$2.2 billion: This is the total amount stolen from DeFi protocols in 2021, according to Chainalysis. This observation shows how much crime is wreaking havoc in the world of cryptocurrencies. Investors are being stripped of their money while some blockchains are losing credibility.
Faced with this reality, the company PeckShield has made it its mission to track down potentially fraudulent tokens. By looking into Binance’s Smart Chain, this security company discovered nearly 50 dubious tokens. His investigation also lifted the veil on malicious practices that are currently taking place.
A disturbing discovery for investors
Last Thursday, PeckShields Inc, the blockchain security company made an important statement. She discovered more than fifty potentially fraudulent tokens on the Binance Smart Chain (BSC). This result is the result of careful investigation.
For its investigation, PeckShied analyzed dozens of smart contracts. Some belonged to early-stage cryptocurrency projects. The company found malicious functions there, which notably allow team leaders to monetize an unlimited number of tokens. They then blacklist them to prevent users from selling their tokens, all incognito.
On the other hand, PeckShield warned of the threat of a possible ” rug-pull » from project developers. We are talking about ” rug-pullwhen the developers of the cryptocurrency universe run away with funds from investors, abandoning the project.
The intention to harm is clearly reflected in these contracts
The smart contracts for dubious tokens have clearly been developed with malicious intent. Indeed, investors could buy the tokens, but could not sell them. Nothing could be more detrimental, especially when the asset increases in value.
This strategy is called a “honeypot”. It is very common among cybercriminals. They take advantage of individuals’ fear of missing an opportunity. When the price of the token reaches a level considered sufficient in the eyes of the project managers, they withdraw from the scam. Investors, who thought they had bags full of gold coins, find themselves with bags stuffed with stones, worthless.
One of the classic examples of a “honeypot” is the Squid, a token created after the well-known Netflix series of the same name,Squid Games. the token soared over 28,000% in just a few days. Then, it suddenly plunged to zero after the initiators of the project swept it all away, stealing 12 million dollars!
In sum, Binance’s Smart Chain has been the scene of a wave of criminal actions, such as the “rug-pull“. Nearly 50 tokens fromsmart contractslisted on this channel are considered potentially dangerous. Every investor should therefore keep an eye out.
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Luc Jose Adjinacou
Far from having dampened my enthusiasm, an unsuccessful investment in 2017 on a few cryptos only increased my enthusiasm. I therefore resolved to study and understand the blockchain and its many uses and to relay with my pen information relating to this ecosystem.