At least 4 tokens were detected impersonating Coinbase’s Base

At least 4 new tokens with similar names to Coinbase’s new blockchain have been discovered.

Coinbase

Coinbase launched its own layer 2 blockchain yesterday, built in partnership with Optimism in its OP stack.

The new layer 2 blockchain called Base will host many of Coinbase’s on-chain products and provide developers with a low-cost EVM.

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Unfortunately, opportunistic bad guys are once again trying to make a quick buck off other companies’ success. Less than a day after Base launched, Solidus Labs announced through its Token Sniffer website that it had identified at least four new tokens, all of which have the same name as Coinbase’s new product, such as Base Token, and even a very generic name “Coin Token”. Chain” “.

These coins were an attempt to project legitimacy, hoping to lure gullible users into buying them before realizing they had nothing to do with Coinbase. Unfortunately, there was a more serious problem: 3 of the 4 tokens mentioned appeared to be honeypots according to token sniffers.

In the crypto world, a honeypot is a smart contract that once funds are deposited into a wallet, no one other than the creator of the contract is allowed to withdraw the funds, which means that even if users realize they have been scammed, they cannot Do a lot.

One of these tokens, BASE, surged 250% to a price of $7.05 — giving the token a market capitalization of around $1 million — and fell below $2 at press time.

Additionally, Coinbase stated that it has no intention of issuing any tokens related to the new blockchain. Therefore, any other such tokens may be considered fraudulent.

billionmarket not mature enough

Unfortunately, new tokens trying to cash in on market hype are not a novel scene, suggesting a certain degree of immaturity in the market in the crypto space.

According to Darius Tabatabai, founder of Vertex Protocol DEX, users who purchased these tokens were misnamed or scammed.

“Coins minted on top of foundation may seem like an important project, but simply taking advantage of the news cycle is a sign of chronic immaturity for digital assets. Anyone buying these products is either making a mistake on a protocol that does something completely different, Or just fall into a deliberate scam.”

Scams like Squid Game Token are notoriously brazen at best, but recent examples of AI-focused tokens trying to capitalize on rising interest are equally unlikely. These problems are exacerbated when bots buy new tokens to refine projects.

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According to Crypto Potato


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