Binance calls 50 potentially dangerous crypto projects

Some coins mimic the Dogecoin meme cryptocurrency by using other animals as their mascot

16.08.2022 - 07:30

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What’s new? The BNB Chain network, created by crypto exchange Binance, marked 50 potentially dangerous projects with “red flags” using its Red Alarm platform. Most of the coins on the list mimic the meme cryptocurrency Dogecoin (DOGE) by using other animals such as a panda or koala or even cyborgs as a mascot. Red Alarm was launched in July by the exchange in conjunction with Dappbay, a DeFi protocol. The service helps users assess a project’s risks by analyzing its code.

Red Alarm’s list of potentially dangerous projects

What else is known about Red Alarm? The system flags projects based on two main criteria: the difference between the smart contract mechanism from the features declared by the project developers and the risks in the code that could affect users’ assets.

Speaking to Cointelegraph, Gwendolyn Regina, investment director at BNB Chain, said that the system analyzed 3300 contracts in July. She also added that the company continues to develop additional measures to identify fraudulent practices in the ecosystem.

New projects that have not been tested and that lack original products are also flagged by the system as dangerous.

In March, crypto exchange Coinbase unveiled a similar label system. The platform began highlighting risky assets and marking them with special flags. The label itself has no effect on the token’s functionality in any way but only signals the danger of the asset.

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