Nasdaq’s X Account Hacked, Used for Fraudulent Memecoin Promotion

Nasdaq’s official X (formerly Twitter) account was recently compromised and used to promote a fraudulent memecoin called STONKS. 

The hacker exploited the account’s credibility by linking a fake X account as a Nasdaq affiliate, then retweeting posts to amplify the memecoin’s visibility. 

The $STONKS token was reportedly created on the same day as the hack and presented as a counterfeit of an existing memecoin on the Solana blockchain, which holds the intellectual property rights to the original. 

While the fraudulent posts have since been removed and the fake account suspended, the incident underscores ongoing vulnerabilities in social media platforms used for crypto scams.

STONKS Token Briefly Peaks Before Collapsing

During the brief promotion period, the fake STONKS token achieved a startling market valuation of $80 million, driven by speculative interest sparked by the fraudulent association with Nasdaq. 

However, the token’s value quickly collapsed, leaving investors who were lured by the apparent legitimacy of Nasdaq’s endorsement at a loss. 

The case highlights how hackers exploit reputable brands and institutions to manipulate markets, generating hype around scam tokens and profiting before the fraud is exposed. 

The rapid rise and fall of the counterfeit STONKS token serve as a cautionary tale for crypto traders navigating an industry rife with bad actors.

Also Read: Crypto-Related Hacking Incidents in 2024 See Record-Breaking Losses of $3.01B, Up 15% Over 2023

High-Profile Hacks on X Becoming a Pattern

This incident is part of a troubling trend of high-profile X accounts being hacked to promote fraudulent cryptocurrencies. 

Similar breaches have targeted well-known individuals and organizations, including Barron Trump’s X account, which was used to promote a token called $BARRON.

The account of Yat Siu, co-founder of Animoca Brands, which was used to push suspicious tokens and contracts. 

Hackers typically aim for accounts with substantial followings to maximize the reach and impact of their scams, often causing reputational damage to their victims. 

The growing pattern raises serious concerns about the security of social media platforms frequently used in cryptocurrency promotion.

Nasdaq’s Silence and Industry Implications

Nasdaq has yet to issue a statement addressing the breach, leaving questions about how the hack occurred and what measures are being taken to prevent future incidents. 

The silence from such a prominent institution further fuels concerns about accountability and cybersecurity standards across the crypto and financial sectors. 

As crypto markets increasingly rely on social media for information dissemination, incidents like this underscore the urgent need for enhanced security measures and stricter regulation to safeguard users. 

The hacking of Nasdaq’s X account serves as a stark reminder of the risks investors face in an industry where trust and credibility can be manipulated in seconds.

Also Read: Telegram Crypto Scams Surge 2000% in 90 Days, Overtakes Traditional Phishing Hacks