Over 80% of flagged entities were "fake tokens."
BNB Chain, a blockchain launched by cryptocurrency exchange Binance, has included almost 200 entities to its red alarm list.
According to the blog post shared on April 16th, the list includes 191 high-risk projects and decentralized applications (DApps) currently hosted on its blockchain.
Did you know?
Want to get smarter & wealthier with crypto?
Subscribe - We publish new crypto explainer videos every week!
How Does Cryptocurrency Work? (Explained with Animation)
The red alarm list, updated every Friday by BNB Chain, identifies risky projects and DApps based on smart contract evaluations.
The 191 newly added projects are suspected of issuing fake tokens, charging high or hidden fees, or having non-functional websites or Twitter accounts.
BNB Chain's announcement urged users to review the weekly red alarm list to stay informed about questionable actors on the network.
Users can access a portal to scan any BNB Chain project for potential risks. Among these flagged projects, CycGo, Piston token, and Shorter Finance were identified as potentially funded by assets originating from sanctioned crypto mixer Tornado Cash.
Other projects included in the list are Expert Doge, OnlyBrain, BNB Daily Finance, LZ Swap, TradeTogether, The Cake Monster, and so on. Approximately 156 entities listed by BNB Chain are "fake tokens."
It is crucial to remember that BNB Chain's alert system does not offer investment advice or determine the risk level of the underlying DApp projects. Instead, it serves as a tool to aid users in their research before making investment decisions.
It is worth noting that at the beginning of April, Immunefi shared a report stating that during the first quarter of 2023, BNB Chain accounted for a whopping 73.3% of rug pull scams. In particular, Immunefi estimated that malicious actors bagged over 40% of all stolen funds from the BNB Chain.
