BNB Chain is the leader in the number of scams
The rapid development of the Binance Smart Chain (BSC) blockchain offers a convenient ecosystem for financial activities, yet it's plagued by increasing incidents of fraud. The most prevalent scam, known as "rug pull," involves luring investors to a liquidity pool, only to drain it and leave investors with worthless tokens. Shockingly, the number of such cases skyrocketed from 1,541 in 2020 to over 100,000 in 2022.
Scammers continuously devise new schemes, with BNB Chain being a hotbed for fraudulent activities, constituting around 12% of tokens on the network. Alarmingly, approximately 15 fraudulent projects emerge every hour across various networks. Cryptocurrency scams now top the list of complaints received by authorities, with the UK Financial Conduct Authority reporting a 36% increase in crypto-related complaints. Most victims invest before recognizing the fraud, leaving them vulnerable.
Regulators warn against blindly trusting crypto influencers, stressing the inability to recover funds in case of fraud. With 432 investigations initiated and a surge in complaints, vigilance is crucial in navigating the treacherous landscape of cryptocurrency investments.