Rome Blockchain Labs (RBL) has released new research showing that many token pairs on decentralized exchanges (DEXs) may be fraudulent or duplicates. Using its data service, RBL Net, the team analyzed data on over 1,000,000 pairs on Uniswap (ETH) and PancakeSwap (BNB).
In light of the many marketplace crashes and burgeoning fear in the marketplace, due to scandals like FTX and Terra, RBL wanted to investigate how dangerous DeFi really is for the average person. While everyone knows they should Do Their Own Research, how critical is it to really understand the marketplace tikers and symbols prior to investing?
With between 40% and 59% of tokens having duplicate pairs on reputable networks, RBL believes users must be very vigilant when exploring investments. Read on to learn more about the specific findings.
Over 40% of DeFi token pairs may be fraudulent or duplicates, according to Rome Blockchain Labs
Rome Blockchain Labs (RBL) has released new research showing that many token pairs on decentralized exchanges (DEXs) may be fraudulent or duplicates. Using its data service, RBL Net, the team analyzed data on over 1,000,000 pairs on UniswapV2 and UniswapV3 on Ethereum and PancakeSwap on BNB Chain. The research found that of the 190,887 pairs created this year, 81,457 (42.7%) had the same token symbols as another pair as of August 2022. Now, in December of 2022, this has increased to 59.4% of 581 592 Token Pairs.
This phenomenon is likely due to bad actors creating fake tokens with the same ticker as legitimate ones in an attempt to capture assets from unsuspecting traders. However, the research notes that not all duplications are necessarily fraudulent, as legitimate tokens may use the same symbol as a completely different pair.
“Given our data capacity, we wanted to use this information to help prevent new traders from falling victim to scams like I almost did. This research is a reminder that it’s important to do your due diligence and be cautious when…
