There Were 350 New “Scam Tokens” Produced Every Day This Year: Solidus Labs

There Were 350 New Scam Tokens Produced Every Day This Year Solidus Labs

Investors and marketing companies are exhausted by the recent news from Solidus Labs. The blockchain risk monitoring firm Solidus Labs reveals that this year more than 350 scam currencies were created to trap millions of investors.

The firm also declared that reports are showing almost 117,620 scam tokens were placed from this year January to November. Scammers are producing fraudulent crypto tokens for cheating investors. At the same time, the rise of scam tokens is related to the growth of activity within the field of cryptocurrency.

Money matters always follow threats at all times. Especially, When it comes to cryptocurrency, this year was highly remarkable in its scam talks.

According To Solidus Labs,350 “Scam Tokens” Were Created Daily

Generally, many people need to be made aware of cryptocurrency. Cryptocurrency is a digital currency used for different purposes. We can use cryptocurrency through phones and other electronic gadgets which allow transactions.

There Were 350 New Scam Tokens Produced Every Day This Year Solidus Labs

There are different types of cryptocurrencies are available today. But bitcoin is the most known and widely used cryptocurrency. It is mainly used for avoiding transactional charges, investments and for quick transactions, etc.

This year saw a huge increase in crypto scams. Especially, the constant issues reported in scam tokens create disappointment among investors and stock marketing companies. The report says that Binance and Ethereum are the most used cryptocurrencies used for fraud.

These cryptos are the emerging blockchain in the stock marketing industry. Scammers are creating scam tokens for stealing billions of dollars. Around 350 fraudulent cryptocurrencies reached the market on the daily basis.

This year reported more scams when compared to the previous year. Investors are afraid of buying and exchanging their crypto tokens. It often affected the investors and companies for choosing crypto tokens for investment.

When analyzing the crypto scams in the last few years, the last two years marked the worst condition for entering scam tokens into the global crypto market. 

The crypto trade research organization said in the latest “Rug Pull report” that, the scam token is launching to the crypto market via promising projects. The scammers are trying to lure the early investors who are looking forward to their following to-the-moon’ tokens.

This year marked 41 percent of fraudulent scam tokens. The total number of scam tokens is really shocking. Around 83,400 scam cryptocurrencies entered the market. This made a negative mark on the whole trade market.

The rug pull reports analyze the cases of scam tokens over the last five years. The problem has been becoming a major epidemic throughout the world. The scam token developers are luring billions of dollars from retail investors.

Scam tokens are a significant part of rug pull scams. The scam developers will advertise a project and the investors are attracted by their early privileges. Once a good amount of investment is gathered, the project developers will leave the investors.

On the other hand, scammers use the honey pot technique to cheat investors. They provide fake tokens that resist re-selling or exchanging their tokens and thereby the investor comes to drop the project.

According to the report of Solidus Labs, around 98,400  honey pot rug pull scams are reported between September 2020- December this year.

Scammers have almost stolen around $3.3 million dollars before abandoning this project. The report shows when analyzing the cases regarding scam tokens, around two million people have become prey to these traps around the world.

More: Senator FTX Collapse Hearing: US Lawmakers Examine Crypto Industry 

Due to this increasing number of scams in the crypto sector, companies should have taken proper measures against duped investors and fraudulent crypto tokens. Crypto crimes are worsening year by year.

Every month, investors lose billions of dollars in the name of fake cryptos. Law enforcement agencies should consider the seriousness of the crypto firm and seek the details of suspicious transactions.

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