Crypto firm MetaMask recently confirmed that it would soon launch its own $ MASK crypto token in the wallets of its existing users. Following development, a supposedly fake MetaMask token emerged on the crypto market, which was available for trading on the Uniswap platform.
In a short period of time, this MetaMask token, built on top of the Ethereum blockchain, reportedly skyrocketed 2,600 percent. As soon as the $ 1 million worth of fake tokens (roughly Rs. 7.4 crore) were sold, the sale was blocked, raising a suspicion of scam.The unidentified scammers, according to a report by CoinCodeCap, misled some people who were expecting the launch of the MASK token with their bogus offer.
The exact number of victims of this scam is unclear.The token could only be bought and not sold, which was another reason why doubts about whether the token was a scam gained steam.Crypto Scammers Will Receive Up To 5 Years In Jail Under New UAE RegulationsSome tech enthusiasts posted their personal research on Twitter, revealing that the fake token received a verified status after scammers used the DeFi tools site DexTools to do so.
So far, DexTools has not commented on its role in not being able to filter cybercriminals from misusing its platform.The incident that is being classified as a “carpet tug” scam is also called a “honeypot” hack played by crypto scammers. While honeypot scams target less informed people, carpet drag scams occur when cybercriminals abandon their malicious projects after they have raised the target amount of capital.
In a recent report, research firm Chainalysis revealed that scams garnered more than $ 7.7 billion (roughly Rs. 58,697 crore) from cryptocurrency investors this year. The most common form of scam was the classic carpet pull, according to the report.Norton predicts a rise in cryptocurrency scams and hacktivism next year
Carpet pulling is prevalent in DeFi because, with the right technical knowledge.
It’s cheap and easy to create new tokens on the blockchain and have them listed on decentralized exchanges (DEX) without a code audit.In November, for example, investors in a new cryptocurrency called “Squidgame Cash” or “SQUID” inspired by the Netflix series Squid Games apparently “threw themselves off the mat” after the token plummeted by 99.99 per cent. cent overnight.