Traders experienced substantial financial losses following the hacking of soccer superstar Kylian Mbappé’s X account on August 29, which was used to promote a deceptive cryptocurrency scheme. This incident underscores the growing issue of celebrity-associated crypto scams which exploit public trust.
The hacker exploited Mbappé’s social media influence by posting fraudulent endorsements for a newly minted cryptocurrency, the Kylian Mbappé (MBAPPE) token. This led to a temporary market frenzy where the token’s value surged to an astounding $460 million. However, it soon plummeted to under $100,000, leaving many investors with significant losses.
One particularly striking case involved a trader who lost over $1 million. This individual invested heavily in the MBAPPE token using Solana tokens worth approximately $1.03 million, only to find the investment’s value collapse to just $9,200 within an hour—a stark illustration of the rapid losses that can occur in crypto trading due to fraudulent activities.
The Scale of the Impact
The incident has not only affected high-stake traders but also highlighted the volatile nature of meme coins and scam tokens that can attract attention through high-profile social media accounts. Earlier instances in August, such as the crash of a President Trump-themed memecoin, have similarly reflected the precariousness of investing in such assets amid broader market downturns.
Following the hack, major crypto firms, including Crypto.com, quickly reacted to caution their users against the scam. Crypto.com, recognized as the world’s 13th largest centralized cryptocurrency exchange, explicitly warned its traders through an X post about the deceptive nature of the MBAPPE token.
Contrasting Fortunes
Despite the widespread losses, some traders managed to capitalize on the volatility. A savvy investor turned an initial $28 investment into nearly $124,000 by timing the market effectively before the token’s value crashed, as noted by a pseudonymous trader on X. This trader’s success, however, is an exception in the broader context of significant financial damages suffered by most.
This incident serves as a critical reminder of the security vulnerabilities in social media and the potential for significant disruption in the crypto markets due to such breaches. It also underscores the importance of vigilance and the need for enhanced security measures to protect against similar scams in the future.
| Event | Impact |
|---|---|
| Hack of Mbappé’s Account | Initiation of the scam |
| Promotion of MBAPPE Token | Surge to $460M market cap followed by a collapse |
| Major Trader Losses | Over $1M lost by a single trader |
| Crypto Community Response | Warnings issued by major exchanges like Crypto.com |
| Profit from Volatility | Significant gains by a few amid general losses |
The hacking of Kylian Mbappé’s X account and subsequent crypto scam reveal the dual nature of cryptocurrency investments: while they can generate substantial returns, they also pose significant risks, especially when associated with fraudulent activities. Investors are urged to exercise caution and prioritize security in their digital transactions.
Featured image credit: Davidlaura via GoodFun
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