“The projects below have been deemed untrustworthy and have a high level of risk“. This is the title of the “Red Alarm” section of the DappBay app, which launched in mid-July on the Binance BNB Chain blockchain. As of this writing, more than 70 suspicious projects have been identified. A mix of crypto spin-offs akin to Dogecoin and Binance and others dedicated to pandas, cyborgs and koalas made the list of untrustworthy and high-risk projects.
The growth of the cryptocurrency ecosystem is associated with fraudulent and malicious projects (scam, phishing). …). To help users distinguish between good and bad projects within decentralized finance (DeFi), DappBay focuses on decentralized applications (Dapp). A Dapp is typically built around smart contracts that are based on blockchain technology (mainly on Ethereum at present).
Extremely high levels of risk
If DappDay finds good projects, it will alert users to the dangers that are associated with specific projects by identifying them in real time.
“As a decentralized blockchain, we recognize the challenges ahead, but we are confident that as a group we can defeat the efforts of criminals,” BNB Chain emphasized in the blog post published on Monday.
Currently, BNB Chain has over 1,300 active Dapps and boasts over 3.3 billion transactions per day that originate from 163 separate addresses. It is with this in mind that she decided to create an application that scans projects deemed questionable by users.
» BNB Chain launches DappBay platform with Red Alarm https://t.co/FMNLCbChew
— CZ 🔶 Binance (@cz_binance) July 14, 2022
The app detects a fraudulent project based on two factors: whether the project (or smart contract) differs from the project founders’ announcements or presents an opportunity for users to have their money stolen.
“Most importantly, Red Alarm’s functionality will help users stay one step ahead of fraudsters. The system gives real-time warnings of potential risks associated with projects, allowing investors in the community to make informed investment decisions,” Gwendolyn Regina, chief investment officer at BNB Chain, told Cointelegraph.
Well-known cryptocurrency clones.
In July, the application was able to scan more than 3,300 projects. At the time of writing, she discovered more than 70 suspicious projects. In the list of projects identified, there are many clones of well-known cryptocurrencies such as BabyLuna in reference to the Luna cryptocurrency which fell in mid-May, or BabyDogeGas in reference to Dogecoin.
Each project’s app explains why it’s a fraudulent smart contract, and links to its social media and websites. For example, the project “BabyLuna“, which is a token”same” generating a return, risks losing its funds depending on the application. On Twitter, the project has more than… 16,000 users.
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