Coinbase has launched “Base,” a platform aimed at developers who build decentralized features for its users. While Base is designed to enhance the exchange’s functionality and encourage customer engagement, it has also attracted over 500 fraudulent Tokens in a short period. Scammers have reportedly made around $2 million in profits through these fraudulent tokens, using tactics such as liquidity withdrawal and generating new coins for sale.
A recent report by crypto Market integrity platform Solidus Labs found that scam tokens on Base-based decentralized exchanges generated around $3.7 million in Trading volume. The scammers managed to execute $2.7 million worth of buys, $700,000 worth of sales, and $300,000 worth of wash sales. They either swiftly withdrew liquidity from their DEX pairs after attracting a significant number of users or created a large number of new coins to sell, depleting the Ether reserves of the DEX pair.
In addition to the scam tokens, Solidus Labs also identified deceptive cryptocurrencies that were traded on Base. One such token, called BALD, experienced a surge in capital and users, causing its price to increase by 4,000,000% and attracting over $68 million from traders. The creator of BALD allegedly made over $5.2 million by promoting the token on social media and inflating its price on a Base-based decentralized exchange called LeetSwap.
Solidus Labs advised users to thoroughly research any decentralized application (dapp) before participating on Base or any other chain, just as they would on the open internet. While Base is accessible to all users, this accessibility also exposes vulnerabilities that scammers exploit. Users were cautioned against meme coins and decentralized exchanges on the layer-2 solution, as funds lost to rug pulls or exclusive DEX tokens cannot be recovered or withdrawn in case of an exploit.
Overall, the presence of fraudulent tokens and deceptive cryptocurrencies on Coinbase’s Base platform highlights the need for users to exercise caution and conduct due diligence when engaging with these decentralized features..
#Coinbases #Incubated #Base #Blockchain #Attracts #Scam #Tokens #Report
A recent report by crypto Market integrity platform Solidus Labs found that scam tokens on Base-based decentralized exchanges generated around $3.7 million in Trading volume. The scammers managed to execute $2.7 million worth of buys, $700,000 worth of sales, and $300,000 worth of wash sales. They either swiftly withdrew liquidity from their DEX pairs after attracting a significant number of users or created a large number of new coins to sell, depleting the Ether reserves of the DEX pair.
In addition to the scam tokens, Solidus Labs also identified deceptive cryptocurrencies that were traded on Base. One such token, called BALD, experienced a surge in capital and users, causing its price to increase by 4,000,000% and attracting over $68 million from traders. The creator of BALD allegedly made over $5.2 million by promoting the token on social media and inflating its price on a Base-based decentralized exchange called LeetSwap.
Solidus Labs advised users to thoroughly research any decentralized application (dapp) before participating on Base or any other chain, just as they would on the open internet. While Base is accessible to all users, this accessibility also exposes vulnerabilities that scammers exploit. Users were cautioned against meme coins and decentralized exchanges on the layer-2 solution, as funds lost to rug pulls or exclusive DEX tokens cannot be recovered or withdrawn in case of an exploit.
Overall, the presence of fraudulent tokens and deceptive cryptocurrencies on Coinbase’s Base platform highlights the need for users to exercise caution and conduct due diligence when engaging with these decentralized features..
#Coinbases #Incubated #Base #Blockchain #Attracts #Scam #Tokens #Report
