The crypto world has never been safe from malicious acts like scams, rug sweater or hacks. This has prompted some heavyweights like Binance to set up DappBay, a platform listing dubious and high-risk projects. As the fishing has been good on the BNB Chain, CZ raises the red alert.
DappBay, if you don’t/no longer want to become a victim
” Red alert ! The following projects have been deemed untrustworthy and carry extremely high levels of risk. »
This is the first message you can see on the DappBay pagethe platform recently launched by BNB Chain to report fraudulent projects.
In just one month of existence, DappBay was able to analyze 3,300 contracts and demystify some fifty dubious projects. Something to help novices to be vigilant before embarking on the crypto adventure.
What would they have liked to have available such a device the victims of scam of the OneCoin type initiated by Ruja Ignatova!
Changpeng Zhao was pleased with this fine catch.
” Our Red Alert platform detected 50 projects as scams or rug pulls. »
How does the Binance Red Alarm platform work?
Around 50 out of 3,300 contracts scanned were classified as scam/rug sweater on DappBay. That’s about 1.51%. To be able to separate the true from the false, Binance took into account 2 very distinct criteria:
- the inconsistency of the performance data announced by the initiators of the project and the actual performance;
- the existence of risks that could influence investors’ funds.
Launch of the tool Red Alarm took place in mid-July, on the initiative of Binance and DappBay. The goal is the analysis of contractual risks allowing the identification of high-risk projects. Moreover, this device is also conducive to the verification of the address of a contract by dApp users. Thanks to this approach, logical flaws and the risk of fraud will be easily detected.
And more, DappBay allows the pre-selection and ranking of the best newly launched DeFi or NFT type projects.
Gwendolyn Regina, Chief Investment Officer at BNB Chain, elaborates:
” More importantly, Red Alarm’s feature helps users stay one step ahead of scammers; the system provides real-time warning of potential risks associated with projects, allowing the community to make informed investment decisions. »
Basically, the BNB Beacon Chain community and enthusiasts will have an effective tool at their fingertips to better understand market trends through the most recent project rankings. And at the same time, they will be able to anticipate the dangers associated with any project.
Nevertheless, it must be recognized that DappBay does not only have a dark side. You can indeed find a complete list of promising future projects.
What about the projects that fell into DappBay’s nets?
50 projects have therefore entered this list. Is it worth considering? Definitely !
Basically, these are spin-offs (replicas or derivatives) of very famous projects like Dogecoin (like BabyDogeGas, Dogechain…) – Dogecoin having already warned against such projects – and Binance (BNB Miner, BNBMiner, BNBStake, etc.). Other innovations related to pandas, cyborgs, koalas or dogs are also part of the accused.
” We tend to place them on the ‘Red Alarm’ list to effectively warn users to steer clear or participate with caution. “, had underlined Regina in an interview granted to Cointelegraph. As the saying goes, “forewarned is forearmed”, we hope you’re not going to get bamboozled by sweet talkers in this vast crypto universe.
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