BNB Chain's Red Alert Flags 191 High-Risk Projects
Zach Anderson Apr 18, 2023 11:03
Binance's BNB Chain has added 191 new high-risk projects and decentralized applications (DApps) to its weekly red alarm list. The list is based on smart contract assessment and includes projects suspected of issuing fake tokens, having high tax fees, or malfunctioning websites or Twitter handles. The alert is aimed at helping users research before investing, and does not represent the risk level of the underlying DApp projects.
Binance's BNB Chain has taken a proactive step to help users in their investment research by updating its red alarm list to include 191 high-risk projects and decentralized applications (DApps). The list, which is updated every Friday, is based purely on smart contract assessment and includes projects that are suspected of issuing fake tokens, having high or opaque tax fees, or simply because their websites or Twitter handles don't work.
The red alarm list serves as a warning to users to carry out their own due diligence before investing in any of the flagged projects. It is important to note that the list is not investment advice and does not represent the risk level of the underlying DApp projects. Instead, it is aimed at helping users make informed decisions by highlighting potential risks associated with the projects.
In addition to the red alarm list, BNB Chain has also launched a portal that allows users to scan any BNB Chain project for risks. The portal provides users with detailed information about the flagged projects, including the reasons for the red alert, the smart contract address, and the token symbol.
Out of the 191 new projects added to the list, three were flagged for suspected funding by assets originating from Tornado. These projects are CycGo, Piston token, and Shorter Finance. BNB Chain's red alert serves as a warning to users to be cautious when investing in these projects.
On April 10, BNB Chain also began testing BNB Greenfield, an in-house attempt to deliver decentralized storage solutions. The move is part of Binance's larger strategy to expand its offerings beyond cryptocurrency trading and into the broader blockchain industry.
With the increasing popularity of decentralized finance (DeFi) and non-fungible tokens (NFTs), the risk of fraud and scams in the blockchain industry has also increased. BNB Chain's red alarm list is a timely reminder for users to conduct thorough research before investing in any project. By providing users with relevant information about potential risks associated with projects, BNB Chain is playing an important role in promoting transparency and accountability in the blockchain industry.
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