PeckShield has issued a warning about 55 seemingly suspicious altcoin projects on Binance Smart Chain (BSC). The security firm warned that the teams behind the listed tokens could issue unlimited tokens, blacklist accounts and restrict the sale of users. For details cryptocoin.com keep reading.
PeckShield identifies suspicious BSC altcoin projects
The ‘rug pull’ has become a common occurrence at BSC in recent months. Security firm PeckShield has released a list of 50 potential scam projects in BSC.
PeckShield has identified more than 50 tokens with ‘Rug Pull’ potential. The community may want to be aware of the following before interacting: Admin can issue unlimited tokens; Admin can restrict token sale; Admin can blacklist any account.
After analyzing smart contracts for 55 early-stage tokens run by anonymous teams, PeckShield identified malicious functions that allow administrators to issue unlimited tokens, blacklist accounts and prevent holders from selling their tokens. Therefore, he concluded that the projects could perform a so-called ‘Rug Pull’ on their investors. Rug Pull is a popular term used to describe crypto scams where teams abandon projects or sell tokens on exchanges and investors disappear with their funds.
PeckShield listed the altcoin projects it spotted in a tweet on Thursday. The firm emphasized that smart contracts for tokens are designed in such a way that users can buy but not sell their assets, creating a ‘honey pot’ scenario. Tokens using a honey pot mechanism typically gain in value as more investors buy, before they realize they cannot liquidate their positions. The token creator can then pull the carpet and run away with the funds. Several scam projects have adopted a honeypot strategy in recent weeks to steal investors’ funds.
The good news: 54 out of 55 projects have no active users or locked values
PeckShield said it decided to alert the community sooner after a discussion with the team at BSC. While discussing how the listed tokens share common issues, PeckShield said:
The authority of each project owner is huge and many of these tokens have very few sellers. Also, sales may be restricted when interacting with PancakeSwap.
The good news is that 54 of the 55 identified altcoin projects have no active users or value locked into them. A token using the TRUMP stock symbol has some on-chain activity on PancakeSwap and approximately $29,500 in liquidity. The TRUMP token has around 271 holders and recorded $144,860 in trading volume over the past week. PeckShield warned BSC users against TRUMP transactions in a separate tweet. The post described it as a “high risk token” as it allows the project owner to print unlimited tokens.
Carpet pulls have been a recurring issue for BSC users in recent months. In addition to the Squid Game, there were several other scams that launched on the network in 2021, causing users to lose millions of dollars worth of funds. Among the biggest attacks are TurtleDex and MetaDAO, which stole $2.4 million and $3.2 million from their users, respectively.
The trend continued in 2022. Security firm RugDoc reported Wednesday that multiple BSC tokens have solid users after launching Initial DEX Offerings on the network. While BSC has hosted many malicious crypto teams, it is not the only network that has seen a huge wave of contention. As the crypto space has grown, Ethereum has become a hub for similar events. Recently, an anonymous team called EtherWrapped lured Ethereum users with a fake New Year’s Eve airdrop, which then pulled the carpet and fled with 30 ETH.
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