Security firm Peckshield published a list of 50 potentially suspicious binance Smart Chain (BSC) projects.
Peckshield created a list of 50 BSC-based projects that he believes may be scams. According to the company, these projects’ administrators may issue tokens in infinite quantities, limit their sales, or even denylist any accounts.
In 2021, rug pulle was undoubtedly one of the most popular scams. According to the Chainalysis report, they accounted for 37% of all fraud revenue last year. In 2020, it was only 1%.
Why are rug pulles so common? Basically, there are two reasons. The first is the hype on DeFi and the resulting FOMO. Another is the technical skills required to develop tokens and put them on exchanges. Many of them have not passed, for example, appropriate audits of the smart contract code.
However, this trend may slow down in 2022. According to Chainalysis, the number of such crimes may decrease due to the evolving ability of law enforcement agencies to combat them. The company recently stated that the increase in the use of cryptocurrencies “far outweighs the increase in use for criminal purposes”.
The team also mentioned that one of the positive changes is the growing “ability of law enforcement agencies to confiscate illegally obtained cryptocurrencies”. In 2021 alone, the IRS confiscated digital assets worth more than $3.5 billion.