Scams on BNB Smart Chain Decrease by 75% in Q3 2023
A recent report by AvengerDAO and security firm HashDit reveals that scams facilitated on the BNB Smart Chain (BSC) have significantly decreased from $55.4 million in Q2 2023 to $13.6 million in Q3 2023. This represents a 75% drop in the amount lost to scams.
The decline in scams can be attributed to several factors. First, there has been an increase in overall awareness among community members regarding fraudulent activities. Additionally, security products have improved in detecting and flagging malicious websites and activities. Furthermore, community members have become better at identifying scams early on and issuing warnings, preventing scammers from succeeding.
Rug Pulls Remain a Major Concern
Despite the decrease in overall scam losses, rug pulls continue to be the most common attack vector on the BSC, accounting for 67% of total losses in Q3. Rug pulls occur when deceitful projects entice investors with false promises but ultimately disappear with their funds.
Reserves and Price Manipulation on BSC
In addition to rug pulls, the report highlights that reserves and price manipulation were prevalent on the BSC during Q3 2023. Hackers took advantage of poorly designed smart contracts to exploit these vulnerabilities.
BSC’s Appeal to Malicious Actors
On October 20, security experts pointed out that malicious actors may prefer the BSC over the Ethereum blockchain due to its lower costs and perceived lower security. While fees on BSC are significantly lower than Ethereum, the network’s stability and speed remain comparable. This lack of financial pressure incentivizes hackers to exploit the BSC for their illicit activities.
Hot Take: Decrease in Scams on BNB Smart Chain Signals Progress
The significant decrease in scams on the BNB Smart Chain during Q3 2023 is a positive development for the crypto community. It reflects the growing awareness and vigilance of community members, as well as the effectiveness of security measures in detecting and preventing fraudulent activities. However, rug pulls remain a persistent issue that needs to be addressed. As the BSC continues to evolve, it is crucial to prioritize security and strengthen smart contract designs to safeguard investors’ funds and maintain trust in the ecosystem.
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