Bitcoin Forum

Creating token is very easy and unless you don't check the contract address of the token, you can be scammed easily. It is very easy to create the same token with same ticker. And on uniswap you may mistakenly bought the wrong token which have no value at all. So, before you use uniswap or other, please make sure you have checked the contract address and be sure that you are purchasing the correct one.

This is one of DEX exchanges flaws, it's decentralized and every users are simply responsible for any choice they made, one step ahead of DEX is how I look at centralized exchanges anyway, you can't list a fake tokens on Centralized exchanges

This is the most important thing is to verify before buying the token, sometimes many people also don't know this, even many are fooled by the token made by scamers by holding an airdrop then later to redeem it by depositing a few other coins so from now on it is very important to pay attention to unknown tokens.

Uniswap is now a target for scammers to keep their site so similar that many people get it wrong and end up taking their assets or vice versa.

If only newbies, not professionals, could make the tokens they wanted.

That is a common issue on a decentralized exchange, not only on Uniswap. Scammers are getting an advantage by using the reputed token name and confusing newbies. I hadn't been using decentralized exchange, but whoever using, it should be very careful about their funds. Buying a token without verifying the contract address from the official source just like a gamble. Traders would be scammed or bought original tokens. It sometimes depends on the experience that is a lack for a newbie.

One good example of this is the bounce finance platform. For everyone's info it's a decentralized platform used for some IDO on new projects. Yes I remember when I've joined a particular project, there are plenty of pools opened for that one and to my observation the contract address has been imitated upon viewing these pools. This is quite dangerous for newbies to encounter since they might taught of that as original one, so better to always coordinate on the project social group before engaging cause scammers are fond of using it. However I'm not sure how they can make it almost same contract address upon viewing on the sale panel of bounce. Scary it is.

Still rug pulls happen on cexes, exit scams from projects, getting delisted due to low volume and you don't have to pay hefty fees just to get listed. For me dex>cex anyday.

Both DEX and CEX have their disadvantages, I would use centralized exchanges for trading purposes any day, also CEX has the best liquidity, rug pull on CEX are only popular on small exchanges like p2pb2b exchange and others, if one had to use CEX I suggest they use the best

Smart contract address is the only way to be sure of what you are buying on decentralized exchanges, the freedom of listing any tokens is what create rooms for all this nonsense habits form scammers, I hope that newbies will learn this and stick with it, DEX isn't entirely safe just because it's decentralized

Some details must be checked carefully but I doubt that newbies will do all steps and check all details. This habit makes them become the most vulnerable people of scammers. Token name and token ticker are the first things to check, then smart contract address, and decimal. The last thing to check is website link (it is almost unnecessary as if you know about the official website, you would click on hyperlink from it and get legit details).

• Token name
• Token ticker
• Smart contract address
• Decimal
• Official website

It's not actually a flaw, because it is decentralized it leaves the burden on the user, so user should educated and make himself aware on how Uniswap and other Decentralized exchange works, treat decentralized exchange very differently on centralized exchange you can make good trading on Uniswap if you know everything about it and how it works.

Been trading many times at Uniswap and OP is right theres a lot of fake projects listed on this exchange what I usually checked is liquidity if big enough then theres a possibility that its a legit one most scam coins listed on Uniswap has low liquidity from $10k-$50k only but the most effective way is to always check token contract of the project.

No doubt DEX is better than CEX. In CEX, volume can be faked while in DEX, it’s too much costly to do such fake volume. But this is one of the benefit which CEX has over DEX.
If fake token can be kept aside and users are aware, DEX are far better.

This scam doesn't work unless the user reads the warnings.
Before trading or joining a new pool, uniswap will notify you of the risks.

Additional protection
Introducing Token Lists
https://uniswap.org/blog/token-lists/

There is the easiest way to protect yourself from fraud.
The first time you buy tokens using the smart contract address.
More details
https://bitcointalk.org/index.php?topic=5270415
Further, when choosing tokens, you will already see their balance, and if it turns out that you want to buy fake tokens, then there will be 0 of them on your balance.

No idea how they can sold the tokens if there is no liquidity provider in that tokens.they can easily list it there but it doesn't mean they can sold it also easily not unless other people believe that they are using the real tokens add liquidity on it then the owner of that tokens will sold it . did I understand it right ? No liquidity providers = no value?

On the technical side, I cannot think of a way to lessen this kind of scam listing on decentralized exchanges. Maybe sort of verification through contract address which shall be made by the dex itself.

For the users, protecting and being aware is the way to avoid these tokens. If you've been an explorer and likes to invest and explore to defis on exchanges, just be careful and always use DYOR.

Absolutely correct on this part , there are some crooks on telegram that putting those fakes uniswap tokens and when they are caught they can just easily deleted those posts.
I have received same message multiple times but good that i am not interested in in uniswap or other same new projects because of these scammers .
Actually Uniswap is seems like created for scammers lol,(Joke) But kidding aside ? i really have no sympathy in this platform , maybe because of the security issue?

This has been done for a long time, because uniswap uses verified token lists. You try to create an empty wallet and connect to uniswap.
If you want to trade Shitcoin, then you will have to enter the address of the smart contract, and then sign a notification that you understand what you are doing.
It is very difficult to buy shitcoin on uniswap now if you read the notifications.

Very true! Only lazy and irresponsible traders will not read the notification from their site before proceeding any transaction. Just look at what you will see upon opening the site. So if you want to be screwed, you will ignore this simple warning.

https://i.postimg.cc/KYshG44L/Screen-Shot-2021-01-29-at-4-52-48-AM.png

The best way to be safe in making a transaction on Uniswap is going to your tokens (the one that you will use for the exchanging?) official telegram group, website, and social media accounts so that you will get the official link for Uniswap exchange for their token.

Well it's going on and hurting a lot of people, I've been involved in IDO projects recently on DEX, it was true that when I started creating liquidity, a lot of counterfeit coins appeared and If you do not pay attention, you can easily confuse, although looking at this is easy for me because I come across many things like this. If you are also returning to trading dex, always give yourself a sense of security when trading, remember to always check your smart contract before adding it to your trading.