OneArt

Quick Take<ul><li>The scam token list has almost 195,000 tokens so far.</li><li>Scammers create rather sophisticated methods to deceive users. They may ask to go to a phishing website to “unlock” a reward, activate a malicious smart contract that will drain all funds from a wallet, or imitate famous tokens.</li><li>Don’t interact with malicious assets before you check the project. You can use the “hide” feature in your wallet.</li><li>To learn how to spot them, check out our tips.</li></ul>Have you ever received some random airdrop tokens? Remember that first thought “Wow, now I’ll cash in”? We hope you haven’t, as the best answer to the question “How to sell scam tokens?” is “In no way.”The crypto space attracts more users (<a href="https://oneart.digital/en/blog/23-incredible-crypto-nft-stats" rel="noopener noreferrer nofollow">320 million so far</a>) and also draws fraudsters, becoming a hotbed of scams. The US Federal Trade Commission (FTC) <a href="https://www.ftc.gov/news-events/data-visualizations/data-spotlight/2022/06/reports-show-scammers-cashing-crypto-craze#crypto1" rel="noopener noreferrer nofollow">reports</a> nearly one out of every four dollars is lost due to scams. How many scam tokens account for is anyone’s guess, but we assume they make up a significant part. Especially given that just <a href="https://www.bsc.news/post/airdrop-scams-minereum-mneb-and-velochain-velo-land-on-binance-smart-chain" rel="noopener noreferrer nofollow">two (!) scam airdrops</a> sent to millions of addresses could have caused millions of dollars of losses. As of November 8, <a href="https://tokensniffer.com/" rel="noopener noreferrer nofollow">Token Sniffer</a> has flagged nearly 195,000 tokens as known or potential scams/hacks.<h2 id="header-0">How can a token even be a scam?</h2>Usually, it all begins like this. Fraudsters send you some crypto you can’t refuse to accept as blockchain transactions aren’t reversible. And then, there are variants.1. You’re asked to pay to unlock your “reward”Airdrops are a popular way to reward early adopters, so unsuspecting users go to the website to “unlock” their tokens that are actually fake. They imitate big-name ones: have the same name but a different contract address. Check the real one on the project’s official site, <a href="https://www.coingecko.com/" rel="noopener noreferrer nofollow">CoinGecko</a>, or <a href="https://coinmarketcap.com/" rel="noopener noreferrer nofollow">Coinmarketcap</a>.The fee may be a fortune, but it seems reasonable, as the “gift” is worth, say, $1,000. The scammers may even add some liquidity to the pool to make their crypto asset look worthy. Further attempts to sell or swap it fail.2. You’re prompted to visit a phishing websiteThe phishing website asks for access to a crypto wallet. If you grant it, your funds are gone. It’s that simple.Or it may claim to allow you to swap malicious crypto assets for common ones and then call setApprovalForAll() function to steal your funds.❗️Never ever go to unknown websites and don’t connect your wallet to them.3. You activate a malicious smart contractWhen you try to swap or sell an asset, you activate a <a href="https://research.checkpoint.com/2022/scammers-are-creating-new-fraudulent-crypto-tokens-and-misconfiguring-smart-contracts-to-steal-funds/" rel="noopener noreferrer nofollow">malicious smart contract</a>. It may<ul><li>Transfer all your crypto to fraudsters</li><li>Include hidden buy or sell fees</li></ul>Here’re some examples from Check Point Research of <a href="https://research.checkpoint.com/2022/scammers-are-creating-new-fraudulent-crypto-tokens-and-misconfiguring-smart-contracts-to-steal-funds/" rel="noopener noreferrer nofollow">how the METAMOONMARS scam works</a>. Developers have set a small fee to pass the checks and then changed it to 99% to steal holders’ assets.<img src="https://academy-public.coinmarketcap.com/optimized-uploads/4995d57a6ca743619f1f245925446408.png" /><img src="https://academy-public.coinmarketcap.com/optimized-uploads/b7af199b378041bfbcf69ec12f6992d5.png" /><img src="https://academy-public.coinmarketcap.com/optimized-uploads/66fe5d6138f240a8b6d451528ea25d42.png" />(You can check the <a href="https://bscscan.com/address/0x8ed9c7e4d8dfe480584cc7ef45742ac302ba27d7#code" rel="noopener noreferrer nofollow">smart contract on BscScan</a>).Token Sniffer also <a href="https://tokensniffer.com/token/va2h4bqafs2euvml2zp35apsvx1vsbbgcqazsi881qisnp9b0xnju9npq2dq?r&#61;6153" rel="noopener noreferrer nofollow">points to</a>❗️Lack of liquidity❗️Creator wallet exceeding the token supply.<ul><li>Include mint functions</li></ul>For example, make it public which allows for calling it from outside anytime.<img src="https://academy-public.coinmarketcap.com/optimized-uploads/e9c3088d2c9e4646814ea958b41d019e.png" />Hackers can also use vulnerabilities in existing contracts <a href="https://ciphertrace.com/infinite-minting-exploit-nets-attacker-4-4m/" rel="noopener noreferrer nofollow">to mint an infinite amount of crypto</a>.