Russia’s central bank warns scammers weaponized memecoins, tap-to-earn games

The Central Bank of Russia has issued a public warning, warning that malicious actors are increasingly using memecoins and tap-to-win games to deceive victims.

The Central Bank of Russia reported on Monday that financial scams have increased rapidly in the first half of 2024, highlighting a significant increase in fraudulent activity related to memecoins and tap-to-win games.

According to the document, the Central Bank found that more than 3,490 institutions exhibited Ponzi scheme characteristics in the first six months of 2024, representing a 43 percent increase compared to the same period in 2023.

A significant portion of these Ponzi schemes were found in the economic games sector, such as “tap-to-earn” token-based mobile applications that gained momentum after Telegram founder Pavel Durov began actively promoting them. The Bank of Russia did not specify a specific project, but emphasized that scammers use “viral media trends” to lure victims.

Use of ‘exaggeration’

“Them [scammers] “Use viral media trends for promotion, such as popular clicker games and hype around memecoins. More than 14% of illegal projects operated in the form of economic games,” The Bank of Russia noted.

The central bank also observed a rise in “hybrid” schemes that offer users so-called investment opportunities and trading across a variety of assets, including currency pairs and cryptocurrencies. The report noted that 59% of suspected Ponzi schemes accepted contributions in cryptocurrencies, while 36% used foreign payment services.

Tap-to-win games have gained popularity across Eurasia, allowing users to earn digital points (with the promise of conversion into real tokens) by performing simple actions such as repeatedly tapping the screen. These games have become quite popular due to their low barriers to entry and the appeal of winning prizes with minimal effort.

Telegram-based Notcoin (NOT) led the trend, generating significant interest with its viral marketing and gamified earning strategies. Other tap-to-earn games have since emerged, but primarily on Telegram. The latest, Hamster Kombat (HMSTR), has even come under scrutiny from a Russian lawmaker who called for the apps to be banned in Russia due to fraud concerns.