Alleged Scam by Fake Developer Prompts Cryptocurrency Market Plunge

On January 5, a Twitter user, posing as a PNUT developer, falsely claimed massive trading profits, impacting cryptocurrency markets by manipulating memecoins through a fraudulent scheme.

This incident highlights vulnerabilities in cryptocurrency markets, stressing the need for oversight and investor caution amid increasing complexities and risks associated with memecoin trading.

$860,000 Turned to $100M Claim Fuels Trading Frenzy

Community response was swift after the ensuing price collapse of HNUT, which fell by 99.99%. The crash hinted at a potential exit scam, as funds rapidly consolidated at a central wallet. Investigations showed patterns of insider trading and orchestrated coin manipulation, affecting other coins like SHEKER and FAFO.

It appears that the search has not yielded any specific quotes or statements from key players, experts, or official sources related to the events involving PNUT and HNUT, nor any other cryptocurrencies mentioned.

54.95% Token Price Drop Ignites Regulatory Concerns

Did you know? The scam mirrors the historical Meteora memecoin incident on Solana, where insiders manipulated token supply, leading to $69 million in investor losses.

CoinMarketCap reports Peanut the Squirrel (PNUT) has a current market price of $0.09, holding a fully diluted market cap of $94.66 million with a trading volume of $57.07 million, declining by 36.5%. The token saw a 54.95% drop over 90 days as of January 5, 2026.

The Coincu research team suggests the event might trigger stricter regulatory measures in efforts to safeguard investors, drawing from historical trends in cryptocurrency fraud. They anticipate heightened scrutiny from authorities, aiming to curb similar rug pull occurrences in the future. For further guidance, you can refer to the Crypto Scam Tracker by the California Department of Financial Protection.