercise caution and conduct thorough research before engaging in any investment opportunities or online activities. As the popularity of tap-to-earn games continues to grow, regulators and lawmakers will need to take proactive measures to protect consumers and prevent fraudulent activities within this sector.
