crypto-economy.com
The BNB Chain blockchain network, built by the Binance cryptocurrency exchange, recently updated its weekly “red alarm list” to include 191 high-risk projects and decentralized apps (DApps) that are now available on the network.
The recently published list displays high-risk dApps on the BNB Chain that may entail frauds or rug pulls and are attributed considerable risk evaluations, according to DappBay:
“Often, these risky dApps’ contracts don’t align with their advertised functions, putting users at risk of losing funds.”
Your security is a top priority 🔒
Make sure to review our weekly Red Alarm list to familiarize yourself with suspicious actors on our network.
This week's list includes Pinaki, Elvantis, Leech Protocol, Streamflow, OnlyBrain, XOP Project and more.https://t.co/pp0QSGpbqW
— BNB Chain (@BNBCHAIN) April 17, 2023
The 191 new projects on BNB Chain that were recently added to the list are either suspected of releasing fraudulent tokens, have exorbitant or opaque tax costs, or are regarded as fraudulent because of the way their websites, Twitter accounts, or other social media handles do not operate.
It should be noted, however, that BNB Chain’s proactive warning is not financial advice and does not reflect the risk level of the underlying DApp projects. The objective is to assist people in conducting research before making investing decisions.
BNB Chain Warns Against Scam dApps in New Red Alarm dApp Risk-List
Among the blockchain projects on the list for April 14th, 2023, are Pinaki, Elvantis, Leech Protocol, Streamflow, OnlyBrain, BNB Daily Finance, XOP Project, TradeTogether, The Cake Monster, and others.
While many of the tokens are tagged as being fake, some of their token contracts contain logical or programming backdoors that are able to drain users’ funds. This indicates that the contract owner or deployer may perform rug pulls by calling privileged functions, dumping their tokens, or migrating the contract at any time.
A project named “Shorter Finance” could also be found on the “Red Alarm” list. The report maintains that the project’s funds originated from the crypto-mixing service provider Tornado Cash.
Surprisingly, the list also includes some well-known and notable cryptocurrency projects, like Bitcoin, BNB, Binance USD, Cardano, Pax Dollar, and the recently launched Arbitrum (ARB) tokens. This demonstrates that some con artists are creating fraudulent replicas of these well-known coins to entice investors into buying them while being unable to sell them afterward.
However, this once again sounds a critical alarm to crypto investors to be cautious and verify the authenticity of the coins before investing in them. It is advisable to only invest in reputable and established cryptocurrency projects to avoid falling victim to scams like this.
It is important to verify the authenticity of any dApps, whether they are built on the BNB Chain or not, before using them.