The Crypto world is full of potential but also dangers. As a trader, investor or holder, you must be aware of your online security. Robi is here to inform you against fraudulent tokens, and to provide tools that can help to deal with the scam.
What is HTML0? Scam token isit?
A fraud token is a cryptocurrency created and released with the intention of the theft of assets. A hundred tokens are produced every day, and some could be a scam. There is a significant possibility of being misled.
Biswap is an DEX which means that it is open and has the possibility of launching liquidity for any token that is listed within the system. Therefore, you must be wary of scams and stay away from any cryptocurrency that appears suspicious.
What’s the Danger? Stay Away from Suspicious Tokens!
There numerous ways in which fake tokens utilized. Let’s review a few them so that you are aware and prepared.
The rug pulling is one typical method of DeFi that involves abruptly taking liquidity out of the investment.
Scammers create new tokens and then launch an liquidity pool, typically at the DEX. The majority of scam tokens will be placed in an liquidity pool, paired with other tokens, like ETH or BNB or be traded as an IDO. The creators of tokens control a large portion of the supply of tokens once the token is launched. Once the token is able to attract enough investors, fraudsters sell it all to make a gain and leaving the other owners with a void of tokens.
You can tell from the name the scheme described by the attractiveness of investors. However, it is important to be aware that all glitters is not gold.
As you’ve probably guessed, cryptocurrency prices can be volatile and price volatility is common. However, it is more alarming is when a brand new cryptocurrency increases only when there is no sign of selling it. This could be a sign the honeypot fraud may be taking place.
The secret is that the smart contract of the token lets only one wallet sell them. This wallet is controlled by fraudsters. This means that you cannot use this wallet to trade, and in the end, you’ll be unable to recover your investment.
We have an attractive and appealing bait. Who wouldn’t want the opportunity to win free tokens? However, if I claim they’re a ploy to deceive.
Airdrops from scams can make people believe they’ve received tokens that are that are worth thousands. However they aren’t able to be traded on exchanges since there is no liquidity. This scam is designed to draw users to a fraudulent site to link your account to your wallet and give access to a fraudulent smart contract. After that, scammers are able to take money directly from your account.
How to spot Scam Tokens Use tools and tips!
It is crucial to realize that you are responsible for your investments. Therefore, you should consider all potential risks and scrutinize all possible factors before placing your money into the token.
Checking the steps in this article can help you differentiate fake tokens from genuine ones, but without any guarantee of 100%.
Check the Token’s Price History
If a cryptocurrency is brand fresh and has seen an enormous price increase within a few hours or even days it could be an indication of danger. It doesn’t suggest that the cryptocurrency has an enduring promise but it could suggest that the currency will soon drop or even be worthless as a result of the scam.
Analyze Token Distribution
Check out the recorded transactions for the cryptocurrency. If any owner holds more than 50% of the total supply in circulation and especially when it’s a brand new token, it may be a fraud. Cybercriminals typically hold a large amount of fake tokens in order to sell back a huge portion of their supply to generate a large profit.
Make a White Paper Research
Whitepapers could be one of the indicators of trust. Whitepapers for certain projects are very detailed and give investors a complete overview of the goals, plans and strategies that are specific to the specific token. However, scam projects tend to ignore their whitepapers since they don’t want time reading it.
Use analysis tools of third-party companies
Here are some services which can help you identify the fake. We strongly recommend that you scan the token on numerous websites to increase the quality of the verification.
Biswap High — Level of Security | Trade Officially Listed Tokens!
Security is the top priority for Biswap. We strive to offer our customers the highest-quality security and ensure their money secure!
Biswap DEX is officially verified by CertiK — the world’s leading blockchain security firm which means that protected from hacks and other malfunctions.
Biswap team has thoroughly examined each token prior to its official listing in the system. This allows you to swap quickly and securely listed tokens for the lowest cost of 0.2 percent for the BNB chain, and earn up to 50% fee return.
Biswap regularly educate the community about
Analytical thinking and critical thinking are the most effective tools to detect fraudulent transactions. Be sure to conduct thorough research prior to making a decision to invest in the cryptocurrency. Biswap will try its best to offer you security and top-quality services.
What Is a Scam Token? A scam token is A cryptocurrency which is created with the sole intention of stealing funds from investors . They are usually built using a blockchain that already exists, for instance Ethereum because it's simpler for cybercriminals to take advantage of this, rather than creating an entirely new blockchain.