PeckShield analyzed BSC-based token smart contracts and found that at least 55 have malicious functionalities.
A recent investigation found more than five dozen suspicious-looking cryptocurrency projects operating on the blockchain Binance Smart Chain (BSC).
The security the term securities refers to a fungible and tradable financial instrument that carries a type of monetary value. firm Blockchain a distributed ledger system. A sequence of blocks, or units of digital information, stored consecutively in a public database. The basis for cryptocurrencies. , PeckShield The cybersecurity team warned on Thursday about 55 cryptocurrency projects that could be potential scams. Through its official Twitter account, the cybersecurity team reported that it had detected the projects and shared a list of the names of the projects. tokens suspects. PeckShield called these tokens as “ potential carpet pulling ” (rug pulls).
#Scam PeckShield has detected 50+ tokens with rug-potentials. The community may want to be aware before interacting:
· Admin can mint unlimited tokens
· Admin can restrict token selling
· Admin can blacklist any account an account is essentially a whose purpose is to track the financial activities of a specific asset/ @bsc_daily #BSC Here is the list: https://t.co/6mBp2HX6Hm pic.twitter.com/fYJAMAPs7H— PeckShieldAlert (@PeckShieldAlert) January 13, 2022
It should be noted that the term “ carpet pulling ” refers to a type of scam a scheme that is designed to dupe people out of cash or crypto. in the crypto space that ends with the developers of a project running off with investors’ funds. These types of scams, which may look like legitimate projects at first glance, are common on decentralized decentralization refers to the property of a system in which nodes or actors work in concert in a distributed fashion to achieve a common goal. finance platforms (DeFi), including decentralized exchanges (DEX).
55 potential “rug-pullers” at BSC
After a process of blockchain analysis, PeckShield found fifty-five smart contracts from tokens over the BSC network a network refers to all nodes in the operation of a blockchain at any given moment in time. with malicious functions. Smart contracts are at an early stage and are executed by anonymous anonymity is when something is not known or named. teams.
According to the report, Many of those smart contracts were configured in such a way that users can buy the tokens, but not sell them. This trapping mechanism causes that in many cases the tokens The price of the currency currency is a medium of exchange that defines value. in question rises rapidly as more investors buy the currency before realizing that they can’t liquidate their profits. The creators of the project then take the opportunity to make off with the money, carrying out the “crypto-currency”. carpet pulling “.
PeckShield revealed that other malicious features of the analyzed smart contracts, in addition to blocking holders from selling their tokens include the ability for administrators to create tokens and blacklisting accounts.
The firm has decided to warn the community “ sooner rather than later “after previously informing the Binance Smart Chain on the situation. A spokesman for PeckShield he toldCryptoBriefingwhile talking about the common problems among the suspect projects.
The authority of each token owner is too large and most of these tokens have too few sellers. Also, when interacting with [the DEX] PancakeSwap, the sale may be restricted.
PeckShield warns about ‘TRUMP’ token
The good news is that these projects don’t seem to be capturing the attention of a large number of investors, at least for the time being. As noted byCryptoBriefing54 out of 55 tokens detected have no active users and no locked value. The only project showing activity is ‘TRUMP’, which has a liquidity how easily a cryptocurrency can be bought and sold without impacting the overall market price. of around USD $29,500 in PancakeSwap .
That project, whose name seems to be inspired by former U.S. President Donald Trump, registers 271 user addresses and more than 650 transactions, according to data from BSCScan .
PeckShield warned about the token a digital unit designed with utility in mind, providing access and use of a larger crypto economic system. TRUMP in one tweet separate. The firm described the project as of ” high risk “ because it allows the creator to coin a coin can refer to a cryptocurrency that can operate independently or to a single unit of such cryptocurrency. tokens and advised the community to stay away from this currency.
#SCAM PeckShield has detected that $TRUMP ( TRUMP COIN) is a high-risk token! The owner has the privilege of unlimited mint. Stay *AWAY* from it! https://t.co/gqcdLcrB6E
— PeckShieldAlert (@PeckShieldAlert) January 9, 2022
It should be noted that in BSCScan Some users have already described the project as a scam and reported that it does not allow its holders to sell ‘TRUMP’ tokens. In this regard, one user pointed out that when trying to sell his coins he got an error message saying: “I can’t sell TRUMP tokens. Gas a term used on the Ethereum platform that refers to a unit of measuring the computational effort of conducting transactions or smart contracts, or launch DApps in the Ethereum network. It is the “fuel” of the Ethereum network. *see Gas Limit and Gas Price. rates cannot be estimated “regardless of the number you enter.
Crypto Scams Use Successful Brand Names
Carpet-pulling has been a recurring phenomenon in the crypto space, which increased aggressively over the last year.
A form of Chainalysis published in December revealed that the cryptocurrency cryptocurrencies are digital currencies that use cryptographic technologies to secure their operation. investors lost USD $2.8 billion to “rug-pulling” during 2021 . The figure accounted for 37% of the total funds accumulated by crypto scams last year, compared to 1% for 2020.
Among the characteristics of this type of fraudulent projects is that their scammers often seek to exploit a trending topic. For example, a high-profile case of a scam of this type was that of the cryptocurrency inspired by the acclaimed Netflix series ” The Squid Game “ . Based on BSC, the token -called ‘SQUID’- became very popular and skyrocketed in price before the developers abandoned the project leaving investors with millions of dollars in losses.
If we look closely at the project list listed by PeckShield We’ll see that some tokens also take advantage of popular brands or themes. “ Amazon “, “ FIFA “, “ NETFLIX ” y “ GitHub gitHub is one of the most popular code hosting platforms, allowing developers to collaborate on various projects. “are some of the names behind the potential scams.
- Opportunity or Deception: Tokens Inspired by “The Squid Game” Invade Cryptospace
- DeFi a movement encouraging alternatives to traditional, centralized forms of financial services. Iron Finance token plummets to USD $0 after massive sale: team denies fraud
- Crypto Eats: the elaborate scam of a food delivery that stole half a million dollars and disappeared
Sources:CryptoBriefing , CoinDesk , archive
Article versioned by Hannah Estefania Perez / DiarioBitcoin
Image from Unsplash edited in Canva
