As the cryptocurrency market goes through a turbulent time, the market is filled with duplicate projects wanting to cash in on the hype. One such copycat incident was highlighted by blockchain security firm PeckShield. The security firm alerted the community of a Floki Inu duplicate, Snowflake Floki being a honeypot scam.
PeckShield Alert tweeted,
Honeypot scam
Noting the popularity smart contracts have received in time and also from scammers. With advancing technology, hackers have also scaled up and created unique kinds of contracts. Known as Honeypot, these smart contracts have a design issue that allows an arbitrary user to drain Ether from the contract if the user sends a particular quantity of Ether to the contract beforehand.
As per a report, the aim here becomes to deviate users’ focus on the visible weakness so they ignore signs that the contract has a second vulnerability. Since people can easily be deceived, the honeypot scam generally works.
Therefore, PeckShield had to bring attention to this scam as it disabled used to sell the bought token. In such a case, users who have already fallen for the scam could see their wallets get blacklisted. This was the scammers’ way to keep only their wallets safe.
Such a scam was not a new occurrence in the crypto world. Ethereum-based and Binance Smart Chain-based projects have been dealing with such scam projects for years. BSC has been a growing ground for such duplicate projects as issuing tokens was cheaper on the platform similar to Snowflake Floki.
The scam project was launched on Monday on PancakeSwap, a decentralized platform powered by BSC. While some users instantly raised concerns about it, some were naive enough to fall for it.
Investor should not bite into every memecoin
The users in the crypto space have been warned time and again to Do Your Own Research! [DYOR!, however, such scams have become a regular occurrence. Recently, the Squid Game-inspired SQUID token received a lot of tracking and its price surged 40,000%. But, the crypto holders were unable to sell SQUID and turned out to be a scam.
This resulted in a loss of millions of dollars and alarmed the regulators around the world. As Floki Inu along with other projects remain in the limelight, the users would be advised to research before investing.