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Report claims that 97% of Uniswap tokens are Scams

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2 months ago

Hey Peeps!

 

report, that recently made the rounds on Twitter, claims that about 97% of tokens launched on Uniswap are either scams or malicious. 

This report was written in January 2022, and published within the Multidisciplinary Digital Publishing Institute in March of 2022. 

Approximately 27,000 tokens were analyzed by the researchers, and they determined that just 631 were non-malicious. 

 

"To do this, we collected all Uniswap data until 03/09/2021 by directly interacting with the Ethereum blockchain. Then, we labelled different tokens as scam, malicious and non-malicious tokens using various relevant features of the smart contract and the liquidity pool state. We manually observed different ways of executing the rug pull, proposed a rug pull classification, and observed new complex forms of performing the theft. Moreover, we have observed a further usage of the Uniswap protocol to send ETH 2 unnoticed for most common tracking protocols. Finally, we propose new features of tokens, liquidity pools, and the transaction graphs; and a new framework to predict the probability of a liquidity pool becoming a rug pull or a scam in the future." - Bruno MazzaraVictor Adan, and Vanesa Daza (via their Report)

 

Twitter went a little wild with this news, but Mark Zeller (VP of the DeFi committee at L’Adan), chimed in with a different viewpoint. 

He compared this situation to France and how they allow companies to be created with just €1. 

Even though this allows for bad actors to launch companies, it also allows for truly amazing and revolutionary companies to be created and brought to market. 

 

"less friction and lowering requirements have drawbacks. but I side with liberty, accepting the personal responsibility of risks." - Mark Zeller

 

I tend to agree with Mark Zeller, as I believe that each individual has a responsibility to themselves to do their own research and make their own decisions.

In my opinion, this freedom significantly outweighs the inherent risks.

 

How has your experience been on Uniswap?

Have you ever been scammed?

See ya!

:)

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