Fake Tokens on Uniswap Are Trying to Cash In on DeFi Hype
Uniswap appears to be plagued with scam tokens claiming affiliation with popular DeFi projects.
Scam tokens are a growing problem on the decentralized exchange and liquidity pool Uniswap â€” owing to the protocolâ€™s open listing policy.
In recent days warnings have been issued about scam tokens targeting four of the most buzz-worthy decentralized finance (DeFi) projects including Curve Finance, 1inchExchange, Tornado.Cash, and dYdX.
With any token able to be listed on the platformâ€™s drop-down menu simply by making a GitHub request, the platformâ€™s users are increasingly calling for more stringent vetting to be introduced.Â
Open listing policy leads to scam tokens
Decentralized derivatives project Opium took to Twitter on July 7 to warn users that a scam token called Opium and trading under the ticker OPM had been listed on Uniswap despite the project not having a native token.
A day earlier Tornado.Cash had reported that scammers were selling a fraudulent â€˜TCâ€™ token claiming affiliation to the project. Curve Finance and 1inch.Exchange reported fake coins impersonating their yet-to-be-released native tokens on July 5 and July 4 respectively.Â Â
A similar scam token impersonating Balancer Labsâ€™ then-forthcoming BAL was also identified last month.
Uniswap attracts liquidity
Since its â€˜V2â€™ overhaul in May, Uniswap has emerged as a cornerstone of the nascent DeFi ecosystem, with data published by Dune Analytics indicating that Uniswap comprises DeFiâ€™s top pool by total users with 92,000.
V2 also preceded a dramatic spike in Uniswap volume, with trade activity on the platform exceeding $20 million on July 2 â€” roughly six weeks after Uniswapâ€™s volume broke above $2 million for the first time.
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