Coinbase’s Base Blockchain Attracts Scammers and Fraudulent Tokens
Coinbase has introduced “Base” as a platform for developers to build decentralized features. However, this new blockchain has also attracted over 500 fraudulent tokens in a short period. Scammers have managed to profit around $2 million from these scams by using hype, promises, and manipulating prices and volumes.
Main breakdowns of the content:
– Scammers have generated approximately $3.7 million worth of trading volume on Base-based decentralized exchanges.
– They have executed $2.7 million worth of buys, $700,000 worth of sales, and $300,000 worth of wash sales.
– Scammers withdraw liquidity from their DEX pairs or create an excessive number of new coins to sell and deplete Ether reserves.
– BALD, a memecoin, attracted significant capital and users, pushing its price up by 4,000,000% and attracting over $68 million in trades.
– The creator of BALD made over $5.2 million by promoting it on social media and pumping up its price on a Base-based decentralized exchange.
Hot Take:
While Coinbase’s Base blockchain offers new opportunities, it also attracts scammers looking to exploit vulnerabilities. Users should conduct thorough research before participating in any decentralized application and be cautious of meme coins and decentralized exchanges on the layer-2 solution, as there is no means for recovery or withdrawal if an exploit occurs.
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