Uniswap Rugpulls Are Everywhere

The rugpulls of micro-cap tokens and meme coins on Uniswap are higher than 97%. A 2022 report shows that the plight of users and smaller tokens are not confined just to BNB Chain, as is widely perceived.

The evidence from an in-depth 2022 report by Catalan researchers from Universitat Barcelona and Universitat Pompeu Fabra reviewed nearly 30,000 coins that emerged during the recent bull run between May 2020 and September 2021. The report found that a staggering 26,957 tokens, out of a total of 27,588 tokens researched, were rugpulls. The report further showed that 90% of locked smart contracts eventually turned into rugpulls as well.

“We provided a theoretical classification to understand the different ways of executing the scam, and through the process of identifying rugpulls, we found new token smart contract vulnerabilities (composability attacks) and new ways of money laundering,” according to the report’s conclusion. “Not surprisingly, we found that more than the [sic] 97.7% of the tokens labelled were rugpulls.”

In its role as a decentralized exchange, Uniswap is not responsible for deep analysis of projects launched. The report is a reminder to “Do Your Own Research” and steer clear of projects with notable red flags. It’s a near guarantee that, based on the evidence shown, a project encountered on UniSwap will be a rugpull.

For a full review of the report, please check here.

For help on how to assess rugpulls and exploits, please see several education articles by the BSC News team for guidance.

• What Are Liquidity Siphon Rugpulls on BNB Chain?
• Crypto Scams and How to Avoid Them
• How to Keep Your Funds Safe on BNB Chain
• What are Pyramid and Ponzi Schemes
• How to Use BscScan to Check Token Approvals
• How You Can Spot and Avoid 'Pig Butchering' Scams
• What are Flash Loans in Cryptocurrency
• How DeFi Farming Works and Where Yield Comes From