Solidus Labs Research: 350 New ‘Scam Tokens’ Created Daily in 2022

Cointelegraph | Jesse Coghlan  | Dec 18, 2022

Number of crypto investors affected by scams collapses rugpulls - Solidus Labs Research:  350 New 'Scam Tokens' Created Daily in 2022More 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 that Solidus detected in 2021.
    • The report claims that BNB Chain harbors the greatest number of scam tokens, with 12% of all BEP-20 tokens being fraudulent.
    • The Ethereum network was second, with a purported 8% of ERC-20 tokens alleged to be scams.

See:  Trust Fallacy: 75% of Payment Fraud in Crypto is Carried Out by KYC-verified Accounts

  • The most popular type of scam token was a “honeypot," which is a token smart contract that doesn’t allow buyers to resell.
    • The most prolific “honeypot” in 2022 was the $3.3 million Squid Game (SQUID) token scam which grew 45,000% in a few days before anonymous founders apparently ran 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.

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