2023-08-18 00:10:11
© Reuters Coinbase’s blockchain has racked up over 500 scams since launch
CriptoFácil – Coinbase’s (NASDAQ:) layer 2 blockchain, Base, has caught the attention of the crypto community since its launch in August 2023. However, along with its popularity, the network has been the target of scams and fraudulent tokens, like BALD.
Even before its official launch, the BALD memecoin liquidity pool on LeetSwap, a grassroots-based exchange, was the target of a rug pull, a scam where the developer of a token or NFT suddenly abandons the project, taking the capital of the investors.
In this case, the scammer is estimated to have made a profit of $5.2 million. DeFi lending platform SwirlLend was also the victim of a scam by its developer on Wednesday.
The increase in the number of base scams has generated great criticism in the crypto community. Solidus Labs has published a report on DEXs and Base-based memecoin projects.
The report reveals that the number of fraudulent tokens on the blockchain crosses the 500 mark, with some of these scams raking in millions of dollars from investors.
Coinbase Base Scams
The BALD case resulted in a $5.2 million loss for investors, while over $728,000 is locked in SwirlLend.
Analysts at Solidus Labs warned users about the risks of memecoins and DEXs released on BASE. Funds lost due to rug pulls or tokens listed only on these DEXs leave no room for recovery or withdrawal in case of exploitation.
Between July and the official launch in August, tokens such as BASEPEPE (BPEPE), Baby Yoda (YODA) and BALD were launched on BASE. Around 300 of these tokens allowed their developers to issue an unlimited number of units, influencing the prices of these assets.
Another 60 tokens have limited resale of assets on exchanges, according to Solidus. A trading volume of approximately $3.7 million was generated on base DEXs, while scammers make profit by manipulating prices and volumes.
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