CCTV-13, China’s largest official TV station, highlighting the high-risk of fraudulent tokens on DeFi platforms such as Uniswap
According to Wu Blockchain, China’s largest official TV station, CCTV began to pay attention to Uniswap and asked the security company to demonstrate how to issue coins on Uniswap and rug pull.
CCTV, China’s largest official TV station, began to pay attention to Uniswap and asked the security company to demonstrate how to issue coins on Uniswap and rug pull. pic.twitter.com/9lnX2PAU7I
— Wu Blockchain (@WuBlockchain) June 2, 2021
Chinese state-run TV network draws attention to DeFi scams on Uniswap
According to China Firewall Test, a website that allows users to check if a site is blocked by the “Great Firewall of China”, Uniswap and all its subdomains appear to be inaccessible from within the country. So it’s not entirely clear why CCTV-13 reporters and experts decided to use Uniswap as an example.
CCTV-13 is a television channel under the state-controlled China Central Television (CCTV) network. They recently aired a new report today, highlighting how the bad guys can easily generate scam tokens and sell them on decentralized finance (DeFi) platforms such as Uniswap.
Following that, CCTV-13 explains that literally, anyone can create their own token – including those mimicking other projects – within the DeFi ecosystem. For example, the reporter pointed out TRTC, a fake token that appeared last November.
Shortly after TRTC launched and its trading started, users discovered that they could not actually sell their tokens after purchasing them. This is because the TRTC smart contract stipulates that only its creator can authorize the token sale. In the end, the TRTC developers scammed around 59 ETH (about $165,000 at current prices) from their unsuspecting victims.
Such frauds, known as “rug pulls”, often end up with fake token developers fleeing with traders’ funds after emptying decentralized liquidity pools. As an example, an engineer from blockchain security firm SlowMist demonstrated how transactions are organized on Uniswap.
CCTV-13 concluded:
“At present, the supervision of Bitcoin mining and trading activities is constantly escalating.”
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