Coinbase Blockchain Network Falls Victim
Coinbase’s new layer 2 blockchain Base is swarming with scam tokens due to network vulnerabilities, with over 500 deployed from mid-July to August 9, when Base mainnet went live.
According to Solidus Labs, a New York-based company that tracks fraudulent cryptocurrency transactions, 300 tokens, including BASEPEPE and Baby Yoda, permitted their founders to print an endless supply of coins, which affected their market value. These fake coins, of which 60 won’t even allow merchants to resale them, were targeted towards base users who were unfamiliar with this aspect of the blockchain. In the meantime, some of these tokens contained 70 smart contracts with hidden transaction cost modifiers.
According to estimates, trading on platforms that support Base helped the scam tokens raise $3.7 million. Additionally, scammers made $2 million from $2.7 million in purchases, $700,000 in sales, and $300,000 in wash sales.
(With inputs from Shikha Singh)
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