How To Trade Bitcoin: Uniswap Scams To Know About
Did you know that 1 in 10 Americans have invested in cryptocurrency? With the growth of crypto comes a new wave of online fraud, from fake bitcoin to Uniswap scams. If you’re new to this industry, it’s essential to educate yourself on cryptocurrency scams. This way, you can protect yourself and your investments.
There are several crypto exchange platforms targeted by scammers. One of them is Uniswap. If you’re a Uniswap user, this article will help you avoid several crypto scams.
Here are 7 Uniswap scams to avoid:
1. Fake Tokens
As a result of the decentralized design of cryptocurrency, it’s easy to list new tokens for free. This means it’s no challenge for scammers to list copycat tokens. Scammers find a new, legitimate token that hasn’t yet been listed. They then create a similar listing, copying aspects of the legitimate token.
Piggybacking on the pre-existing branding, scammers trick users into buying their fake tokens. This leaves users with a worthless investment while the scammer takes the proceeds.
2. Swap Manipulation
One of the latest crypto scams is manipulating the Uniswap ‘swap’ feature. How does that happen? It allows users to target a recipient directly.
They can use this feature to send tokens to influencers. Making it look like the influencer is investing in a particular token can increase the valuation of a fake token. It makes it more appealing to investors.
3. Fake Contracts
Cryptocurrency contracts enforce financial agreements. One of the more advanced scams in crypto is fake contracts.
These are fraudulent contracts made to look legitimate. They are used, in part, to make forced ‘swap’ transactions look real. Fake agreements are also used to create illegitimate trading reports.
With the Uniswap price increasing in value, it’s a popular place for scammers to build fake projects. Scammers launch a new project and sell tokens for a super low cost. Early investors buy vast amounts of tokens, luring others in.
Eventually, the early investors cash out after the tokens have increased in value. They take their profits and leave the project to fail. The project token price depreciates, leaving late investors without profit. This makes their investment worthless. This trick is one of the most prevalent Uniswap scams.
5. Exit Scams
Exit scams are similar to rug-pulls. Instead of early investors targetting late comers, scammers target all investors. Like rug-pulls, they do this with a fake project. Once confidence in the fake project is created, scammers exit with the investor’s funds.
6. Meme Coin Scams
There are over 120 meme coins available on crypto exchanges. And scammers have begun to take advantage of people’s enjoyment of novelty tokens. They are similar to fake tokens but are essentially legitimate. The scam comes in the marketing. Scammers promise exponential and guaranteed returns.
It’s rare to see these promised returns become a reality.
7. Flash Loan Attack
One last crypto scam to look out for is flash loan attacks. This is where scammers take out a flash loan and use it to manipulate the value of a token. If there’s a flash loan attack on a market you’ve invested in, you could see your token value crash.
After reading this guide, you should know what Uniswap scams to look for. With scams in crypto increasing by up to 1000%, it’s important to stay vigilant.
If you feel a bitcoin website might be suspicious, feel free to verify it using our unique Scam Detector website validator below:
Uniswap Scams: How To Report Them
Let your family and online friends know about these Uniswap scams by sharing the article on your social media. You can also report crypto scammers and any other bitcoin suspicious activity to the Federal Trade Commission using this link below:
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Meanwhile, educate yourself with some other crypto fraud-related articles right under this paragraph, so that you know how to stay safe online. Last but not least, use the comments section below to expose other bitcoin scammers.
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