Solidus Labs: It has been a year of fraudulent tokens


  • According to blockchain risk monitoring company Solidus, about 118,000 scam tokens were deployed between the beginning of January and the end of November.
  • According to Solidus’ 2022 “Rug Pull Report,” 117,629 “scam tokens” were deployed from January 1 to December 1. In comparison to 2021, when Solidus found just under 83,400 scam tokens, this is a 41% increase.
  • The majority of counterfeit BEP-20 tokens—12% of the total—are found on the BNB Chain.

Solidus Labs claims millions of investors were defrauded this year by the issuance of over 350 phony cryptocurrency tokens per day

About 2 million investors have lost money as a result of these scams, which is more than the projected 1.8 million creditors who suffered as a result of the collapse of the cryptocurrency exchanges and loan platforms FTX, Celsius, and Voyager.

A “honeypot,” or a token smart contract that forbids resale by purchasers, was the most widely used scam token kind.

The $3.3 million Squid Game (SQUID) token scam, which increased by 450% in a matter of days as investors bought the hype but were unable to sell, was the most widespread “honeypot” successfully carried out in 2022. The scam culminated in the anonymous founders allegedly fleeing with investor money.

From January 1 to December 1, 117,629 “scam tokens” were deployed, according to Solidus’ 2022 “Rug Pull Report.” This represents a 41% increase over 2021, when Solidus discovered slightly fewer than 83,400 fraudulent tokens.

Rug pulls also harm centralized exchanges (CEXs), as many of the people behind these nefarious tokens utilize them to finance their dubious projects and cash out the ill-gotten earnings.

Around $11 billion in ether is claimed by Solidus. Since September 2020, stolen scam tokens have passed via 153 CEXs, the majority of which are regulated by US authorities.