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Blockchain

More Than 500 Scam Tokens Appeared On Base Chain, Users Beware: Report

August 17, 2023 - Around 2 mins mins to read

Key Points:

  • Solidus Labs said that between mid-July and August, developers deployed more than 500 scam tokens on layer 2 Base.
  • The scammers made around $2 million.
  • Recently, the protocols deployed on Coinbase’s Layer 2 have been repeatedly attacked, causing users to lose trust.
According to Bloomberg News, blockchain risk monitoring firm Solidus Labs claims that developers deployed more than 500 scam tokens from mid-July to August on Coinbase’s layer 2 blockchain BASE, for example, such as BASEPEPE (BPEPE) and Baby Yoda (Expert).
More than 500 Scam Tokens Appeared On Base Chain, Users Beware: Report

About 300 of these tokens allow their creators to mint infinitely, and another 60 prevent buyers from reselling them on exchanges. Scam tokens generated around $3.7 million in trading volume on Base DEXs, and the scammers made around $2 million in profits. Solidus also said that in addition to the hundreds of scam coins, other cryptocurrencies that are “scamly inflated and traded” are also included in the layer 2 platform.

Prior to this, this layer 2 also got into a lot of controversy when the BALD meme token creator inflated the token on Twitter and raised its price on LeetSwap, earning over $5.2 million. Then rug -pull causes the token to fall into the abyss.

Shortly after, its largest DEX, LeetSwap, halted trading to investigate an exploit that cost liquidity providers 340 ETH, which cost $630,000 on July 31.

On August 15, its other DEX, RocketSwap, also reported experiencing an attack. According to security firm PeckShield, the perpetrators earned 471 ETH ($870,000). The RocketSwap team later claimed to have determined the hack was caused by a series of flaws, including the DEX’s use of offline signatures during the launchpad implementation and the decision to store the private key on the server.

In addition, PeckShield noticed that the RocketSwap hacker transferred stolen assets from the Base blockchain to Ethereum and quickly created a memecoin called LoveRCKT.

PeckShield reported in a Twitter post on August 16 that SwirlLend transferred approximately $289,500 in crypto from Base. It then transferred 94 ETH from Linea, connecting the cryptocurrency to Ethereum. It then created a new token and laundered 253.2 ETH through the Tornado Cash crypto mixer. The project’s social networking sites have also been closed.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Blockchain, Scam Alert

More Than 500 Scam Tokens Appeared On Base Chain, Users Beware: Report

Key Points:

  • Solidus Labs said that between mid-July and August, developers deployed more than 500 scam tokens on layer 2 Base.
  • The scammers made around $2 million.
  • Recently, the protocols deployed on Coinbase’s Layer 2 have been repeatedly attacked, causing users to lose trust.
According to Bloomberg News, blockchain risk monitoring firm Solidus Labs claims that developers deployed more than 500 scam tokens from mid-July to August on Coinbase’s layer 2 blockchain BASE, for example, such as BASEPEPE (BPEPE) and Baby Yoda (Expert).
More than 500 Scam Tokens Appeared On Base Chain, Users Beware: Report

About 300 of these tokens allow their creators to mint infinitely, and another 60 prevent buyers from reselling them on exchanges. Scam tokens generated around $3.7 million in trading volume on Base DEXs, and the scammers made around $2 million in profits. Solidus also said that in addition to the hundreds of scam coins, other cryptocurrencies that are “scamly inflated and traded” are also included in the layer 2 platform.

Prior to this, this layer 2 also got into a lot of controversy when the BALD meme token creator inflated the token on Twitter and raised its price on LeetSwap, earning over $5.2 million. Then rug -pull causes the token to fall into the abyss.

Shortly after, its largest DEX, LeetSwap, halted trading to investigate an exploit that cost liquidity providers 340 ETH, which cost $630,000 on July 31.

On August 15, its other DEX, RocketSwap, also reported experiencing an attack. According to security firm PeckShield, the perpetrators earned 471 ETH ($870,000). The RocketSwap team later claimed to have determined the hack was caused by a series of flaws, including the DEX’s use of offline signatures during the launchpad implementation and the decision to store the private key on the server.

In addition, PeckShield noticed that the RocketSwap hacker transferred stolen assets from the Base blockchain to Ethereum and quickly created a memecoin called LoveRCKT.

PeckShield reported in a Twitter post on August 16 that SwirlLend transferred approximately $289,500 in crypto from Base. It then transferred 94 ETH from Linea, connecting the cryptocurrency to Ethereum. It then created a new token and laundered 253.2 ETH through the Tornado Cash crypto mixer. The project’s social networking sites have also been closed.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.