Post
Topic
Board Altcoin Discussion
Re: Fake token on swap platform
by
Shallow
on 30/09/2020, 09:04:36 UTC
literately malfunction token. The problem is the token can only 'buy', but can't be sold. There are tricks in the selling code that only the owner (scammer) can sell. Outside people can only buy but never sell successfully. The scammers create the pairing pool using their token, then buy it to create an up-shooting curve. They will come back later to collect all ETHs leaving the garbage tokens stuck in tricked buyer's account.   

This is a nice analysis, and funny enough it will likely happen again and again, as most people only tends to look at the massive growth a coin is having and nothing more.
When it comes to scamming, the developers or the team can go any length just to make sure they succeed, this has always been the way it works. Which is why, most projects will have a successful token sale, get listed, have a few pumps and then exit scam. Now those on swap platforms, owing to the fact trading is decentralized, will also give the scammers upper edge to play around their smart contracts just to achieve their aim of scamming. So from all these, it still remains that, studying whichever project you want to participate in is very important, knowing what the team are up to, their ideas is still a good way to start. Also, when the pump gets overwhelming, you can consider taking your profit while watching to see if truly it is legit or not because most times, when most of these new tokens pumps massively, the dump that follows is also heartbreaking.