Dogecoin (DOGE) and Shiba Inu (SHIB) surprisingly appeared on the Cardano (ADA) network. Many people realized that these cryptos are not legitimate. They suspected that these were “honeypots”. Here are the details…
Cardano network has fake SHIB and DOGE
Meme coins have become extremely popular, especially among individual investors. However, with the growing popularity, the number of scammers who want to trick investors into stealing funds has also increased. A new report has revealed that SHIB and DOGE assets are on the Cardano network, specifically TipTool, Cardano’s monitoring and analytics platform. Assets on the network in question are highly suspect. Because both have no bridging information. Also, these assets are controlled by only a few wallets.
Typically, when assets from Ethereum are listed on Cardano, users can see the bridging address. If the address is legitimate, there is no problem using the asset. However, this points out that only a few people are trying to fool those who want to open a contract and buy SHIB and DOGE. In other words, scammers are trying to take advantage of those who want to perform SHIB and DOGE transactions on the Cardano network. This makes the situation a “honeypot” case.
The report noted that so far, around 200 ADAs have been pooled for Shiba Inu and Dogecoin on Cardano. With the increasing number of scams and abuses, one should always be cautious. A listing on a Blockchain does not necessarily mean the asset is legal.
Fraud is on the rise
A new report from cryptocurrency risk monitoring platform Solidus Labs has shown that an average of 15 new fake coins per hour appear on different networks. As of October 10, the team has identified 188,525 smart contract scams across 12 blockchains, including Ethereum, BNB, and Polygon. Most of the cryptocurrencies launched have become honeypots with no real value behind them. Its creators scooped up the funds and fled without providing proper liquidity or trying to market it.
How the Honeypot scam works
“Honeypot” is a term frequently used by cyber security experts, as we have also reported as Kriptokoin.com. It is a metaphor that refers to something designed to lure someone: in other words, it is a trap. Sometimes security professionals actually use their own honeypots to try and catch bad actors. The simplest way to understand a complex phenomenon like a honeypot is to analyze a real case. In 2018, a criminal came up with a pretty clever idea to buy cryptocurrencies from inexperienced users.
The user created a wallet by putting $5,000 in MNE (Minereum). After doing that, he shared his private key in a public chat. Many users rushed to withdraw the coins, believing they had found something important. But no one knew that the operation was based on a specific smart contract.
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