Fake tokens are a growing problem on the decentralized exchange and liquidity pool Uniswap – due to the protocol’s open listing policy.
Within some days warnings being issued about scam tokens targeting four of the foremost buzz-worthy decentralized finance [DeFi] projects including Curve Finance, 1inchExchange, Tornado.Cash, along with dYdX.
With any token ready to be listed on the platform’s menu just by making a GitHub request, the platform’s users are increasingly calling for more stringent vetting to be implemented.
Listing Of Fake Tokens
While recently on 7th July, Decentralized derivatives project Opium warned its users about a fake token called Opium and trading under the ticker OPM had been listed on Uniswap despite the project not having a native token.
A day earlier Tornado.Cash also added that scammers were selling a fraudulent ‘TC’ token claiming some legal links to the original project. Curve Finance and 1inch.Exchange revealed a list of fake coins impersonating their yet-to-be-released native tokens on 4th & 5th July respectively.
A similar scam token impersonating Balancer Labs’ then-forthcoming BAL was also identified last month.
Uniswap Volume Spike
Since its ‘V2’ overhaul in May, Uniswap has emerged as a cornerstone of the nascent DeFi ecosystem, with data published by Dune Analytics revealing that Uniswap comprises DeFi’s top pool by total users with 92,000.
V2 also preceded a dramatic spike in Uniswap volume, with trade activity on the platform exceeding over $20 Mln on 2nd July – roughly after 6 weeks Uniswap’s volume broke over $2 Mln for the primary time.