Token scams are a growing problem in the Uniswap decentralized crypto-currency exchange and liquidity pool, due to the protocol’s open listing policy.
In recent days, warnings about scams have been issued to four of the most interesting decentralized finance Bitcoin Champion projects, including Curve Finance, 1inchExchange, Tornado.Cash and dYdX.
User numbers are up, but only five DeFi projects account for 94% of blocked funds
Because any token can appear in the platform’s drop-down menu by simply making a request to GitHub, platform users are increasingly asking for the introduction of more rigorous research.
The open-list policy would be the reason for the scams
The Opium decentralized derivatives project appeared on Twitter on July 7 to warn users that a scam token called Opium that was marketed under the OPM ticker had been included in Uniswap even though the project did not have a native token.
The same day the Defiprime Twitter account warned that the ‚DYDX‘ token was associated with the DeFi dYdX protocol even though the latter does not have a token, along with a bogus ‚Uniswap Community Token‘.
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A day earlier Tornado.Cash reported that the scammers were selling a fraudulent „TC“ token claiming to be affiliated with the project. Curve Finance and 1inch.Exchange reported fake coins posing as their native tokens yet to be released on July 5th and 4th respectively.
A similar scam token posing as Balancer Labs‘ then-BAL was also identified last month.
Uniswap attracts cash
Since its ‚V2‘ review in May, Uniswap has emerged as a foundation of the nascent DeFi ecosystem, with data published by Dune Analytics indicating that Uniswap constitutes the largest DeFi pool by total user count at 92,000.
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V2 also preceded a dramatic increase in Uniswap volume, with trading activity on the platform topping $20 million on July 2, approximately six weeks after Uniswap volume topped $2 million for the first time.