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Chinese state-run TV network draws attention to DeFi scams on Uniswap

Chinese state-run TV network draws attention to DeFi scams on Uniswap

Over the past few years, we’ve seen a number of scams arise on the Ethereum platform. Clearly, the lack of proper regulation is a problem, but it’s not the only issue. The main issue seems to be the lack of users on the platform, which prevents platforms from building a robust audience that can be targeted for scams.

On Wednesday, July 10, the official news program “News of the Day” reported on a website called Uniswap, a decentralized exchange that was scheduled to launch on July 11. The website was operated by a company called Suning, which is a subsidiary of a Chinese TV network called China Central Television (CCTV). After the news report aired, the website became unavailable, and the company account on WeChat, the most used messaging app in China, was also disabled. Uniswap has been shut down, and all of the funds held on the site have been frozen.

China’s media has recently been drawing attention to what it describes as “unconventional financing” involving Binance’s Uniswap project. Uniswap is a crypto project that offers an alternative to the crypto asset of the same name. Binance, which is headquartered in Hong Kong, recently announced that its Uniswap project had raised $2.5 million through an initial coin offering (ICO). The funds were raised in part by converting Binance’s own cryptocurrency, Binance Coin (BNB), into Uniswap’s asset of the same name.. Read more about what is uniswap and let us know what you think.

Chinese state-run TV network draws attention to DeFi scams on Uniswap CCTV-13, a television network owned by state-controlled China Central Television (CCTV), today released a new report revealing the ease with which attackers can create fraudulent tokens and sell them on decentralized finance (DeFi) platforms such as Uniswap. CCTV, China’s largest official television station, heard about Uniswap and asked the security company to show how to issue coins on Uniswap and pull the prank, noted Colin Wu, a journalist who specializes in cryptography in China. CCTV, China’s largest official TV station, took notice of Uniswap and asked the security company to show how parts on Uniswap can be detached and the carpet removed pic.twitter.com/9lnX2PAU7I – Wu Blockchain (@WuBlockchain) 2. June 2021 The CCTV-13 report explains that in the DeFi ecosystem, literally anyone can create their own tokens – even those that mimic other projects. As an example, the reporter mentioned TRTC, a fake token that surfaced last November. Shortly after TRTC was launched and trading began, users discovered that they could not sell their tokens after buying them. Indeed, the TRTC smart contract provides that only its creator can authorize the sale of tokens. In the end, TRTC’s developers managed to steal about 59 Ethereums (about $165,000 at today’s prices) from their unsuspecting victims.

Be careful when pulling at the mats

This scam, known as carpet-pulling, usually ends with the fake token developers fleeing with traders’ money after emptying decentralized liquidity pools, CCTV-13 notes. As an example, an engineer from SlowMist, a blockchain security company, demonstrated how transactions are organized on Uniswap. Interestingly, according to China Firewall Test, a website that allows users to check whether a site is blocked by China’s Great Firewall, Uniswap and all its subdomains are apparently not accessible from within the country. So it is not clear why reporters and experts at CCTV-13 decided to use Uniswap as an example. Surveillance of bitcoin mining and trading is now steadily increasing, CCTV-13 concluded. As mentioned, following the bitcoin mining debacle last week, Chinese state media published several articles and reports highlighting the various risks of cryptocurrencies. For example, the Xinhua news agency pointed out the dangers of excessive bitcoin trading on Saturday.

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If you’ve ever heard of the word “DeFi”, you’re not alone. It’s a buzzword that’s been around for a few years now, but it seems to have really taken off in 2018. The idea of “DeFi” is that it’s actually a kind of “crowdfunding” for cryptocurrency. Basically, you agree to pay a set amount of money to a project, and if the project gets funded, you get your money back. Of course, there are a lot of scam projects that try to steal your money, and these are called “DeFi scams”.. Read more about uniswap fees and let us know what you think.

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