Fake token on swap platform

[ai milestone]

literately malfunction token. The problem is the token can only 'buy', but can't be sold. There are tricks in the selling code that only the owner (scammer) can sell. Outside people can only buy but never sell successfully. The scammers create the pairing pool using their token, then buy it to create an up-shooting curve. They will come back later to collect all ETHs leaving the garbage tokens stuck in tricked buyer's account.   

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[jossiel]

If that's for real, these developers are desperate just to get money from the people. It's completely stealing if there's no sell option for those tokens. But isn't this the job of the platform developers?

or the project developers can easily set those codes and won't allow people to sell? Be vigilant where you invest your ETH guys, scammers are to be found everywhere and in every investment hype, they are present.

[shinratensei_]

That's the trick that has already used by the scam FLM. Basically, this is an old trick and it's so easy to know whether it's real or fake coins from the smartcontract. The problem is people in these days are too lazy. Did you know about rope? That's a scam coin but people were also pumping it just like a legit coins.

The fake FLM was also using its own resources to scam others because the owner itself has become a party who has been pumping and buying its own coin in the market.
Too much scam projects were rug pul the ethereum from the liq pool.

[maxreish]

They just merely thought that its because the token is pumping, it is a good choice to buy it. Not knowingly that it was controlled by the team to pump and dump the price. Worst, just like that token stated by the OP, it was a fake coin. I never thought these trick existed, I mean where these coins listed btw? If it can not be exchange because there's no sell, what exchanhe platform gonna allow this?

[masphie]

May be they progress to enter some exchange and swap platform is the first step towards the next market.

But, does not rule out the possibility this is a trick for scammers.

[SquirrelJulietGarden]

You have to check smart contract address. Fake tokens can be detected by smart contract address. Two tokens can not use same smart contract address. Fake tokens can try to use same token tickers of real ones but they can not take smart contract address.

[Lordhermes]

I might understand your point a little bit but that may seem different as you may think, I feel the issue is that your trade order isn't executed because of low volume on that exchange, and may not be a scam exchange.
Selling some coin happened to be that the coin trading has a low volume , there are sometimes trade order aren't executed while trade history is steadily showing, if it happened to be so, then note that the exchange is using bot to deceive traders.

As simple way of selling your coin is to look at the sell order created by other traders, write exactly the amount of the highest sell bidder, and hit sell button, immediately your your sell order would be executed. The disadvantage of this process is that, you may sell at lower price that wouldn't fetch you enough gain, but in as much as your coin is sold out, stop using the exchange, instead use a high volume and volatility exchange like Binance, Huobi for next trading platform.

[ryzaadit]

If you using UNISWAP, before doing a trade you should see the "Red Warning" from them about all token trading on decentralized exchange. All token can be trade just using their contract address, so make sure you trade with the right token.

Nothing to much we can do about these, even the platform exchange can handle it what we can do the user need to know what they do. Check all contract they want to trade, fake or real.

[peterlustig]

I knew that in the WAVES platform, there are few script tokens that we can buy from developers but, when it comes to selling, we can't sell them. I had no idea similar can also be done ethereum chain. Damn these scammers have loads of tools at their disposal.

[jacafbiz]

This is a common theme in the space for anyone that is 5 years or more in the space, it is just that now with Uniswap it is very easy to scam people, Yobit use to be the home for most of these scams then, coin pump like crazy and then the team dump on people and the coin die

[mersal]

literately malfunction token. The problem is the token can only 'buy', but can't be sold. There are tricks in the selling code that only the owner (scammer) can sell. Outside people can only buy but never sell successfully. The scammers create the pairing pool using their token, then buy it to create an up-shooting curve. They will come back later to collect all ETHs leaving the garbage tokens stuck in tricked buyer's account.   

Is there any projects created in such way? If someone create such account then surely people will identify and let the crypto community to know about their existence and the project will be having no value at all, so it just for one time profit?

[nicecrypto]

That's the trick that has already used by the scam FLM. Basically, this is an old trick and it's so easy to know whether it's real or fake coins from the smartcontract. The problem is people in these days are too lazy. Did you know about rope? That's a scam coin but people were also pumping it just like a legit coins.

The fake FLM was also using its own resources to scam others because the owner itself has become a party who has been pumping and buying its own coin in the market.
Too much scam projects were rug pul the ethereum from the liq pool.

i think it is highly important for dex users to always check the smart contract of any token they want to trade on, innocent users who can not identify the difference that the @op has just pointed out will definitely fall victim, i also think this is one of the disadvantages of using dex because it is very easy for any one to create or list a token there (especially fake tokens) to deceive people.

[Shallow]

literately malfunction token. The problem is the token can only 'buy', but can't be sold. There are tricks in the selling code that only the owner (scammer) can sell. Outside people can only buy but never sell successfully. The scammers create the pairing pool using their token, then buy it to create an up-shooting curve. They will come back later to collect all ETHs leaving the garbage tokens stuck in tricked buyer's account.   

