An application launched by the giant Binance identifies in real time cryptocurrency projects considered malicious.
“The following projects have been deemed untrustworthy and carry extremely high levels of risk.” Here is what we can read at the top of the section “Red Alarmof the DappBay application, launched in mid-July by Binance’s BNB Chain blockchain. At the time of writing, more than 70 dubious projects have been identified.
The development of the cryptocurrency ecosystem is also accompanied by fraudulent and malicious projects (scam, phishing, etc.). To help users sort out the good and bad projects within decentralized finance (DeFi), DappBay is interested in decentralized applications (Dapp for “decentralized application”). A Dapp is usually based on smart contracts that run on a blockchain (mainly on Ethereum today).
Extremely high levels of risk
While DappDay identifies good projects, it also seeks to alert users to the risks associated with certain projects by identifying them in real time.
“As a decentralized chain, we are aware of the challenges ahead, but we are confident that as a community we can overcome the efforts of bad actors,” BNB Chain pointed out in a post on Monday.
To date, the BNB Chain has more than 1300 active Dapps, claims more than 3.3 billion transactions per day that come from 163 unique addresses. It is in this context that it wanted to launch an application which makes it possible to scan projects considered doubtful for users.
The application makes it possible to identify a malicious project according to two criteria: both if the project (or smart contract) works differently to the announcements of the founders of the project or if the project presents a risk for the user to be steal his funds.
“Most importantly, Red Alarm’s feature helps users stay one step ahead of scammers, the system provides real-time warning of potential risks associated with projects, enabling the community to make investment decisions. enlightened,” Gwendolyn Regina, Chief Investment Officer at BNB Chain, told Cointelegraph.
Replicas of well-known cryptocurrencies
During the month of July, the application scanned over 3300 projects. At the time of writing, the app has identified more than 70 dubious projects. Among the projects identified, we will note many replicas of known cryptocurrencies such as BabyLuna in reference to the Luna cryptocurrency which collapsed in mid-May or BabyDogeGas in reference to Dogecoin.
For each project, the application explains the reasons that suggest that it is a malicious smart contract, while putting a link to their social networks or their website. For example, the “BabyLuna” project, a yield-generating “meme” token, has risks of having its funds stolen depending on the application. On Twitter, this project is followed by more than… 16,000 subscribers.