Things don’t look good on Binance according to Solidus
BNB Scammy Tokens
The cryptocurrency space is no stranger to scams, with billions of dollars worth of digital assets being stolen each year. Now, it seems that smart contract scams are on the rise, with Solidus Labs detecting on average 15 new scams every hour.
The Web3 and cryptocurrency space has seen a significant proliferation of smart contract scams in recent months. The blockchain risk tracking firm Solidus Labs says it has detected on average 15 newly deployed scams every hour. During a scan of 12 major blockchains, including Ethereum, Polygon, and BNB a total of 188,525 smart contract scams have been detected. A staggering amount of scams had been detected in a two-week period between October 10 and October 27.
Most of these scams originate from Binance’s BNB Smart-Chain, with 12% of BEP-20 tokens exhibiting fraudulent characteristics. This makes BNB the chan with the most amount of scams. according to the company, there is a total estimated amount of $910 million in Ether. All of these scams have transactions on centralized and decentralized exchanges.These smart contract scams are often hard to spot, but they can be devastating for investors if they’re not careful. So, what can you do to protect yourself? Keep reading to find out.
Kathy Kraninger, Solidus’ vice president of regulatory affairs, is a former United States Consumer Financial Protection Bureau director. Mrs. Kraninger stated that a vast number of the scams go unnoticed and unreported. In speaking on these scams, Solidus stated that these tokens are hard-wired to steal funds from the wallets of investors. This means that these tokens can be considered just as abusive as “rug pulls. A “rug pull” is basically theft of investors’ funds leaving the investor with a useless token or asset. These kinds of contracts easily repeat, and scammers can use these automatically deployed contracts to complete thousands of low-value attacks. These attacks have been successful in tricking exchanges, regulators, and the proper authorities.
In recent months, there has been an explosion in the number of so-called “scam token smart contracts” created on the Binance Smart Chain (BSC). According to Solidus Labs, which tracks 12 leading blockchains, most of these scam-like tokens are indeed generated on Binance’s BNB chain.
Solidus Labs is just one company that is watching this trend. Other companies like PeckShield and SlowMist have also reported similar findings. This raises the question: why is Binance’s BSC chain so susceptible to these types of scams?
In the cryptocurrency world, investors need to be vigilant against scams in many different forms. One of the most prevalent forms of scams in the space are smart contract scams, which Solidus Labs says detects an average of 15 new ones every hour. Impersonating well-known cryptocurrencies often perpetrates these scams. The scams can be difficult to spot. Solidus Labs advises being on the lookout for any smart contracts that automatically deploy and easily repeat. Automatically deploying and easily repeating are the two characteristics that make them easy for scammers to launch.
Google has also come under fire for promoting crypto phishing sites. Binance boss Changpeng Zhao warned users to be careful when searching for information about cryptocurrencies on the internet giant’s search engine. Hacks are also on the rise in the cryptocurrency space, with Chainalysis director of research Kim Grauer saying that the value stolen in crypto hacks is on track to hit all-time highs in 2022. The majority of these hacks target decentralized finance (DeFi) protocols, so users need to be extra vigilant when using these platforms.
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