Web3 protocol DeChat reimburses users after honeypot token launch

DeChat users buying the project’s token on Pancakeswap were directed to a malicious address, but the team resolved the matter after ZachXBT flagged concerns on X.

SocialFi protocol DeChat has reimbursed users who sent funds to a honeypot address attached to the project’s native token, according to the team’s official X account. On-chain sleuth ZachXBT alerted the protocol and its supporters to an issue with the Pancakeswap contact address provided.

A crypto honeypot is an address or protocol to lure unsuspecting victims into parting with their assets. Scammers and bad actors typically use the scheme to steal funds through phishing campaigns and rug pulls.

DeChat committed to refunding affected users who interacted with the Pancakeswap address between 10 AM and 11 AM UTC. The protocol had reportedly completed all reimbursements for the token, which launched on Feb. 26 at press time. DeChat also acknowledged ZachXBT for his swift intervention.

Please DM us your address; our team would like to extend our thanks with a special reward. Thank you to our community for your support and trust as we resolved this matter.

DeChat to ZachXBT, community

DeChat developers say the platform is an open web3 communications venue for powering on-chain user interactions on Ethereum and Binance Smart Chain. The protocol has a chat-to-earn feature to reward participants and a staking program to offer yield for long-term supporters.

There is also support for BRC20 inscriptions, a standard initially developed in the first half of 2023 for Bitcoin’s blockchain to introduce defi on crypto’s largest decentralized network. BRC20 tokens have become a billion-dollar market since, and inscriptions have proliferated many altcoin blockchains like Avalanche and Solana.

A wave of inscriptions recently halted Avalanche’s primary network, dubbed C-chain, for over four hours before developers fixed the issue.