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A new study has found nearly all crypto projects listed on Uniswap between 2018 and 2021 were malicious and scam-related.\u00a0<\/span><\/p>\n The study titled DO NOT RUG ON ME: ZERO-DIMENSIONAL SCAM DETECTION, was conducted by three researchers; Bruno Mazorra, Victor Adan, and Vanesa Daza from the University of Pompeu Fabra and the University of Barcelona.\u00a0<\/span><\/p>\n Uniswap<\/a> was created in 2018, and the protocol describes itself as a growing network of decentralized finance (DeFi) applications.<\/p>\n The DEX has more than 40,000 Ethereum smart contract (ER20) compatible tokens hosted on the platform to provide users with options for trading different crypto assets. Over the years, Uniswap has become one of the most significant DeFi protocols in the industry, processing more than $1 trillion in trading volume since its inception.\u00a0<\/span><\/p>\n While Uniswap is the biggest DEX in crypto, recent findings<\/span><\/a> by researchers show that 98% of all the projects listed on the protocol between 2018 and 2021 were rug pulls.\u00a0<\/span><\/p>\n Rug pull<\/a> is a popular technique used by scammers to defraud DeFi investors. They develop new projects, create marketing hype, and abandon the project while running away with investors\u2019 funds.\u00a0<\/span><\/p>\n The study found that Uniswap\u2019s simplicity and lack of regulation make it a target for malicious actors to efficiently conduct initial coin offering (ICO) scams by listing non-valuable tokens on the platform.\u00a0<\/span><\/p>\n The researchers surveyed 27,588 tokens, of which 631 were classified as non-malicious and 26,957 were identified as malicious. A total of 24,870 tokens labeled as malicious are quick pulls, while the remaining 2,087 are not LP burns.\u00a0<\/span><\/p>\n The result was compiled by generating the history of all tokens listed on the platform from launch to 2021 using an Infura archive node 18 and the Etherscan API 19 for analysis and labeling.<\/p>\n \u201cTo 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 JSON-RPC API can observe these events and act accordingly. Events can also be indexed so that the event history is searchable later,\u201d the researchers said.\u00a0<\/span><\/p>\n<\/blockquote>\n As expected, the latest investigation received backlash from the crypto community after it was shared on Twitter by the crypto proponent, Drnick.<\/p>\n A Twitter user questioned the efficiency of the investigation, noting that the model used to conduct the research needed the inclusion of the token\u2019s liquidity\/volume.<\/p>\n Sorry, but that\u2019s a hell of a flawed methodology for that claim. They literally took ALL tokens since 5\/20 \u2013 27k in total & didn\u2019t bother to filter them by liquidity\/volume\u2026anything. \u2014 Maya Zehavi (@mayazi) October 31, 2022<\/a><\/p>\n<\/blockquote>\n PrimeXBT Special Offer: Use this link<\/a> to register & enter POTATO50 code to receive up to $7,000 on your deposits.<\/b><\/p>\n<\/div>\n<\/div>\n <\/p><\/div>\nCould Uniswap Be Housing Fake Projects?\u00a0<\/span><\/h2>\n
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Crypto Community Reacts\u00a0<\/span><\/h2>\n
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That\u2019s like saying 97% of Twitter accounts are fake, but none were active during the last year<\/p>\n
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