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BNB Chain Leads the Pack in Crypto Scams and Rug Pulls

Published 10/28/2022, 10:18 AM
Updated 10/28/2022, 10:30 AM
BNB Chain Leads the Pack in Crypto Scams and Rug Pulls
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  • The BNB Chain is the leader in Crypto Scams and Rug Pulls.
  • On the network, roughly 12% of the BEP-20 tokens were linked to fraud.
  • Binance representative says that they are not responsible for the scams and rugpulls.

With over 12% of all BEP-20 tokens, the standard token on the BNB chain, connected to fraud, BNB Chain topped the chart for the most number of scams carried on a chain, according to Solidus Labs, a crypto risk monitoring organization. A crypto trader shared a post with a list of names of chain used for scamming.

Notably, 8% of all ERC-20 tokens in the Ethereum ecosystem were associated with fraud, placing it second. With only 1.2% scam tokens and smart contracts, Polygon came in third.

As per Solidus, 188,525 smart contract scams had been discovered across 12 blockchains as of October 10. Additionally it reports that 15 frauds are launched across several networks every hour.

Moreover researches show there has been 188,000 rug pulls launched on Ethereum and other blockchains. Subsequently, while commenting about the statistics of rugpull, Solidus Vice President of Regulatory Affairs, Kathy Kraninger stated:

While some of the big rug pulls and scams make the news, like the famous Squid Games Token that’s estimated to have cost users around $3 million in lost funds, the full picture stemming from our data shows the vast majority of these scams go unnoticed

In early October, BNB Chain was exploited with a $100 million. However, since Binance had close relationships with most of the chain’s validators, it was able to freeze some of the stolen funds by pushing out a software update. Interestingly, a company representative said that Binance is not responsible for “rug pulls” or fraud that occurs on-chain back in 2021.

The post BNB Chain Leads the Pack in Crypto Scams and Rug Pulls appeared first on Coin Edition.

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