A crypto surveillance firm says black hat developers have placed hundreds of malicious tokens on Coinbase’s newly launched Ethereum (ETH) layer-2 chain.

According to Solidus Labs, bad actors deployed more than 500 scam tokens on Base days after the blockchain debuted for developers on July 13th and before the network became available for the public on August 9th.

“Roughly 300 of these scam tokens’ smart contracts contained hidden functions enabling their creators to mint an unlimited number of new coins; another 70 contracts contained obfuscated transaction fee modifiers; and more than 60 contained honeypots, blocking buyers from reselling their tokens altogether.”

Solidus Labs says the scam tokens generated about $3.7 million worth of trading volume on Base’s decentralized exchanges (DEXs). The rogue assets drew in $2.7 million worth of buys, $700,000 worth of sales and $300,000 worth of wash sales that the fraudsters executed themselves.

The perpetrators managed to earn $2 million in profits from the scheme by removing all liquidity from their DEX pairs after a significant number of users invested and by minting and selling massive quantities of new coins.

Malicious actors also placed soft rug pull crypto assets on the network ahead of the launch. In this type of social engineering attack, developers hype up the value of the crypto asset and then withdraw their funds, leaving existing investors with overwhelming sell pressure. 

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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

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The post Bad Actors Deployed Over 500 Scam Crypto Assets on Coinbase’s Ethereum Layer-2 Prior to Launch: Surveillance Firm appeared first on The Daily Hodl.

A crypto surveillance firm says black hat developers have placed hundreds of malicious tokens on Coinbase’s newly launched Ethereum (ETH) layer-2 chain.

According to Solidus Labs, bad actors deployed more than 500 scam tokens on Base days after the blockchain debuted for developers on July 13th and before the network became available for the public on August 9th.

“Roughly 300 of these scam tokens’ smart contracts contained hidden functions enabling their creators to mint an unlimited number of new coins; another 70 contracts contained obfuscated transaction fee modifiers; and more than 60 contained honeypots, blocking buyers from reselling their tokens altogether.”

Solidus Labs says the scam tokens generated about $3.7 million worth of trading volume on Base’s decentralized exchanges (DEXs). The rogue assets drew in $2.7 million worth of buys, $700,000 worth of sales and $300,000 worth of wash sales that the fraudsters executed themselves.

The perpetrators managed to earn $2 million in profits from the scheme by removing all liquidity from their DEX pairs after a significant number of users invested and by minting and selling massive quantities of new coins.

Malicious actors also placed soft rug pull crypto assets on the network ahead of the launch. In this type of social engineering attack, developers hype up the value of the crypto asset and then withdraw their funds, leaving existing investors with overwhelming sell pressure. 

Check Latest News Headlines

 

Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

Generated Image: Midjourney

The post Bad Actors Deployed Over 500 Scam Crypto Assets on Coinbase’s Ethereum Layer-2 Prior to Launch: Surveillance Firm appeared first on The Daily Hodl.