Cryptocurrency

Over 95% of tokens launched on Uniswap are scams

Zegex

According to recent reports, about 97% of crypto projects started on Uniswap are lag pulls. study The title is “Do Not Rug On Me: Zero Dimension Fraud Detection”.

Research conducted by Bruno Mazorra, Victor Adan, and Vanesa Daza suggests that Uniswap’s simplicity and lack of regulation make it easy for fraudsters to list worthless tokens on the platform.

“If a token loses all liquidity or its price falls to zero and these levels are not restored, it is more likely that the decline was malicious,” the report said.

Analysis revealed that various techniques were used to trick new investors into buying malicious tokens. As you can see below, researchers manually classified malicious and non-malicious tokens to find malicious tokens traded on UniswapV2.

Classification of Uniswap ploys
Source: Classification of malicious Uniswap ploys

“While this taxonomy provides a clear overview of Uniswap’s tokens, it depends on unobservable variables such as intent and profit,” reads the report.

The study examined 27,588 tokens, of which 631 were considered benign and 26,957 were considered malicious. A total of 24,870 malicious attackers are quick ragpulls and 2,087 are not his LP burns.

Researchers found that this dataset was sufficient to label all 26,957 tokens as malicious. This means that 97.7% of the tokens under investigation are malicious.

A study recently shared on Twitter by crypto influencer drnick received widespread criticism as many questioned the basis of the study.some twitter users claimed The study lacks substantive grounds for making such a submission.

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