This is a nice analysis, and funny enough it will likely happen again and again, as most people only tends to look at the massive growth a coin is having and nothing more.
When it comes to scamming, the developers or the team can go any length just to make sure they succeed, this has always been the way it works. Which is why, most projects will have a successful token sale, get listed, have a few pumps and then exit scam. Now those on swap platforms, owing to the fact trading is decentralized, will also give the scammers upper edge to play around their smart contracts just to achieve their aim of scamming. So from all these, it still remains that, studying whichever project you want to participate in is very important, knowing what the team are up to, their ideas is still a good way to start. Also, when the pump gets overwhelming, you can consider taking your profit while watching to see if truly it is legit or not because most times, when most of these new tokens pumps massively, the dump that follows is also heartbreaking.

[Bitlover10]

Now crypto is going full of scam. Anyone can easily scam with the help of all these kind of swapping services. Uniswap is another scam going on. Many scam project listed their and owner of the exchange only saying to you DYOR. I mean what do think dyor
Everyone is doing dyor but when you allow scam project list on your exchange then you should dyor. I advise everyone keep away from this kind of scam.

[slaman29]

Yup, seen and read about that a lot already. Problem with having DEXs I guess is that anyone smart enough to make that scam contract can sit and set traps there. Worse is lots of people take the bait. What's the alternative? A semi DEX that passes or whitelists audited smart contracts first?

[aryana42]

May be they progress to enter some exchange and swap platform is the first step towards the next market.

But, does not rule out the possibility this is a trick for scammers.

Yes, the opportunity at this time is very open to everyone so that scammers also take advantage of this to deceive many people, so it is clear that we must be more careful and observant in understanding this and in seeing an opportunity that exists.

[poodle63]

Now crypto is going full of scam. Anyone can easily scam with the help of all these kind of swapping services. Uniswap is another scam going on. Many scam project listed their and owner of the exchange only saying to you DYOR. I mean what do think dyor
Everyone is doing dyor but when you allow scam project list on your exchange then you should dyor. I advise everyone keep away from this kind of scam.

most of decentralized exchange gives the ability to anyone to list their project in the platform but not necessarily officially listed and I think it should be a common knowledge not to trade a coin that usually has no ticker in the platform the anything like that. but I do agree though that we need more filter to prevent these devs from scamming people because it's really hurting crypto reputation.

[Akiko]

Now crypto is going full of scam. Anyone can easily scam with the help of all these kind of swapping services. Uniswap is another scam going on. Many scam project listed their and owner of the exchange only saying to you DYOR. I mean what do think dyor
Everyone is doing dyor but when you allow scam project list on your exchange then you should dyor. I advise everyone keep away from this kind of scam.

Even centralised exchange  have the same problem as that not unli Dex if you will check other exchange they are only listing a token/ coins because they can earn money for listing it in their exchange. That's why it's very important for individual persons to make thier own research for a project before putting in all their money and trust it to project owner . it is difficult to avoid the only way that can be used are the things you have learned from your own research on a projects.

[Princejebs]

literately malfunction token. The problem is the token can only 'buy', but can't be sold. There are tricks in the selling code that only the owner (scammer) can sell. Outside people can only buy but never sell successfully. The scammers create the pairing pool using their token, then buy it to create an up-shooting curve. They will come back later to collect all ETHs leaving the garbage tokens stuck in tricked buyer's account.  

Decentralizeation comes with disadvantages and that's one of the challenges we are facing. A random person can create token out of no where and list on exchange without liquidity, you can only buy but cannot sell this tokens, it's ridiculous.

They sometimes mimic token that has been listed on exchanges just to lure investors and traders to buy their fake token in returns for Ether or Usdt. The only remedy to this cause is to check smart contract on market cap and Coingecko for confirmination before proceed with any trade.

[target]

literately malfunction token. The problem is the token can only 'buy', but can't be sold. There are tricks in the selling code that only the owner (scammer) can sell. Outside people can only buy but never sell successfully. The scammers create the pairing pool using their token, then buy it to create an up-shooting curve. They will come back later to collect all ETHs leaving the garbage tokens stuck in tricked buyer's account.  

Decentralizeation comes with disadvantages and that's one of the challenges we are facing. A random person can create token out of no where and list on exchange without liquidity, you can only buy but cannot sell this tokens, it's ridiculous.

They sometimes mimic token that has been listed on exchanges just to lure investors and traders to buy their fake token in returns for Ether or Usdt. The only remedy to this cause is to check smart contract on market cap and Coingecko for confirmination before proceed with any trade.

Its a classic scam that even on the ICO period, there are scammers doing it creating similar pages of the team. This time you just got to use the smartcontract address to see the right one.

This is why there is still the DIY Research before diving into it. There were new tokens that the devs are adding on Uniswap for the purpose of getting funds like ICO, it becomes logical to still learn about the project before investing and not just because there is liquidity to it on Uniswap.

[hakertajniak]

Could you give the name of the token so we can learn the smart contract of it ?
I guess this is why we should not buying token that hyped with no reason.
That could be the trap of the scammer developer to lure people to buy their token.

[cengat]

literately malfunction token. The problem is the token can only 'buy', but can't be sold. There are tricks in the selling code that only the owner (scammer) can sell. Outside people can only buy but never sell successfully. The scammers create the pairing pool using their token, then buy it to create an up-shooting curve. They will come back later to collect all ETHs leaving the garbage tokens stuck in tricked buyer's account.   

