Cryptocurrency trading has taken a new shape globally with traders opting for Decentralized Exchange (DEX) over Centralized Exchange (CEX) — because of the self-custodial feature the former affords users.
DEXes allow people to control their token deposit, use, and withdrawal without external institutional and government interference and most importantly, fulfill one of the objectives for the creation of cryptocurrency — to allow for a decentralized, anonymous use and custody of money domestically and internationally.
The negative implication of DEX is that scammers have now leveraged on its decentralization and anonymity to scam people. Oftentimes, an individual or a team may design fake airdrop and giveaway tokens and issue to traders who may be required to scan and grant permission to their wallets to receive the token.
The need to protect our users necessitated the creation of the Token Security Detection Function. This is a new tool in our platform that allows users to check the security of tokens before opting to buy them. The newly launched token detection tool in collaboration with GoPlus will assist to eliminate crypto scams.
Now, the common forms of the crypto scams were creatively addressed by the Token Security Detection Function, to amongst other things verify token addresses and prevent other harmful practices. In doing this, the newly introduced function combines a number of tools to achieve an optimum result. Here is a brief rundown on the security detection components:
➢ Verify token airdrop scam: the security function is built to control and detect fake airdrops and giveaways that may contain malicious links or grant permission into a user’s wallet.
➢ Verify fake token scam: the honeypot token tool detects and shows tokens that cannot be sold when they are bought.
➢ Verify that the contract is open source: the crypto community hopes to achieve an open source regime to ensure full decentralization of transactions and public accessibility of data. The security function checks the open source status of a token to ensure the creators have a verified token address.
➢ Verify token security: the function uses a proxy contract and additional issuance tools to verify the token security. Where the additional function tool detects external links or contracts bound to the token contract, it means that the token is not safe for buying. On the proxy contract tool, the contract may have additional extensions that have other issuance functions — and this is considered to be dangerous.
➢ Verify that the token can be sold: the tool combines the blacklist and ant-whale tools to ensure that the tokens can be sold in the open market. Where a token appears under the anti-whale function, it means that there is a tendency for a person or single entity to buy the token in bulk and maintain full control over the price. The anti-whale function prevents this. The blacklist function detects, collates, and shows addresses that cannot sell tokens. It helps to prevent fake token scams.
To use the security token detection function, follow these simple step-by-step guides:
Please note: that our platform currently supports Arbitrum, Cronos, Polygon, Avalanche, Ethereum, Heco, OKC, Fantom, Harmony, and BSC.
Also note: that you need to get familiar with the following terms on the token security that displays after clicking “check”
In conclusion, since these new token security detection functions have been introduced, TokenPocket users can verify the token contract and get away from the fake token scam.