An Individual Creates a Fake Ecosystem to Generate Artificial On-Chain Activity
An unknown individual has gone to great lengths to fabricate on-chain activity in the crypto world. This person created an entire ecosystem that includes its own token, wallets, and even a decentralized exchange (DEX) solely for the purpose of faking on-chain activity.
After successfully launching the DEX, the individual added liquidity to GEM tokens using 80 ETH to create artificial value for the token.
“Then he swapped $gem tokens that he claimed from 21877 wallets at gem/eth pair and gained 0.6-0.7 eth value of profit.”
@lingland09
To streamline the process, the individual developed a trading bot that executed ten transactions with a volume of $10,000 on the zkSync Era network. While the motive behind this activity remains unclear, it is speculated that the individual may be a “professional airdrop hunter” preparing for a potential airdrop on the zkSync Era network.
Earlier this year, a similar incident occurred with Arbitrum’s governance token airdrop, revealing flaws in Sybil detection rules. The incident involved approximately 280,000 addresses belonging to the same person and over 148,000 Sybil airdrop addresses.
Hot Take: Synthetic Activity Raises Concerns About Blockchain Transparency and Security
These recent incidents of synthetic and fake activity in the blockchain ecosystem highlight the challenges faced in ensuring transparency and security. The ability for individuals to easily create fake wallets, tokens, and exchanges undermines the integrity of on-chain data and poses risks to legitimate participants.
As the popularity of cryptocurrencies and decentralized finance (DeFi) grows, it becomes crucial for developers and platforms to strengthen their security measures and detection systems against Sybil attacks and artificial on-chain activity. Additionally, regulators and industry organizations must collaborate to establish robust standards and guidelines to mitigate the risks associated with synthetic activity. Only through these collective efforts can we protect the integrity and credibility of blockchain technology.
Source: Crypto.news
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