tue 16 August 2022 ▪ 13:00 ▪
min reading – per
The world of cryptos has never been immune from malicious acts such as scams, rug sweater or the hacks. This has prompted some heavyweights such as Binance to set up DappBay, a platform identifying dubious and high-risk projects. As the fishing has been good on the BNB Chain, CZ is issuing a red alert.
DappBay, if you don’t want to become a victim anymore
« Red alert! The following projects have been deemed untrustworthy and involve extremely high levels of risk. »
This is the first post you can see on the DappBay page, the platform recently launched by BNB Chain to report fraudulent projects.
In just one month of existence, DappBay was able to analyze 3,300 contracts and demystify about fifty dubious projects. Enough to help novices to be vigilant before embarking on the crypto adventure.
What would they have liked to have available such a device the victims of scam OneCoin type initiated by Ruja Ignatova!
Changpeng Zhao welcomed this beautiful catch.
« Our Red Alert platform has detected 50 projects as being scams or rug pulls. »
About 50 out of 3,300 scanned contracts have been classified as scam/rug pull on DappBay. That’s about 1.51%. To be able to separate the real ones from the fake ones, Binance has taken into account 2 very distinct criteria :
- the inconsistency between the performance data announced by the project initiators and the actual performance ;
- the existence of risks that can influence investors’ funds.
The launch of the tool Red Alarm had taken place in mid-July, on the initiative of Binance and DappBay. The aim is the analysis of contractual risks allowing the identification of high-risk projects. Moreover, this device is also conducive to the verification of the address of a contract by DApp users. Thanks to this approach, logical flaws and fraud risks will be easily detected.
And even more, DappBay allows the preselection and ranking of the best freshly launched projects of the DeFi or NFT type.
Gwendolyn Regina, chief investment officer at BNB Chain, provides details :
« Most importantly, the Red Alarm feature helps users stay one step ahead of scammers; the system warns in real time of potential risks associated with projects, which allows the community to make informed investment decisions. »
Basically, the Beacon Chain BNB community and enthusiasts will have at their fingertips an effective tool to better understand market trends thanks to the rankings of the most recent projects. And at the same time, they will be able to anticipate the dangers associated with any project.
Nevertheless, it must be recognized that DappBay does not only have a dark side. Indeed, there is a complete list of promising future projects.
What about the projects that fell into DappBay’s net?
50 projects have therefore entered this list. Is it worth considering? Definitely!
Basically, these are spin-offs (replicas or derivatives) of very famous projects like Dogecoin (like BabyDogeGas, Dogechain…– – Dogecoin having already warned against such projects – and Binance (BNB Miner, BNBMiner, BNBStake, etc.). Other innovations related to pandas, cyborg, koalas or dogs are also among the defendants.
« We tend to place them on the ‘Red Alarm’ list to effectively warn users to deviate from it or to participate with caution “, Regina had pointed out in an interview with Cointelegraph. As they say, “a wise man is worth two”, we hope that you will not be fooled by people with honeyed words in this vast crypto universe.
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The blockchain and crypto revolution is underway! And the day when the impacts will be felt on the most vulnerable economy in this world, against all hope, I will say that I had something to do with it