The new frontier of token scams
The new frontier of token scams
Security

The new frontier of token scams

By Alfredo de Candia - 8 Jul 2020

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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.

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.

One of these is the Uniswap exchange, since it is extremely simple to create an Ethereum (ETH) token and list it independently on this DEX. 

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.

 

Alfredo de Candia
Alfredo de Candia

Android developer for over 8 years with a dozen of developed apps, Alfredo at age 21 has climbed Mount Fuji following the saying: "He who climbs Mount Fuji once in his life is a wise man, who climbs him twice is a Crazy". Among his app we find a Japanese database, a spam and virus database, the most complete database on Anime and Manga series birthdays and a shitcoin database. Sunday Miner, Alfredo has a passion for crypto and is a fan of EOS.

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