The Crypto world is full of opportunities and dangers as well. As an investor, trader or holder, you should take care of your cyber security. Robi is here to warn you about scam tokens and provide you with tools that will help you to handle the fraud.
What Scam token is?
A scam token is a cryptocurrency that is developed and launched for the purpose of stealing assets. About 100 tokens are created daily and some might be a trap. So there is a high risk of being deceived.
❗Biswap is a DEX which means openness and opportunity to launch liquidity to any token on the platform. So you should be aware of scams and avoid suspicious cryptocurrency.
What’s the Danger? | Stay Away from Suspicious Tokens!
There are many vehicles through which scam tokens can be used. Let’s overview a few of them to be aware and prepared.
Rug Pull
A rug pull is a common scheme on DeFi that entails unexpectedly removing liquidity from the project.
Scammers create a new token and launch a liquidity pool, usually on the DEX. Often scam tokens may be put into a liquidity pool paired with another token like ETH or BNB, or they may be sold in an IDO. Token creators maintain a significant share of the total supply once the token launches. And when a token has attracted enough investment, scammers sell everything, making a decent profit and leaving other holders with worthless tokens.
Honey Pot
As you can guess from the name, this scheme is characterized by attractiveness for investors. But you should remember that all that glitters is not gold.
As you know, cryptocurrencies are volatile, and price instability is a usual phenomenon. But more suspicious when a new token only goes up, and nobody seems to be selling it. It might be a signal that a honeypot scam is going on.
The trick is that the token’s smart contract allows only one wallet to sell them. And this wallet is controlled by scammers. So you can’t trade this token, and eventually, you will lose your investments.
Fake Airdrop
Once again, we have a very attractive bait. Who refuses free tokens? But if I say they are malicious.
Scam airdrops make people think they have received tokens worth thousands of dollars. But, in fact, they can’t be traded on exchanges as there’s no liquidity. This scam aims to lure you to a shady website to connect your wallet and approve access to a malicious smart contract. After that, scammers can withdraw funds directly from your wallet.
How to identify Scam Tokens | Use Tips & Instruments!
It is important to understand that you take responsibility for your assets. For this reason, you should analyze all risks and check all possible aspects before investing in the token.
Following check steps will help you distinguish scam tokens from valuable ones without a 100% guarantee.
Check the Token’s Price History
If crypto is new and has experienced a huge price hike in a few hours or days, it might be a red flag. This fact does not mean that the crypto has a long-term promise, but it could indicate that the token will soon plummet or even become worthless under the scam scheme.
Analyze Token Distribution
Take a look at the distributed ledger or transaction history of the token. If any holder keeps more than half of the circulating supply, especially when it’s a new token, it might be a scam. Cybercriminals often hold a huge portion of scam tokens to sell back a massive share of the supply and make a big profit.
Make a White Paper Research
Whitepaper documents might be one of the trust indicators. Some projects’ white papers are incredibly detailed and give the investors a thorough idea of the plans, goals, and strategy according to the particular token. In contrast, scam projects would rather sidestep their token’s whitepaper as they don’t want to waste time on this.
Use third-party analysis tools
Here are a few services that help to identify the scam. We highly recommend scanning the token through multiple websites to increase the accuracy of the verification.
⚙️Honeypot detector: https://honeypot.is/
⚙️Free Binance Smart Chain Token Analyzer: https://bscheck.eu/
⚙️Token Sniffer: https://tokensniffer.com/
⚙️GoPlus: https://gopluslabs.io/
⚙️Risk Scanner: dappbay.bnbchain.org/risk-scanner
Biswap High — Level of Security | Trade Officially Listed Tokens!
Safety is the highest priority for Biswap. That is why we tend to provide its users with the best-in-class security and keep their funds safe!
✅Biswap DEX is officially verified by CertiK — the leading blockchain security company, and therefore protected from hacks and malfunctions.
✅Biswap team deeply analyzed each token before official listing on the platform. So you can swap easily and safely officially listed tokens with the lowest fee of 0.2% on the BNB chain and get up to 50% Fee Return.
Click to trade: https://exchange.biswap.org/swap?
✅Biswap regularly educate the community about security: https://bit.ly/3fw8VKb
Closing Words
Critical thinking and analytical skills are the best tools to identify scams. Always do deep research before investing in the token. Biswap will do its best to provide you with safety and high-level services.
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