Scammers and Fake Coins Continue to Plague Uniswap


August 19, 2020 10:19 am

Scammers and Fake Coins Continue to Plague Uniswap
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The growing popularity of Uniswap is continuing to attract scammers and fake coins continue to plague decentralized exchange Uniswap, with top crypto projects associated with upcoming token sales reporting impersonators trading on the platform.

Upcoming decentralized finance (DeFi) lending protocol Teller Finance tweeted on Aug 19, that a fake Teller token and Uniswap pool had been designed.

“Teller Labs has not made any official announcements on any potential, planned, or upcoming token launches.”

The highly awaited NEAR Protocol token sale also invited impersonation scams in the lead-up to its commencement last week, tweeting that any NEAR tokens not officially sanctioned:

“The only place for official word of NEAR tokens is Any NEAR currently for sale at locations not mentioned there are not officially sanctioned by the NEAR Foundation and participating puts you at severe risk.”

It has identified that two tokens impersonating NEAR, that have traded on Uniswap over recent weeks. Acala Network has also encountered scammers ahead of its token sale, with the project’s website currently hosting a banner saying that “there is no official public sale of Acala tokens” and asking community members to report impersonation scams to the team. It has not identified any fraudulent Acala tokens currently trading on Uniswap however.

Scam tokens on Uniswap

Uniswap does not maintain any rules or criteria for listing, unlike any other centralized platform, indicating that anybody can list an ERC-20 token on the exchange. Crypto market data aggregator CoinMarketCap currently lists Uniswap as hosting more than 400 active pairings, in addition to more than 300 markets that the platform has not yet confirmed.

Vitalik Buterin, founder of Ethereum shared an article this week, about the pervasiveness of scam tokens on Uniswap and advocated the demonstration of “decentralized reputation systems” to mitigate the risk:

Dispute resolution protocol Kleros believes its curated registry of tokens can solve the problem of scam tokens with its registry including tokens that are not linked with malicious addresses, and offering badges that symbolise coins have undergone user-vetting.

Kleros has also launched a Uniswap front-end that restricts users from trading tokens that the project has not tested.

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