Binance chain platform Red Alarm has added 50 new projects as potential scams or rug pulls. the BNC red alert system works to identify risky on-chain projects for its users to avoid.
The system flags projects based on two main criteria — if the contract performs differently from what the project owners advertised or if the contract shows risks that might influence users’ funds. Binance and Dappbay collaborated on bringing the Red Alarm tool to Binance in July.
The highlights of the recent red alarm list include multiple crypto spin-offs resembling Dogecoin (DOGE) as well as Binance. Some of the projects mimic Dogecoin’s animal influence with pandas, koalas, and even cyborgs.
In an interview with CoinTelegraph, Gwendolyn Regina, investment director at BNB Chain, says that the Red Alarm system analyzed 3,300 contracts in July, adding that the company continues to develop further measures for highlighting deceptive practices in the ecosystem.
“Most importantly, the Red Alarm feature helps users in staying one step ahead of scammers; the system warns in real time of potential risks associated with the projects, allowing the community to make informed investment decisions.”Gwendolyn Regina
Binance’s platform Red Alarm also allows users to assess project risks by entering the contract address to discover if it has logical flaws or fraud risks. While it is a great tool for BNC users, the company still advises users to “do your own research.” Any projects can succomb to scams and cyber attacks.