Base Blockchain Attracts Scam Tokens
Coinbase introduced “Base” to create decentralized features for users. However, the blockchain attracted over 500 fraudulent tokens in a short period. Scam token creators exploit hype, promise, and price manipulation, generating around $2 million in profits, according to Solidus Labs, a New York-based crypto market integrity platform.
Scam tokens attracted roughly $3.7 million worth of trading volume on Base-based decentralised exchanges, according to a recent report by Solidus. The con artists accomplished $2.7 million in buys, $700,000 in sales, and $300,000 in wash sales throughout the process.
All users have access to Base, but this feature also makes security flaws vulnerable, which scammers take advantage of. Users were advised against meme coins and decentralised exchanges on the layer-2 solution by Solidus Labs analysts because, should an exploit occur, funds lost to rug pulls or tokens exclusive to these DEXes cannot be recovered or withdrew.
(With inputs from Shikha Singh)
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