According to a report by CoinCodeCap, unknown scammers have robbed several people awaiting the launch of the $MASK token with this fake token. The exact number of people who fell victim to this scam is not clear. This token could only be bought, not sold. This was another reason why people became suspicious about the token scam.
Some with knowledge of the tech shared details of their personal investigation on Twitter, revealing that the fake tokens were given a verified state because scammers used DeFi tools site DexTools to do so.
So far, DexTools has not commented on its role in not being able to prevent cybercriminals from abusing its platform.
Code was injected into the title and description of the token on dextools which the website executed, resulting in the token displaying a “verified” status. pic.twitter.com/4jjNmFltZB
— coby.eth (@cobynft) December 27, 2021
Really depressing. Dude tries to ape a coin 7 times upping ante each time. Fails each time. Gets in his entire net worth on the last go. Coin was a fake metamask token. Dextools exploit. Unsellable. What you’re seeing here is a star going out pic.twitter.com/oDQXIVIuST
— Jeremy (@lindyape) December 27, 2021
The incident is being seen as a “vein pull” scam, but some believe it to be a “honeypot” trick by crypto scammers. While honeypot scams target less-informed people, rag pull scams occur when cybercriminals abandon their project after accumulating a target amount of capital.
In a recent report, research firm Chainalysis had revealed that crypto investors were scammed to the tune of over $7.7 billion (about Rs 58,697 crore) this year. The most common form of scam was ‘Rag Pul’, the report said.