BNB Chain, the blockchain network created by crypto exchange Binance, has detected over 50 projects on the chain that could pose a significant risk to users.
With BNB Chain’s Red Alarm feature, it works to protect investors from rug pulls and potential scams. Projects that meet two main criteria are reviewed: if the contract is executed differently than advertised by the project owner, and if the contract represents a risk that could affect user funds.
Gwendolyn Regina, investment director at BNB Chain, said the Red Alarm system analyzed 3,300 contracts in July alone, adding that the company is still developing additional measures to highlight scams in the ecosystem.
Untested new projects And also the lack of actual products will be flagged by the system. Judging by the obvious properties that have been used in scams, rug pulls and phishing.
“We always put it on the ‘Red Alarm’ list to warn users to avoid or participate with caution.”
As a result, real-time identification of risky projects is a proactive measure to help protect investor funds. Red Alarm also allows users to assess project risk by entering the contract address to: See if there are any logical flaws or fraud risks.
In addition to BNB Chain measures, Regina advises investors to “Do your own research” while engaging with projects within the BNB Chain ecosystem.
However, even well-intentioned projects are vulnerable to the same attacks and scams by Velodrome Finance, a trading and liquidity market. Just recovered $350,000 of lost funds after discovering an attack from a member of his own team. After an internal investigation, Velodrome revealed: We are very disappointed. We have learned that attackers are teammates.”
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