A disturbing trend on Instagram Reels is drawing global concern, as offensive, AI-generated memes are increasingly being used to promote cryptocurrency scams, according to a recent report by the Financial Times.
How shocking memes are being weaponised
The report highlights how grotesque and offensive characters — created using easily accessible AI tools — are deliberately designed to go viral. These memes often rely on racist and antisemitic tropes, with extreme and disturbing narratives meant to trigger outrage, comments and prolonged viewing.
Once the content gains traction, it is used to draw attention to so-called “memecoins”, cryptocurrencies whose value rises temporarily based on online popularity rather than real utility.
From memes to money traps
Unlike earlier memecoins that evolved from organic internet jokes, these newer coins are created first, followed by manufactured memes to promote them. Platforms such as pump.fun allow rapid coin creation and trading, after which promoters circulate provocative videos across social media and messaging groups to generate attention.
When prices spike, early promoters sell off their holdings — a practice known as “rug pulling” — leaving unsuspecting investors with losses.
Role of social media platforms
The report notes that platforms owned by Meta, including Instagram, have become fertile ground for this activity. Reduced moderation and algorithm-driven amplification mean that shocking content often spreads faster than responsible or factual material.
Even users unaware of cryptocurrency markets are exposed to disturbing visuals and language, as the content is pushed widely to maximise engagement.
Manufactured trends and cultural harm
Experts warn that this cycle — deregulated crypto platforms, powerful AI tools, and engagement-hungry social media algorithms — is eroding trust in online culture itself. Memes, once seen as grassroots expressions of humour or commentary, are increasingly engineered purely for profit and manipulation.
The report cautions that repeated exposure to violent and hateful imagery risks normalising such discourse, especially among younger audiences.
Call for stronger oversight
Analysts argue that without stronger regulation of cryptocurrency platforms, clearer accountability for AI misuse, and more responsible content moderation, the internet risks becoming a space dominated by artificial outrage and exploitation.
As the report concludes, reclaiming online spaces from those who deliberately poison them may be essential to preserving digital trust and social well-being.