Metallica’s social media account was recently compromised, leading to the unauthorized promotion of a new cryptocurrency token, $METAL, falsely advertised as a collaborative effort with Ticketmaster. This incident has shed light on the vulnerabilities within celebrity-associated blockchain ventures and the rapid response needed to prevent potential scams.
The Deception Unveiled
On June 26, hackers gained control of the iconic rock band Metallica’s X social media account. They swiftly posted announcements about $METAL, a new token purportedly in partnership with Ticketmaster, leveraging the Solana blockchain. The posts promised significant discounts and staking rewards for purchases at Metallica concerts and affiliated merchandise. However, Ticketmaster confirmed that no such partnership had been established, exposing the promotions as fraudulent.
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The allure of exclusive offers and staking rewards was hard to ignore. The hackers advertised that token holders could redeem their $METAL for unique items, such as free concert tickets and custom gaming consoles. This tactic is not new in the crypto-sphere, often used to entice quick investments from unsuspecting fans and investors during the initial hype.
MoonPay Steps In
As the situation unfolded, MoonPay, a fintech firm associated with cryptocurrency transactions, was also wrongly implicated. Keith Grossman, President of MoonPay, took to X to clarify, stating,
“Please be careful. MoonPay does NOT support $METAL on Solana.”
He further emphasized the risk of scams in a subsequent post, advising the community to keep their digital keys safe and to approach such offers with skepticism.
Analyzing $METAL’s Market Impact
The $METAL token exhibited a brief surge in market value, peaking at $3.37 million shortly after the fraudulent posts went live. However, the excitement was short-lived as the token’s value plummeted nearly 100%, bottoming out at a market cap of $90,000 in less than three hours. This dramatic rise and fall are indicative of a typical pump-and-dump scheme prevalent in less regulated markets like cryptocurrencies.
