Crypto news

Coinbase’s blockchain venture, Base, has drawn more than 500 Scam tokens.

Coinbase’s launch of “Base” aimed to cultivate a developer community focused on creating decentralized functionalities for users,

thereby boosting utility and customer engagement.

However, this initiative has encountered a significant challenge as it attracted over 500 fraudulent tokens in a relatively short time.

Scam token creators exploit the elements of hype, promises, and manipulative tactics involving prices and volumes,

and unfortunately, the Base network has not been immune to such activities.

Solidus Labs, a crypto market integrity platform based in New York, estimates that scammers have managed to accrue profits of around $2 million through these deceptive endeavors.

Coinbase’s Base initiative faces a wave of scams.

According to a recent Solidus report, scam tokens on Base-based decentralized exchanges generated approximately $3.7 million in trading volume.

Scammers employed two methods to profit from their schemes:

  • rapidly withdrawing liquidity from DEX pairs after attracting significant user investments, totaling $1.7 million.
  • creating and selling a large number of new coins through “minting,” depleting the DEX pair’s Ether reserves, amounting to $300,000. Additionally, scammers executed $2.7 million in buys and $700,000 in sales.

Coinbase has implemented several security measures and features to protect its users from scams.

Here are some examples:

  • Two-Factor Authentication (2FA): Coinbase offers 2FA as an additional layer of security, requiring users to provide a second verification method, such as a code sent to their mobile device, before accessing their accounts.

  • Account Monitoring: Coinbase employs sophisticated monitoring systems to detect suspicious activities and potential scams. This includes monitoring for unauthorized access attempts, unusual trading patterns, and other suspicious behaviors.

  • Email and API Security: Coinbase utilizes email verification and API security measures to prevent unauthorized access and protect user accounts from phishing attacks.

  • Secure Asset Storage: Coinbase stores the majority of its users’ funds in offline, cold storage wallets, which are not connected to the internet and therefore less susceptible to hacking attempts.

  • Compliance and Regulation: Coinbase adheres to regulatory requirements and compliance standards in the jurisdictions it operates in. This helps to reduce the risk of fraudulent activities and provides users with a safer trading environment.

It’s important to note that while Coinbase takes significant measures to enhance security,

users should also take personal precautions, such as using strong passwords, enabling security features,

and being cautious when interacting with unknown or suspicious entities.

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