50 Fraud Tokens On Binance Smart Chain Identified By PeckShield.

50 Fraud Tokens On Binance Smart Chain Identified By PeckShield.

2022-01-17 | Daniel Smith

50 Fraud Tokens On Binance Smart Chain Identified By PeckShield.

PeckShield examined thousands of smart contracts for premature companies and discovered dangerous functionalities that enable team leaders to issue a limitless quantity of tokens, block accounts, and restrict consumers from selling their assets while remaining anonymous.

As per a tweet on Jan. 13, the corporation cautioned of a prospective "rug-pull" by project programmers on this profile. A "rug pull" occurs when developers in the cryptocurrency space steal investor cash and depart a project.

PeckShield stated that the smart contracts for the tokens in dispute were created with evident malevolent purpose, letting investors acquire the tokens but preventing them from selling them when the asset price rises.

This tactic, known as a "honeypot," is common among fraudsters who play on retail FOMO (fear of missing out). When the token price hits a level deemed acceptable by the project founders, they depart the fraud, abandoning investors with useless 'bags.'

SQUID, a token named after the popular Netflix program of the identical title, is a typical instance of a "honeypot." The token climbed over 28,000 percent in a matter of days prior to actually plummeting to zero as the project's creators yanked the rug out from under them, grabbing $12 million.

Tokens with the PeckShield red flag, including BabySquid, bnbRocket, AstroCoin, as well as others. Almost all of the tokens are worthless due to a dearth of customers, however, one coin with the ticker symbol TRUMP sticks out.

TRUMP, which has a gross availability of 100 million, has seen a trading volume of about $145,000 during the last seven days. Presently, 271 people own the coin, which has liquidity of slightly below $30,000 on Pancakeswap.

In a subsequent tweet, PeckShield advised investors to "stay away" from TRUMP, calling the coin "high-risk." In past months, there has been a rush of "rug-pulls" on the Binance Smart Chain. The most recent incident concerns the loss of approximately $2.6 million in cryptocurrency via numerous initial dex offers (IDO), as revealed on Jan. 12 by security company Rugdoc.

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