Are there any real examples of this?
I mean I totally can believe in such scam scheme, just curious to witness it myself.

[piebeyb]

one example of UNII tokens where they attract attention because people are busy discussing expensive free tokens from uniswap called UNI, they take advantage of market conditions and people who lag behind get free tokens, so many people buy those tokens too and finally those who make them throw away tokens become cheap, their way must be prevented by making threads like this, we see now people come to waste their money buying junk tokens on uniswap, there are many scammer exchange pairs there, so be careful there, by the way I also don't like tokens YFI and other families like YFII as well, that's really not cool

[Gayong88]

Yes. You are right, Talking about scammer will never end. There are many ways for them to drop and sign in especially the previous Uniswap and Defi Platform. What should we do? Get used to doing early anticipation by looking at team profiles, whitepapers, and other supporting literacy such as comments, comments, reviews using Trustpilot reviews so you don't get stuck.

[kindbtc]

literately malfunction token. The problem is the token can only 'buy', but can't be sold. There are tricks in the selling code that only the owner (scammer) can sell. Outside people can only buy but never sell successfully. The scammers create the pairing pool using their token, then buy it to create an up-shooting curve. They will come back later to collect all ETHs leaving the garbage tokens stuck in tricked buyer's account.   

Obviously you are talking about rug pulling which is easily the biggest issue being faced by the current projects and new projects being listed at instant swap exchanges like uniswap where liquidity is controlled totally by the team and being a dex anyone can take advantage and i think uniswap needs to come up with a way out.

[kenelmark]

Are there any real examples of this?
I mean I totally can believe in such scam scheme, just curious to witness it myself.

It is difficult to give clear examples, because the fraud committed by the scammer is very subtle and very cunning too, so to provide evidence it must be summarized thoroughly first so that we can all understand it well.

[Ridwan Fauzi]

The crypto currency sphere will always provide this thing, because a hype I mean when many people talk about the/new project they will forget everything.

The only focus is how to get the coin by hope they will got a good return. As has happened now, maybe your point has been happened in the UNISWAP but yeah hopefully the user here always check and read this thread clearly.

[AlexAtom]

That is a booby trap! If we can only buy the token and can't sell it, what is the purpose for buy the token then ?
Scammers are really trying hard to steal people's money in crypto.
We shouldn't buy new token without doing any research on the project first.

[noorammak]

It's one of the new tricks of the day. New projects mainly impersonating DEFI used the above method to raise capital and disappeared. The buyers consider it a lottery, and they take the risk.
There are several other scams in the past that I know of.
My friend made an OTC transaction to buy Tether and he got his fake Tether back. It is a token with Tether recording but when uploaded to other exchanges it is not possible because it is different from real Tether smart contract.
Another game is to spread fake news about projects on Binance DEX and make a profit.

[Teraboy]

That is a booby trap! If we can only buy the token and can't sell it, what is the purpose for buy the token then ?

When you are facing the advanced scammers who have been scamming the people throuigh their codes and then you must become more than it. It's quite simple that if anyone should do a lot of audits to the code but these days not so many people are capable to do that.

The scammers have been putting the minting and locked function. That makes the only scammer who will be able to sell or control the tokens.
So many rug pull cases happened in the past. Be careful with any contract that is not yet verified.

[darewaller]

There will be a ton of these, the vetting process is not big at all which causes a lot of scams and fakes to be listed there and it causes people to fall in thinking it is a legit coin which causes people to lose money and someone else to take profit. This is not really a new thing because it has been around for a long time and people have done this for a long period of time. There has been fake coins in regular cex listed as well and it isn't the first time this happens.

However there is a solution to this as well, if you want to use an exchange do not use everything you find, people are a bit idiotic that way because they believe into every single exchange and that causes people to just lose, but if you pick a great exchange like binance you will never be faked.

[Xembin]

literately malfunction token. The problem is the token can only 'buy', but can't be sold. There are tricks in the selling code that only the owner (scammer) can sell. Outside people can only buy but never sell successfully. The scammers create the pairing pool using their token, then buy it to create an up-shooting curve. They will come back later to collect all ETHs leaving the garbage tokens stuck in tricked buyer's account.   

Yes, the scammer  can buy  but never sell it Successful in the market because they fail to follow due process to sell the coins . I think with personal research  you can identify fake token in the platform which is be own by scammer and waiting for someone to scam.

[MCobian]

Therefore, don't be careless with investing without doing research first, because now there are so many new token on swap platforms
emerging. In which some new tokens were created by scammers to deceive and steal money from investors. So be careful choosing coins
for investment must be done, or avoid investing in new tokens and choose old tokens which is more safer.

[samcrypto]

There’s a lot of fake token ok Uniswap before and I don’t know if they already address this problem but you still have to be careful on swapping your token, you have to confirm first if its legit or not.

If you’re in hurry to trade, use the best exchange available for your token and this is more safe compare on swapping it normally. The fake projects are everywhere waiting for the new victim, be informed every time you invest.