🥞 Fake Token Scam

It is very easy to understand what a fake token is, because the Web 3 world is just as subject to counterfeit money as the real world we live in. Since there is no access mechanism for token issuance on major main networks, and the capital and technical threshold required to issue fake tokens with the same name is not high, everyone can issue tokens by deploying smart contracts, resulting in fake tokens with the same name being common and hard to distinguish between real and fake. In particular, the widely known various stable coins and mainstream popular coins are the hardest hit by fake tokens, such as USDT, DAI, ETH, BNB, EOS, etc. When we search for token names in some DEX, it looks like this.

Only the first CAKE is a real token, the rest are fake tokens with the same name. Of course, in order to avoid situations like this, where it is difficult to distinguish between real and fake tokens, we only show the correct tokens when searching for tokens in Envo, as follows.

But there are still opportunities for fake token scams. Many unscrupulous individuals are 'peddling' such tokens through various forms and channels, and this fraud has caused widespread user losses. Buying fake tokens may lead to loss of principal, clicking on phishing links of fake tokens may lead to a clean wallet, and frequent interaction with fake tokens may also negatively affect your on-chain identity. According to incomplete statistics, there are as many as 11,325 contract addresses marked as fake tokens on the ethereum chain alone, so it is very important to identify real and fake tokens and prevent fake token scams. How to prevent the fake token scam?

Use the swap function in your wallet to trade, which can help you find the right tokens quickly. When trading on other platforms, make sure to verify the contract address of the token.

The best way to identify a real token is by distinguishing its contract address. The token name, issue size, etc. can be imitated, but the specific address of the contract is unique as a way to locate the token that is 100% correct.

Identify whether the project has issued coins or not. Recognize the official platforms of the major social media of the project team, confirm whether the tokens have been issued and verify the accurate token address.

Don't have the mentality of taking advantage of small bargains. Fake coins often attract users through gimmicks such as moving arbitrage, over-the-counter trading, and low price exchange.