More and more scams: Uniswap implements warning against fraudsters

Uniswap is a decentralized exchange that is mostly used for trading with smaller and newer projects. Unfortunately, more and more fraudsters are hiding among them. They use the anonymity of the stock exchange to skilfully pull investors' money out of their pockets. Uniswap now wants to act against this method and protect investors.

More and more fraudsters are listing scam tokens on Uniswap

Decentralized exchanges are becoming increasingly popular, especially the current hype about DeFi applications, which causes many small projects, is helping the DEX to increase trading volume. Unfortunately, not all projects are serious. As you already know from the big ICO boom in 2017, fraudsters use their chance again to benefit from the DeFi hype.

Uniswap is one of these decentralized exchanges. It enables investors to exchange Ethereum-based cryptocurrencies without a middleman. This is made possible by the provision of liquidity. Anyone who has the necessary knowledge about ERC-20 tokens can list them on Uniswap. And that is exactly why more and more scam tokens are available on Uniswap.

You now want to take action against these fraudsters with a warning. Uniswap implemented a warning a few days ago as soon as you open the overview page of a token:

Anyone can create and name any ERC20 token on Ethereum, including creating fake versions of existing tokens and tokens that purport to represent projects that do not have a token. Similar to Etherscan, this website automatically tracks analytics for all ERC20 tokens regardless of token integrity. Please do your own research before interacting with an ERC20 token.

The notice is intended to protect investors from investing in scam projects. Those who copy the name and abbreviation of a reputable currency are particularly dangerous. Investors can protect themselves by checking the cryptocurrency contract address on Etherscan.

Uniswap achieves record trading volume

However, the increasing number of fraud projects should not harm Uniswap's reputation. The decentralized exchange broke a new record in nearly 25 hours with almost $ 24 million in volume traded. This is partly due to the increasing popularity of DeFi projects.

Because among the top 5 most traded cryptocurrencies are four from the area of ​​decentralized applications: Bäumenwap (SWAP), Synthetix Network Token (SNX), Ampleforth (AMPL), USD Coin (USD) and DMM: Governance (DMG).

But it is not only Uniswap that has seen strong growth in the decentralized stock market. As we reported a few days ago, almost all DEXs have an increasing trading volume:

DeFi hype: trading volume on decentralized exchanges reaches all-time high


Markus from
Photo credit: | CC0