Dechat Mistakenly Promotes Honeypot Scam in Token Announcement
A recent mishap during the token announcement of the Web3 project Dechat has caught the attention of crypto investigator ZachXBT. Screenshots shared by ZachXBT revealed that the Dechat team had mistakenly shared the wrong smart contract address, leading users to a fraudulent Pancakeswap V2 platform. This mistake raised concerns among early investors who were unable to sell or dump their tokens due to a capped “Sell Tax” of 100% at the token generation event (TGE). The Dechat team acknowledged their error and rectified the issue by providing the correct smart contract address.
Dechat Trading Goes Live with Native DECHAT Token
Despite the mishap, Dechat proceeded with its trading launch and announced that its native DECHAT token is now available for trading on various centralized crypto platforms including Kucoin, Bybit, Gate.io, HTX, and MEXC.
User Claims Loss Due to Scam Link
While it is unclear how much money was lost as a result of the scam link, one user claimed to have suffered undisclosed losses. Crypto investigator ZachXBT responded to this user’s comment, confirming that the project initially posted the fake smart contract for a scam. However, he expressed hope that the Dechat team would compensate those affected by the mistake.
Honeypot Crypto Scams: Quick and Easy to Create
Honeypot scams are just one type of crypto scam prevalent in the industry. These scams involve using a smart contract loophole to drain users’ funds without their knowledge. To entice investors, scammers offer attractive incentives and promise high returns on invested assets. Once they have collected a substantial amount of funds, they exploit a second trapdoor in the smart contract to transfer the funds into their own wallets and crypto mixing services.
According to a report by blockchain security firm Certik, creating a honeypot scam is a quick and straightforward process. Scammers can create such scams within minutes, leveraging social media hype or automation for large-scale operations. Certik highlighted an example involving the Squid Game token (SQUID), where the project team moved $6.38 million worth of BNB tokens into the Tornado Cash platform to make them untraceable.
Hot Take: Be Vigilant Against Honeypot Scams
The incident involving Dechat serves as a reminder for crypto enthusiasts to remain cautious and vigilant when participating in token launches or investing in new projects. Honeypot scams can be deceptive, luring investors with enticing promises and incentives. To protect yourself from falling victim to such scams, here are some key takeaways:
- Thoroughly research the project and its team before investing or participating in any token launch.
- Verify the authenticity of smart contract addresses and ensure they are provided by official sources.
- Stay updated on reputable crypto news platforms to stay informed about potential scams or fraudulent activities.
- Exercise caution when interacting with unfamiliar platforms or websites, especially when sharing personal or financial information.
- Consider consulting with experienced investors or crypto professionals for advice and guidance.
By adopting these precautionary measures, you can minimize the risk of falling prey to honeypot scams and protect your hard-earned funds in the crypto space.
By
By
By
By
By