Peckshield warns of 50 projects threatened by rug pull on BSC

Peckshield warns of 50 projects threatened by rug pull on BSC.

As exciting and innovative as the DeFi space is, some bad guys are creating worthless tokens that wreak havoc and hamper adoption.

In a recent report, well-known blockchain security firm Peckshield is investigating more than 50 suspicious projects on Binance Smart Chain (BSC).

Possible rug pull on BSC

Rug pull is a regular occurrence in the crypto space in 2021, where the developers of a DeFi project unexpectedly gave up and drained users’ funds. BSC is one of the hardest hit DeFi platforms, with a number of projects pulling the carpet since its inception.

In the latest report, Peckshield revealed that it has discovered more than 50 projects with “carpet-pulling potential” on BSC and warned the community that the admins behind the project in question can mint unlimited tokens, prevent users from selling tokens and even open accounts to the to blacklist.

The risky projects that Peckshield mentions on the list are run by the anonymous team and are all classified as “average”.

https://twitter.com/PeckShieldAlert/status/1481536511627567109?ref_src=twsrc%5Etfw” target=”_blank” rel=”nofollow noopener

“PeckShield has discovered more than 50 tokens at risk of being dragged over the rug. The community may want to know the following before interacting:
· The admin can mint unlimited tokens
· The admin can limit the token sale
Admin can blacklist any account.

Carpet pulling in 2021

In 2021, carpet pulling will become one of the most used scams. according to a report by Chainalysis, these carpet pulls raked in $2.8 billion in crypto from victims, accounting for 37% of total scam revenue in 2021, compared to just 1% in 2020.

Amount of carpet pulling in 2020 compared to 2021 | Source: chain analysis

There are two main reasons why rug pulling is so popular.

• One was the initial hype surrounding the DeFi space and the FOMO that followed.
• The technical skills required to develop and list tokens on exchanges, many of which were achieved without a thorough analysis of the smart contract’s code by either party.

But that trend may not continue into 2022.

Recently, Chainalysis to explain that growth in legitimate crypto usage is outpacing crime cases.

In fact, the company notes that the share of illicit activity in crypto trading volume has never been lower, “criminals are increasingly becoming a small part of the crypto ecosystem.”

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