Cuban government’s X account has promoted a token that is now rug-pulled, leaving investors in losses.
By Godfrey Benjamin
Edited by Marco T. Lanz
Updated
3 mins read
The Cuban government, or at least what appeared to be its official account, seemingly launched a new memecoin on the Solana blockchain.
According to The Block, the token quickly surged in value after Cuba’s Ministry of Foreign Affairs promoted it on its X platform. However, the token plummeted drastically, leading to accusations that it was part of a “pump and dump” scheme.
The drama unfolded on X when a memecoin tied to the Cuban government, dubbed “CUBA,” launched on the Solana network. As soon as the digital asset went live, it garnered attention, and within moments, its market cap skyrocketed to $30 million.
The meteoric rise was brief, as reports soon emerged that the token had been “rugged.” This is a term used when developers or creators abandon a coin after inflating its value, as seen in the case of the BaseBros DeFi project last year.
This leaves investors with worthless tokens, unable to recover their investments. The incident highlights the risks of such fraudulent practices in the crypto space.
A popular crypto influencer detailed the chain of events in a viral post. He claimed that Cuba not only launched the original CUBA token, the government also followed up with a “Cuba coin 2.0” and a third coin, “Justice for Cuba.”
The official X account for Cuba’s Ministry of Foreign Affairs was locked shortly after the launch, with the posts promoting the memecoins deleted.
This raised further suspicion surrounding the token’s legitimacy. It did not stop there as a fourth memecoin, “CUBA 4.0,” also appeared amidst the chaos.
Other Cuban-themed coins, like “#1 rugging country” and “CUBA5,” quickly followed. These token launches fueled speculation that the Cuban government account may have been hacked.
This speculation has caused the digital token’s value to drop from a high trading volume of $158.7 million to $4.3 million.
The timing of the CUBA memecoin event came when the broader crypto market saw impressive growth. The memecoin craze has been sweeping through the crypto world for months.
Solana-based tokens and ecosystems, in particular, have been gaining traction. At the same time, coins tied to public figures, like Donald Trump’s TRUMP token, have also been making waves.
This incident raises significant concerns about the crypto space’s integrity, especially regarding rug pulls – a scam where developers suddenly abandon a project after artificially inflating its value, taking investors’ money and leaving them with worthless tokens. As reported by Coinspeaker, Ripple’s CTO, David Schwartz, recently discussed the dangers of rug pulls in the crypto world.
The crypto market has witnessed multiple high-profile causes of crypto scams, including rug pulls. This includes cases like the Squid Game token, which crashed its value after a meteoric rise.
Another example is the PlusToken scam, which defrauded investors of billions. These types of incidents are a reminder of the risks that come with investing in unregulated and volatile digital assets.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
Benjamin Godfrey is a blockchain enthusiast and journalist who relishes writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desire to educate people about cryptocurrencies inspires his contributions to renowned blockchain media and sites.
