The recent surge of the low market cap coin Tate (TATE), allegedly not linked to influencer and former kickboxer Andrew Tate, has seen an impressive 50,000% pump on Uniswap before experiencing a 96% crash. Despite the massive gains, it is crucial to note that the influencer has not mentioned $TATE on his Twitter account, @Cobratate.
Although Tate has criticized traders for indulging in “shitcoins” and referred to altcoin buyers as “sluts” earlier this month, he has also advocated for purchasing Bitcoin in the past. Interestingly, shortly after his statement on altcoin buyers, a $SLUTS token surged significantly on Uniswap before crashing 70% from its highs.
The association between Andrew Tate and various cryptocurrencies has, in the past, led to the emergence of several pump and dump scams. Some examples include Andrew Tate Inu, Tate CEO, and $ANDREWTATE. The launch of $TATE on April 25 signifies the latest addition to these shady endeavors.
Currently, $TATE is not listed on any centralized exchange (CEX) platforms and boasts a market cap of over $500,000. Regardless of its massive crash, the TATE token maintains a relatively positive DEXTscore rating of 93/99. However, it is worth mentioning that the token comes with a smart contract warning—modifiable trading tax, as revealed by the automatic audit results for its DEXTools TATE/WETH pair.
A similar situation occurred with another relatively unknown cryptocurrency, Tao Coin (TAOTAO), which recently ranked among the “hot pairs” of trending crypto coins on DEXTools. However, after its rally, the coin witnessed a complete 100% crash, reminiscent of the infamous Squid Games crypto that rugpulled its investors. The market cap for $TAOTAO has now plummeted to a meagre $4.
The precarious nature of low market cap coins and seemingly opportunistic ventures should serve as a reminder for investors to exercise caution and perform thorough research before diving into such investments. Scams and massive losses have been associated with such allocations in the past, and risks associated with largely unknown projects and tokens should be considered before making any decisions.