Rug pulls have become a recurring menace in the cryptocurrency space, leaving investors with significant losses while bad actors escape with ill-gotten gains. Despite their variations, most rug pulls share consistent patterns and red flags that, when identified early, can help investors avoid falling victim. Here, we break down the anatomy of a rug pull based on recurring patterns and key indicators observed in fraudulent tokens.
Read MoreIn the decentralized world of blockchain, bad actors are always finding new ways to exploit smart contracts and trap unsuspecting investors. One particularly devious tactic involves using smart contract functions to limit token swaps/withdrawals, effectively locking buyers into a token they can’t escape. Today, we’ll look at how this manipulation works through an example with the Web3 token on the Ethereum network, showcasing how withdrawal limits are set to favor the scammer while trapping other investors.
Read MoreIn the decentralized world of blockchain, token projects and DeFi platforms have flourished, offering opportunities for incredible innovation, but also for exploitation. One tool that has come under scrutiny for its use in scams and rug pulls is the Disperse app. At first glance, Disperse is a legitimate tool for simplifying token distribution. It allows users to send tokens to multiple addresses in a single transaction, making it incredibly useful for things like airdrops, bounty rewards, or liquidity incentives. However, bad actors have found ways to exploit this functionality to artificially inflate trading activity and deceive unsuspecting investors. In this article, we’ll explore how Disperse app is misused to create the illusion of organic trading volume, and how you can protect yourself from falling victim to this common scam.
Read MoreIn today’s crypto landscape, scams and rug pulls are unfortunately all too common. As more people enter the world of digital assets, the need for robust tools to help navigate this complex space has become increasingly important. ChainDefenders is a free tool built to answer this call, providing a reliable and easy way to assess the risk of tokens and avoid falling prey to bad actors. In this article, we’ll explore the basics of ChainDefenders, how it works, and why it’s an essential resource for anyone looking to make safer investments in the crypto space.
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