Analysts have revealed a list of potentially dubious projects on Binance Smart Chain.
Cybersecurity experts from PeckShield analyzed a large number of projects on the Binance Smart Chain (BSC) blockchain. As a result, they identified more than 50 projects that are likely to be scams. The full list is available in a Google doc.
These projects’ smart contracts contain malicious features that allow them to restrict users from selling tokens, block their accounts, and mint unlimited tokens. However, the project’s creators remain anonymous.
The most common fraud schemes are “rug-pulling” and “honeypot.” The developers create a stir around the projects, take advantage of the fear of missing out (FOMO) of inexperienced investors, and when a token reaches a certain value, they withdraw all user funds from the project. Squid Game’s SQUID token attracted the most attention among scam projects in 2021, rising to $2.860 in a few days and then collapsing to $0.003 in a couple of hours. The developers gained about $12 million.