2022 Rug Pull Report: Insights on Crypto Scam Tokens

Surge in Crypto Scam Tokens

Solidus Labs' 2022 Rug Pull report highlights a significant increase in crypto scam activities. Since September 2020, nearly two million investors have fallen victim to these scams. In 2022 alone, 117,629 scam tokens were recorded, marking a 41% increase from the previous year.

Daily Development of Scam Tokens

On average, 350 scam tokens were created daily in 2022, defrauding countless investors. Despite the staggering numbers, this figure is still less than the 1.8 million affected by the failures of major platforms like FTX, Celsius, and Voyager Digital.

Impact on Blockchain Networks

The BNB Chain experienced the highest rate of fraudulent activities, with 12% of its BEP-20 tokens identified as scams. Ethereum followed with 8% of its ERC-20 tokens being fraudulent. These networks are crucial targets due to their widespread use and popularity.

Notorious Scams and Financial Losses

The report identifies the $3.3 million Squid Game [SQUID] token scam as the largest honeypot scam. Such scams use smart contracts that prevent token resale, trapping investors. Additionally, since September 2020, Ether [ETH] scams have resulted in losses amounting to billions, showcasing the severe financial implications.

Conclusion

The 2022 Rug Pull report sheds light on the escalating issue of crypto scams, emphasizing the need for enhanced vigilance and risk monitoring. With the number of scams on the rise, investors must exercise caution and remain informed to protect their assets in the volatile crypto market.