Elon Musk-inspired alt coins and dog-inspired alt coins are sprouting up like mushrooms in the crypto sector. While red flag altcoins are common, crypto researcher Max Maher investigated how CoinMarketCap listings and official social media posts can help new projects appear more legitimate.
What exactly is this alternative “DOE-ing?”
Maher investigated not only the meme coin Dogs of Elon [DOE], but also how it was promoted by CoinMarketCap, other major exchanges, and influencers. He stated the following about CMC:
Maher was also concerned about the fact that DOE was on 1.5 million watchlists, placing it ahead of even major alt coins like XRP – despite DOE’s much smaller market cap. According to Etherscan, there were only 7,000 holders of the Elon-inspired token at the time of publication.
While the Dogs of Elon website claimed that CertiK had audited its token and NFT contracts, Maher claimed that he discovered no information about the project’s founders. Furthermore, he allegedly performed a reverse image search of the founders’ now-deleted profile photos and was directed to a generic image website.
DOE was trading at $0.141 at the time of publication.
It hasn’t been a perfect history.
CoinMarketCap has listed tokens even when its market caps or other self-reported figures could not be verified. In addition, the company has been accused of allowing wash trading. This is a practice in which artificial transaction activity is used to climb to the top of search engine rankings.
“Then I went to CoinMarketCap’s Twitter and saw that they had tweeted about Dogs of Elon to their over three million followers five times in just twelve days – for a project that is now in the top 700.” It’s not the biggest project in the world, and when they first started tweeting about it, it was small.”
“And, if you scroll through CoinMarketCap’s Twitter, you’ll notice that talking about a project this frequently is unusual.”
Maher also mentioned how influencers were promoting DOE, which increased investor confidence in the project’s infancy.
Should you go husky riding?
HUSKYX, another dog-inspired alt coin, drew attention with its 67,000 percent gain in a single day. While CoinMarketCap did list the project, it was riddled with red flags such as spelling/grammar errors on the official website and even an offer to give away an Apple iPhone 12 Pro Max in exchange for increasing the market cap.