When you see the word ‘smart contract’ in a whitepaper, you should read it as a ‘one-way contract’ favoring the other party.
— Timothy Benson
BERLIN, GERMANY, September 14, 2022 /EINPresswire.com/ — According to CheckPoint Research (https://research.checkpoint.com/2022/scammers-are-creating-new-fraudulent-crypto-tokens-and-misconfiguring-smart-contracts-to-steal-funds/), many scammers manipulate tokens’ smart contracts — contracts that exist and run automatically as code on the blockchain. Because they are stored on a blockchain, they are public, meaning that anyone can see the terms of the contract and know exactly how it’s executed.
Generally, it is misunderstood as a fool-proof contract because it is executed automatically. People don’t realize that the automatic execution of contracts at the click of a button can be disastrous. This is especially true if one has put their life savings on the other side of the contract and the counterparty is anonymous. According to recent scam victims, this scenario is what FTCyber.com has found to be the latest wave.
The risks of scam contracts
When investing in cryptocurrency, there’s always a risk that anyone could end up being scammed. This is especially true regarding smart contracts, self-executing contracts that live on the blockchain. Because of their nature, it’s nearly impossible to alter the smart contract agreement once they’ve been created. This immutability has been touted as the next great feature for investors. The fact remains that they make a ripe environment for scammers with little upside.
“When you see the word ‘smart contract’ in a whitepaper, you should read it as a ‘one-way contract’ favoring the other party. You can also infer that it includes an automatic hand into the contents…
