Crypto Adds Unsavory Footnote to Dreadful 2022: Year of the Rug Pull

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Crypto Adds Unsavory Footnote to Dreadful 2022: Year of the Rug Pull
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Solidus Labs data shows that fraudsters deployed over 117,000 scam tokens from Jan. 1 to Dec. 1, a vast increase over the prior year. _jocelynyang_ reports

The year 2022 is likely to go down as one of the worst ever in the blockchain industry’s volatile history.

A new report from blockchain risk monitoring firm Solidus Labs shows that fraudsters deployed over 117,000 scam tokens from Jan. 1 to Dec. 1, 2022, a 41% increase over the full 2021. The study also revealed that 8% of all Ethereum tokens are programmed to execute rug pulls, while 12% of all BNB Chain tokens are alleged to be scams.

“These fraudsters – benefiting from the fact that more than 99% of their malicious tokens have evaded detection under traditional approaches to scam identification – deposited and withdrew a combined $11 billion worth of ETH to/from 153 different centralized finance [CeFi] exchanges during the time period we studied,” the report read.

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