The crypto ecosystem is abuzz as a new meme coin, CATDOG, captures attention. It’s not just its quirky name drawing eyes but the brewing controversy around it.

While many famous influencers are promoting it, others warn that it is a scam.

Bubblemaps Reveals CATDOG Supply Concentration

Recently, pseudonymous crypto influencers like Cyclop, Klarck, Rekt Fencer, Ardizor, and Symbiote took to Twitter, subtly promoting CATDOG. They hinted at a potential market cap explosion from its current $69 million to billions. However, a deeper look suggests a more troubling narrative.

Blockchain analytics firm Bubblemaps has issued warnings regarding CATDOG’s market movements. Their research reveals that 140 connected wallets hold 40% of the coin’s supply, a classic red flag in the crypto sector. For instance, one wallet, g3ZJo5, initially sniped CATDOG’s supply, quickly distributing parts to 60 other wallets while retaining 17.7%.

“Influencers are going wild over CATDOG, but watch out,” Bubblemaps warned.

Read more: Crypto Scam Projects: How To Spot Fake Tokens

Further analysis shows another wallet, 4rFHx1, making a large purchase that boosted CATDOG’s price. This wallet then sold off 25% of its holdings after recouping its initial outlay, yet it still controls 18.7% of the total supply.

Additionally, the person behind wallet A6SdeT sold a fraction before a price spike, ceasing further sales to hold onto 2.4% of the total supply. All these wallets were notably funded from the crypto exchange OKX right before their CATDOG transactions, primarily focusing on sniping and selling, indicating potential manipulation.

Critics within the crypto community are vocal against the influencers endorsing CATDOG. Crypto Rug Muncher, known for exposing scams, highlighted that these influencers previously promoted other doomed coins like ANALOS, BALLZ, and HULVIN, which led to significant losses for investors.

Dethective, another X (Twitter) user, outlined how a network of influencers tweeted about CATDOG to over 2.6 million followers.

“A meticulously managed network of influencers, with a combined audience of 2.6 million followers, has tweeted about this scam token 103 times, creating an echo chamber,” Dethective said.

Read more: 7 Hot Meme Coins and Altcoins that are Trending in 2024

Renowned on-chain detective ZachXBT has also denounced CATDOG as a scam.

“You do not need me to make a post to understand something called CATDOG promoted by bot accounts is a scam,” ZachXBT said.

The surge in meme coin endorsements isn’t limited to crypto influencers; mainstream celebrities have also endorsed various tokens. Over 30 celebrities, including Andrew Tate and Iggy Azalea, have launched their tokens on the Solana blockchain. Despite their high profiles, these meme coins suffered an average decline of 94% in value, demonstrating the risky nature of such investments.

Andrew Tate’s token, DADDY, although the best performer, still dropped over 73%. This decline is symptomatic of the broader market downturn affecting all 30 celebrity-endorsed coins.

“The numbers don’t look good, but to be fair, this is true of all tokens. Web3 is a fickle beast, and even earnest attempts aren’t always met with success, but this doesn’t excuse the blatant pump and dumps,” crypto analyst Slorg said, offering a bleak outlook.