Key Takeaways:
- PSYOP token has caused investors to lose up 90% of their investments in some cases.
- Many community members have labeled the project as a scam.
NEW DELHI (CoinChapter.com) — Another meme token has officially transcended into the spam category, as early investors in the PSYOP blockchain project have ended up with losses to the tune of 90%.
In a May 19 tweet, blockchain analyst Lookonchain highlighted that users who invested in the pre-sale of the PSYOP token suffered heavy losses. The analyst cited the example of the top three pre-sale buyers of the project to highlight the losses.
Wallet address 0xac34 sent 29 ETH tokens to buy nearly 5.1 million PSYOP tokens. On May 19, the investment was worth less than 3 ETH, a loss of nearly 90%.
Another user, veg.eth, sent a total of 27 ETH for nearly 14 million PSYOP tokens, which quickly became worth nearly 3 ETH.
Furthermore, Lookonchain highlighted that even trading the PSYOP tokens was not profitable. For example, the analyst noted that another user suffered a loss of 0.02 ETH in trading the tokens, with a gas fee of 0.05 ETH.
Ben.eth’s reply to the losses was another PSYOP Airdrop. Although the prices recovered, wallet 0xac34 was still down 50% on its initial investment.
How PSYOP Token Came Into Being
Ben.eth capitalized on April’s meme coin frenzy by first promoting Pepe coin aggressively before launching the BEN token. Surprisingly, the crypto influencer handed over the project to Ben Armstrong, a crypto YouTuber known as Bitboy.
Afterward, Ben.eth launched the PSYOP token, likely as a means to leverage his popularity as a cue to drive token prices. The pseudonymous crypto influence managed to raise nearly $7 million in the presale of the token.
Ben.eth, an NFT collector-turned-memecoin shiller, aggressively promoted the project. However, the PSYOP token website is a single page containing Ben.eth’s proclamation of creating the token as a “favor to the community.“
Controversies Abound As Claim PSYOP Token Is A Scam
Meanwhile, Ben.eth also roped in other influencers to shill the PSYOP token airdrop and token, or so it seemed. The crypto influence name dropped influence Andrew Tate, aka Top G, claiming Tate gave a ‘shout-out‘ for the token.
The former kickboxer was not pleased. Tate replied to the tweet clarifying that he had nothing to do with the “trash project.“
Moreover, he advised users not to “buy this crap.”
On-chain investigator ZachXBT highlighted that Ben.eth quoted a tweet from a compromised account of DJ Steve Aoki. The stunt resulted in Ben.eth followers losing nearly $170,000. However, the crypto influencer accepted the blame and promised a refund to the victims of the tweet.
Mike Kanovitz, a partner at the law firm Loevy & Loevy, added fuel to speculation of the PSYOP token being a scam. Kanovitz’s firm threatened to file a class action lawsuit against Ben.eth if pre-sale participants didn’t get a refund.
The lawsuit would seek $21 million in damages. Users were aggravated when they received less-than-expected tokens in the airdrop. Ben.eth clarified that only 10% of the PSYOP tokens were allocated to the airdrop.