<ul><li>Ban users from selling crypto</li></ul>For instance, the MINI BASKETBALL code developers have set the “_transfer” function so that only two addresses could sell tokens.<img src="https://academy-public.coinmarketcap.com/optimized-uploads/3793680170ad47aebe9802d0fe29ead0.png" /><h2 id="header-1">How to get rid of scam tokens?</h2><ul><li>Don’t try to sell/swap them before you check the project.</li><li>Use the ‘Hide’ option so as not to interact with them by mistake. For example, that’s how to find your hidden NFTs in the OneArt Wallet.</li><li>To remove scam tokens from wallet, you can send them to a “burn” address, e.g., 0x000000000000000000000000000000000000dEaD on Ethereum and BSC or 0x0000000000000000000000000000000000000000 for Polygon.</li></ul><img src="https://academy-public.coinmarketcap.com/optimized-uploads/4662029809b64868bfa11cfba304e699.png" /><h2 id="header-2">How to spot a scam</h2>To <a href="https://d.docs.live.net/767456bf78f07734/%D0%A0%D0%B0%D0%B1%D0%BE%D1%87%D0%B8%D0%B9%20%D1%81%D1%82%D0%BE%D0%BB/%E2%80%A2%09https:/art-wallet.medium.com/how-to-retrieve-your-hacked-crypto-wallet-760ab060ce49" rel="noopener noreferrer nofollow">secure yourself</a>, do your own research:<ol><li>Check a smart contract. You can use <a href="https://rugdoc.io/" rel="noopener noreferrer nofollow">RugDoc</a>, <a href="https://poocoin.app/" rel="noopener noreferrer nofollow">PooCoin</a>, <a href="https://tokensniffer.com/" rel="noopener noreferrer nofollow">Token Sniffer</a>, <a href="https://github.com/dappradar/tokens-blacklist" rel="noopener noreferrer nofollow">DappRadar tokens blacklist</a>, <a href="https://www.bscheck.eu/" rel="noopener noreferrer nofollow">BSC Check</a>, and other <a href="https://oneart.digital/en/blog/useful-nft-and-crypto-tools-digest" rel="noopener noreferrer nofollow">tools and services</a> featuring risk ratings.</li><li>Make sure the code is verified (for example, <a href="https://etherscan.io/address/0xd3c325848d7c6e29b574cb0789998b2ff901f17e#code" rel="noopener noreferrer nofollow">on Etherscan</a>).</li><li>Check the project’s whitepaper, investors, and partners.</li><li>Check the market cap and liquidity. The services mentioned above &#43; Coinmarketcap and CoinGecko will help you. If a token isn’t even mentioned on Coinmarketcap and CoinGecko, it’s highly likely a scam.</li><li>Pay attention to the <a href="https://oneart.digital/en/blog/here-comes-the-team-people-behind-crypto-projects-and-challenges-they-face" rel="noopener noreferrer nofollow">team behind the project</a>.</li><li>Make sure the project’s community and social media are live.</li></ol><img src="https://academy-public.coinmarketcap.com/optimized-uploads/03feee94e5dc45308942a360d5ec88f4.png" /><h2 id="header-3">Closing thoughts</h2>Experienced crypto investors say you should invest as much as you can lose. OneArt will add you should also follow these tips to spot a scam and not have your wallet drained.Additionally, watch out for ads on social media, evoking the fear of missing out (FOMO). They often promise a “once-in-a-lifetime” chance to earn a fortune and — way more often — turn out to be a scam. <a href="https://www.ftc.gov/news-events/data-visualizations/data-spotlight/2022/06/reports-show-scammers-cashing-crypto-craze#crypto1" rel="noopener noreferrer nofollow">According to the FTC</a>, about ½ of those who got scammed lost their money due to a post or message on social media. Instagram is the most popular (32%), followed by Facebook (26%) and WhatsApp (9%).Also, beware of fake updates. They might look like actual security upgrades, e.g., like those Phantom users <a href="https://www.bleepingcomputer.com/news/security/fake-solana-phantom-security-updates-push-crypto-stealing-malware/" rel="noopener noreferrer nofollow">received</a> a few weeks ago. They got NFTs that claimed to be from the real Phantom team. The malicious file has stolen users’ passwords, cookies, and browser history.<h3 id="follow-official-oneart-channels-to-find-the-latest-info-and-updates">Follow official OneArt channels to find the latest info and updates:</h3><ul><li><a href="https://twitter.com/art_wallet" rel="noopener noreferrer nofollow">Twitter</a></li><li><a href="https://t.me/art_wallet" rel="noopener noreferrer nofollow">Telegram Group</a></li><li><a href="https://t.me/artwallet_official" rel="noopener noreferrer nofollow">Telegram Announcements</a></li><li><a href="https://coinmarketcap.com/community/profile/OneArt" rel="noopener noreferrer nofollow">CoinMarketCap Community</a></li><li><a href="https://www.linkedin.com/company/oneart/" rel="noopener noreferrer nofollow">LinkedIn</a></li></ul>

Got Scam Tokens in Wallet? Here’re Dos and Don’ts

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OneArt

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