ZeroSwap to Implement Security features Against Honeypot Scams
MASSIVE $3.2Mn. losses have been reported U/O Honeypot Scams by Certik
Recently, Solana memecoin ($EPEP), a honeypot scam, crossed the $13 billion market cap.
But what is this honeyspot scam all about?
Honeypot scams are type of malicious activities performed by scammers , where they create fake tokens or smart contracts. These fake tokens appear to be real ones to the users as they promise high returns.
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Now, let's say X sees a new memecoin that looks promising
⤵️Looking at the hype around social media and prices going high
⤵️X gets excited to buy the memecoin
⤵️X purchases the memecoin on DEX
⤵️They connect the wallet to the DEX and initiate a swap transaction to buy the token.
⤵️X could see the new tokens in their wallet.
⤵️X assumes that the price of the token is going to drop in the future and wishes to sell it to make a profit.
⤵️X find that txn. either fails repeatedly, or the slippage is exorbitantly high.
⤵️ X couldn't further process it !
That's where the honeypot scam sneaks in 🐝
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How does it have a close interlink with DEXEs, though?
→DEXs let users trade tokens using automated market maker (AMM) protocols.
→AMMs aim to offer a secure and smooth trading experience.
→This openness of AMMs allows anyone to list new tokens.
→That's where fraudsters come and exploit the whole system & create honeypot tokens.
----------------------------------------------------------How to save yourself from such Traps?
- Research Thoroughly
- Beware of Excessive Hype
- Consult with Experts
- Opt for Trusted Platforms
- Smart Contract Analysis
- On-chain Activity Monitoring
- Liquidity Pool Evaluation
- Stay Informed
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Zeroswap is soon to integrate to implement robust security measures with top-notch protocols.
💡Stay tuned as we revolutionize the landscape of DeFi with unparalleled protection!