Study Claims 98% of Crypto Projects Listed on Uniswap Between 2018 and 2021 Were Rugpulls

New report claims 98% of all tokens listed between 2018 and 2021 on decentralized cryptocurrency exchange Uniswap were related to scam, otherwise known as carpet pulls.

A typical rug-pulling scam occurs when developers trick investors into pouring their money into new crypto projects created only for them to exit prematurely.

According to the study, Uniswap’s simplicity and lack of regulation make it a target for malicious actors to effectively conduct initial coin offering (ICO) scams by listing worthless tokens on the platform. .

Researchers from the University of Barcelona conducted the study. They examined 27,588 tokens, of which 631 were classified as non-malicious and 26,957 were identified as malicious.

Read also : This Instagram Influencer Pleads Guilty to Snatching $2.5 Million in Bitcoin From His Fans

A total of 24,870 tokens marked as malicious were fast draws, while the remaining 2,087 were non-LP burns.

Speaking more about Uniswap, the researchers said, “To obtain the state of the Uniswap exchange and the tokens, we used the events produced by their respective smart contracts. Any node connected to Ethereum The JSON-RPC API can observe these events and act accordingly. Events can also be indexed so that event history can be viewed later.

That being said, Uniswap has become one of the the most important DeFi protocols in the industry.

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