The X account of Dogwifhat, a dog-themed meme coin, became the target of a major hack on November 14, 2024. This incident led to scammers hijacking the account to promote three lesser-known meme coins built on the Solana blockchain: Popwifnut (POPWNUT), Muu (MUU), and DogWifDoge (WIFD). The breach highlighted the ongoing vulnerabilities in the cryptocurrency space, particularly the use of social media platforms to manipulate market prices and deceive investors.

In this blog post, we’ll break down the hack’s details, how the scam was executed, the consequences for the affected tokens, and what steps can be taken to protect crypto projects and investors in the future.

The Hack and Its Execution

On November 14, 2024, the Dogwifhat X account, which had amassed a large following of over 115,000 followers, was hacked by fraudsters. The attackers quickly rebranded the account’s profile, altering its description to promote three newly minted meme coins: Muu (MUU), Popwifnut (POPWNUT), and DogWifDoge (WIFD). These tokens, all created less than 24 hours earlier, were used to deceive Dogwifhat’s followers into buying them.

The scammers posted contract addresses for each coin, urging followers to purchase them. The posts looked legitimate to many, with the account’s profile seemingly endorsing the tokens. This led to a surge of purchases from unsuspecting followers who believed the posts were coming from the official Dogwifhat account.

In addition to the promotional posts, the attackers also rebranded the account with references to the promoted coins, giving the illusion of official endorsements. This made the scam appear even more credible and caused a temporary spike in interest and trading volume for the three coins.

Market Impact of the Hack

The results were almost immediate. Following the fraudulent posts, the three promoted meme coins saw significant price surges:

• MUU: This token, which had only been created a few weeks prior, experienced an all-time high shortly after the posts went live. Its price surged despite initially trading sideways, suggesting a manipulation of market sentiment by the scammers. However, the rise was short-lived as those behind the attack liquidated their holdings at the peak, causing the price to quickly crash back down.
• POPWNUT and WIFD: Both of these tokens had been created less than 24 hours before the hack. They experienced similar sharp price spikes, only to drop by 83% or more within hours of reaching their highs. This led to significant losses for those who bought into the tokens during the manipulated pump.

At the time of writing, the market caps for POPWNUT and WIFD were both under $40,000, reflecting the brief and unsustainable nature of the price manipulation.

The Dexscreener data confirmed the price action, highlighting the unusual and rapid price fluctuations that typically accompany such scams. These kinds of “pump and dump” schemes have been a recurring issue in the crypto space, particularly with meme coins that lack inherent value and are susceptible to market manipulation.

Dogwifhat’s Recovery and WIF’s Stability

Fortunately, the developers of Dogwifhat were quick to regain control of their account. They managed to remove the fraudulent posts, restore the original profile information, and regain the trust of their community. Despite the hack, WIF’s price remained relatively stable compared to the manipulated meme coins.

Although there was a 17% correction in the price of WIF following the breach, this minor decline was likely due to the broader market’s reaction to Bitcoin’s 2.4% drop rather than a direct result of the hack. The token was also benefiting from the Coinbase listing that had occurred just days prior, which had driven its price above the $4 mark for the first time since April. Over the past seven days, WIF posted gains of over 50%.

This recovery highlights the resilience of established tokens that have a solid backing, even in the face of market manipulation. However, it also underscores how easily newer and less recognized coins can be subject to price manipulation and scams.

The Growing Threat of Crypto Scams on X

The Dogwifhat hack is far from an isolated incident. It is part of a larger, worrying trend where X accounts of prominent crypto projects are being hijacked by scammers. These attackers use compromised accounts to promote fraudulent coins, fake airdrops, or phishing schemes, taking advantage of the trust followers place in official profiles.

Other recent hacks include:

• Decentraland’s X account hack on September 19: Scammers used the account to promote a fake airdrop that was a phishing campaign designed to steal users’ funds via approval phishing.
• Major X account breaches: Notable accounts like Yahoo News UK, Lenovo India, and People were hijacked to promote fraudulent crypto schemes, demonstrating that even high-profile brands are not immune to this kind of attack.

These incidents serve as a warning to both crypto projects and their communities about the vulnerabilities that exist on social media platforms.

How to Protect Crypto Projects and Investors

This hack serves as a reminder of the importance of cybersecurity in the cryptocurrency space. Here are some key takeaways for both crypto project developers and investors:

For Project Developers:

1. Use Multi-Factor Authentication (MFA): Enabling MFA on all accounts is one of the simplest and most effective ways to protect social media profiles from being hijacked.
2. Regular Account Monitoring: Monitoring for unusual activity can help catch fraudulent posts early before they cause significant harm.
3. Prompt Communication: If an account is compromised, developers should immediately communicate with their community, alerting them to potential scams and outlining steps to avoid them.

For Investors:

1. Verify Official Announcements: Always check for official announcements on a project’s website or verified channels. Avoid engaging with unverified posts or clicking on suspicious links.
2. Use Security Tools: Leverage tools like Harpie or MetaMask’s in-built security features to stay informed about potential scams.
3. Be Wary of Pump and Dump Schemes: When a token’s price rises dramatically in a short period without any significant news or updates, it’s often a sign of manipulation. Always approach such volatility with caution.

Conclusion

The Dogwifhat X account hack is a reminder of the persistent dangers in the cryptocurrency market, especially for newer projects and meme coins. While the developers were able to recover quickly, the incident highlights the importance of proactive security measures, both for projects and investors. As the industry continues to grow, the need for better security practices and a vigilant community will be critical to combat these types of scams and protect the integrity of the crypto space.

Stay alert, and be sure to double-check everything when navigating the world of meme coins and cryptocurrency.