How much do you know about the routines and countermeasures of counterfeit digital currencies?

DeFi is very popular.

There are various gold mining methods here, such as unbelievable 100-fold investment, distinctive liquidity mining, normal investment behavior, and speculative behavior of adventurer games.

Of course, there is no lack of malicious profit-making behaviors. You may not have thought that there are counterfeit coins in digital currencies. The following is a summary of some existing behaviors of issuing counterfeit currency for everyone to provide a vigilant reference for everyone.

Of course, issuing counterfeit currency is indeed a way to make money. This may also be a phenomenon in the free market or in the world of digital currencies, but it is not advocated for everyone to issue counterfeit currency.

Types of digital counterfeit currency

In the mechanism of automatic market maker, the issuance cost and threshold of a token is very low, so it may exist in some teams using some technical disguise or trading rules to create various fraud projects and issue counterfeit coins.

How much do you know about the routines and countermeasures of counterfeit digital currencies?

Let’s take the implementation of counterfeit SKL technology as an example. The basic principle is that when pairing contracts in uniswap, it first calculates the reserve amount and the balance of the current contract in the Token contract, and then calculates the withdrawal amount of another Token based on the two quantities. .

If the withdrawal amount is greater than or equal to the desired withdrawal amount, it can be taken out.

The Uniswap counterfeit currency contract makes the calculation between the withdrawal amount and the balance wrong, resulting in only buying operations, not selling operations.

In this process, the digital token can be bought but not sold. In fact, it is a counterfeit currency.

In summary, there are mainly the following types of counterfeit currency:

1. It is possible to buy digital currency, but not to sell or restrict selling.

2. Counterfeit currency will be issued with the same name of a well-known currency. Let’s take YFI as an example. YFI and YFII may be real coins with projects, so what are IFY and YFIII?

3. Issuing coins in the name of well-known projects that have not issued coins.

4. Create counterfeit wallets and receive various airdrop rewards. Receiving airdrops for various projects through programmatically generated wallet addresses can be considered an unfair way of leading technology, but it does exist, and to a certain extent this can also be considered a counterfeit behavior.

The following is a summary of the types of counterfeit currencies that may exist in decentralized exchanges and the countermeasures:

How much do you know about the routines and countermeasures of counterfeit digital currencies?

How much do you know about the routines and countermeasures of counterfeit digital currencies?

Take MetaMask as an example. When searching for BTC , many types of BTC Token will appear. When choosing an investment, users must carefully screen the Token information and review their contract addresses.

At the same time, as the project party, you should also think about possible solutions and rescue measures.

Research on Feasible Solutions to Counterfeit Currency

The following are some countermeasures based on the exchange project:

1. Introduce a dynamic selling test when issuing coins. For example, set the minimum value of the sell test to be variable and random. Once it is unsellable, follow up.

2. For well-known projects, the exchange can issue currency reports and introduce a review mechanism. Due to the greater influence of well-known projects on currency listings, the probability of being pegged by counterfeit currency is greater.

Therefore, it is feasible for the exchange to report and review well-known projects. During the review, third-party auditing or community auditing methods can be introduced.

3. When investors search for well-known currencies, rank the currencies in terms of hot spots, trading volume, liquidity, etc., so that the exchange can put labels on the interface to remind investors. For example, when a new currency is listed, the user will be reminded after searching. Well-known currencies carry special marks.

4. Refer to the Token list released by other decentralized exchanges, which is similar to the whitelist mode and can be updated at a fixed frequency.

5. Launch community tutorials and actively guide users to identify them.

 

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/how-much-do-you-know-about-the-routines-and-countermeasures-of-counterfeit-digital-currencies/
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

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