Unfortunately, the crypto sector sees the proliferation of scam token projects every day, booming in 2017 with the proliferation of ICOs offering incredible solutions with minimal investment.
But now criminals have gone further, as has also been reported by the DeFi Prime platform.
Be aware of scam #DeFi tokens on Uniswap
— defiprime (@defiprime) July 5, 2020
A new form of scam
Criminals are now exploiting the decentralization of the platforms to sell scam tokens under the same name as real projects that may not yet have released their own tokens.
In doing so, these hackers leverage the fact that many governance tokens are open to all users and it is enough to interact with some protocols to retrieve them.
In practice, the technique that many criminals are starting to use is that of exploiting decentralized platforms to list their scam tokens.
In particular, recently there have been newly created tokens by 1inch, Curve, BZRX, Balancer, TornadoCash, dYdX and Opium, hence all tokens that are related to the DeFi sector and platforms known to most people.
What to do before buying a token
The choice probably fell on these tokens partly because many of them are planning to release one and consequently hackers rely on the fact that less experienced users may not know that the token hasn’t been created yet.
In these cases, verifying whether the token is legal or not is not so easy as it is necessary to know the address of the token’s contract and check whether it is the original one or not.
In order not to be involved in these scams it is recommended to always check the official sources and actually ask whether or not there is a token of the project and also find the address of the token.