Binance Coin (BNB) Chain, a blockchain network created by cryptocurrency exchange Binance, has identified more than 50 on-chain projects that pose risk to its users, as reported by Cointelegraph.
A mix of cryptocurrency spin-offs akin to Dogecoin (DOGE), Binance, and others targeting pandas, cyborgs, and koalas are on the list of untrustworthy and high-risk projects, according to Cointelegraph. BNB Chain’s red flag feature, created with the aim of protecting investors from potential rug pulls and scams, flags projects based on criteria such as whether the contract is performing differently than the owners of the project have announced and whether the contract presents risks that may have an affect the funds of the users.
Based on data from Cointelegraph, as mentioned by Gwendolyn Regina, Chief Investment Officer, BNB Chain, the Red Alarm system placed 3,300 contracts in July. “The company continues to develop new measures to highlight deceptive practices in the ecosystem,” she added. New projects that haven’t been tried and tested enough are reported for reasons of scams, rug pulling and phishing. Therefore, real-time identification of risky projects helps protect investors’ funds. Red Alarm also allows users to assess the risk of the project by entering the contract address to find out if it has any frauds or risks.
Additionally, information from Cointelegraph noted that Regina advised investors to conduct their separate research before committing to projects within the BNB Chain ecosystem. Like investors, well-meaning projects are too susceptible to attacks and scams. Trading and liquidity marketplace Velodrome Finance was able to recover $350,000 in lost funds, after it was able to trace the attack to one of its team members. While many in the community have shown their support for the coder, Gabagool has acknowledged the allegations against him. Later, Vélodrome revealed that it had sought the advice of legal counsel to determine the necessary next steps.
(With information from Cointelegraph)
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