350 new ‘scam tokens’ were created every day this year: Solidus Labs

0

[ad_1]

More than 350 fraudulent cryptocurrency tokens were created per day this year, defrauding millions of investors, according to blockchain risk monitoring firm Solidus Labs.

From the start of the year to Dec. 1, 117,629 “scam tokens” were deployed according to Solidus’ 2022 “Rug Pull Report.” That’s a 41% increase from the nearly 83,400 scam tokens Solidus detected in 2021.

It marks the largest year on record for fraudulent tokens since the firm began monitoring in Sep. 2020.

The report cited the BNB Chain as harboring the greatest number of scam tokens, claiming 12% of all BEP-20 tokens are scams.

The Ethereum network was second with a purported 8% of ERC-20 tokens alleged to be fraudulent.

Solidus claims 2022 is the biggest year on record for fraudulent crypto-tokens. Image: Solidus Labs

A rug pull is a type of crypto exit scam where an individual or team creates a token and pumps up its price before extracting all the value from the project, abandoning it as the token price plummets to zero.

Almost 2 million investors have lost money to these scams since Sep. 2020, a greater amount than the estimated 1.8 million combined creditors affected by the bankruptcies of crypto exchanges and lending platforms FTX, Celsius, and Voyager.

FTX, Celsius, BlockFi and Voyager bankruptcies are estimated to affect over 2.3 million users combined. Image: Solidus Labs

The most popular type of scam token was a “honeypot”, which is a token smart contract that doesn’t allow buyers to resell.

Solidus said the most prolific “honeypot” successfully executed in 2022 was the $3.3 million Squid Game (SQUID) token scam which grew 45,000% in a few days as investors bought the hype but were unable to sell, ending with the anonymous founders apparently running off with investor funds.

Centralized exchanges (CEXs) are also affected by rug pulls as many behind these malicious tokens use them to fund their fraudulent project and cash out the ill-gotten gains.

Solidus claims around $11 billion worth of Ether (ETH) pilfered from scam tokens flowed through 153 CEXs since Sep. 2020 with the majority of the exchanges being overseen by United States regulators.

Related: 5 key takeaways from Huobi 2022 crypto industry report

Nearly $4 billion dollars flowed to U.S. CEXs in the analyzed time frame which was nearly double that of the second most exposed CEX jurisdiction: The Bahamas.

[ad_2]

Source link

Leave A Reply

Your email address will not be published.

bitcoin
Bitcoin (BTC) $ 80,226.00
ethereum
Ethereum (ETH) $ 2,330.25
tether
Tether (USDT) $ 0.998780
bnb
BNB (BNB) $ 743.73
xrp
XRP (XRP) $ 1.32
usd-coin
USDC (USDC) $ 0.999434
solana
Solana (SOL) $ 100.45
tron
TRON (TRX) $ 0.327660
staked-ether
Lido Staked Ether (STETH) $ 2,265.05
figure-heloc
Figure Heloc (FIGR_HELOC) $ 1.04
zcash
Zcash (ZEC) $ 1,279.65
hyperliquid
Hyperliquid (HYPE) $ 78.92
dogecoin
Dogecoin (DOGE) $ 0.077782
monero
Monero (XMR) $ 587.26
usds
USDS (USDS) $ 0.999782
whitebit
WhiteBIT Coin (WBT) $ 77.06
wrapped-steth
Wrapped stETH (WSTETH) $ 2,779.67
chainlink
Chainlink (LINK) $ 11.37
leo-token
LEO Token (LEO) $ 9.01
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 76,243.00
cardano
Cardano (ADA) $ 0.204453
binance-bridged-usdt-bnb-smart-chain
Binance Bridged USDT (BNB Smart Chain) (BSC-USD) $ 0.998762
near
NEAR Protocol (NEAR) $ 4.52
wrapped-beacon-eth
Wrapped Beacon ETH (WBETH) $ 2,466.93
stellar
Stellar (XLM) $ 0.168039
bitcoin-cash
Bitcoin Cash (BCH) $ 286.25
rain
Rain (RAIN) $ 0.007199
wrapped-eeth
Wrapped eETH (WEETH) $ 2,465.31
ethena-usde
Ethena USDe (USDE) $ 0.999152
susds
sUSDS (SUSDS) $ 1.08
dai
Dai (DAI) $ 0.999757
uniswap
Uniswap (UNI) $ 7.11
litecoin
Litecoin (LTC) $ 56.40
canton-network
Canton (CC) $ 0.098871
coinbase-wrapped-btc
Coinbase Wrapped BTC (CBBTC) $ 76,366.00
avalanche-2
Avalanche (AVAX) $ 8.80
usd1-wlfi
USD1 (USD1) $ 0.998841
blockchain-usd
Blockchain USD (USDB) $ 0.932324
sui
Sui (SUI) $ 0.918185
weth
WETH (WETH) $ 2,268.37
the-open-network
Gram (prev. Toncoin) (GRAM) $ 1.21
hedera-hashgraph
Hedera (HBAR) $ 0.075743
tether-gold
Tether Gold (XAUT) $ 4,050.65
usdt0
USDT0 (USDT0) $ 0.998824
global-dollar
Global Dollar (USDG) $ 0.999720
paypal-usd
PayPal USD (PYUSD) $ 0.999844
bittensor
Bittensor (TAO) $ 249.38
quant-network
Quant (QNT) $ 197.92
shiba-inu
Shiba Inu (SHIB) $ 0.000005
ethena
Ethena (ENA) $ 0.207336
Shares