A brief article:
· A new token generator dAapp allows anyone with enough ETH to start a new token without writing code.
· This allows scammers to easily create new tokens and add them to the DEX liquidity pool.
· It is important to thoroughly study a project before investing.
A platform called SmartContracts Tools has a token generator dApp that creates a new Ethereum or BNB crypto token in one minute.
dApp exists on the Ethereum, BSC and Polygon networks and uses unique smart contracts to help users build their own tokens.
How to create a new token using SmartContracts
The platform requires you to connect your MetaMask wallet with enough ETH, MATIC or BNB to pay for the contract deployment fee to start the token. The token may have optional features such as supply caps, deflation properties, and the ability to burn or mint.
user must specify the token type and the blockchain to which it will be deployed. They can choose the ERC20 token type for Ethereum and Polygon, or BEP20 for Binance Smart Chain.
Source: SmartContracts Tools
If users choose Ethereum, they can deploy their tokens on the mainnet, Goerli, or Sepolia test network.
Source: SmartContracts Tools
Users must also enter the required token name and symbol.
Source: SmartContracts Tools
They can choose the initial supply of tokens, and whether this will be fixed, unlimited or upper-limited supply. Additionally, they can choose who can access the token. If the user has their own access, they can start and end the token's minting process or set their burn rate (if applicable). The token can also have a specific role that its owner can use Admin or Minter.
After you fill in all fields correctly, you can click "Create Token".
Source: SmartContracts Tools
After this, you will create an available ERC20 token whose smart contract code has been verified.
As of press time, the token generator application has generated over 30,000 custom tokens.
SmartContracts tool provides support for scammers
Token Generator and other tools allow scammers to easily create new tokens and register on decentralized exchanges such as Uniswap.
Decentralized exchange allows anyone to initiate a new market smart contract that can hold funds and control how funds are used. DEX automates the market for them.
Users can deposit newly generated tokens with well-known tokens such as ETH into a specific type of contract, called Hengji AMM. The constant product AMM ensures that the product of the number of tokens in the liquidity pool is constant. If the user deposits 10 NEWTOKEN and 10 ETH, the constant product is 100. If anyone wants to buy 5 NEWTOKENs, there are 5 NEWTOKENs in the pool. To keep the product unchanged, AMM will now offer the buyer 2 ETH for each NEWTOKEN. As more and more people buy NEWTOKEN, it becomes more and more expensive. When the price is high enough, the scam will extract NEWTOKEN from the liquidity pool and disappear.
The famous scams in recent history include the Animoon scam, a money-making game that costs investors $6.3 million. It customizes Pokemon-like irreplaceable tokens around investors. The company had promised to pay dividends to NFT holders, but disappeared for $6.3 million. Founder uses famous liar Jack Paul to promote the project. Azuki NFT founder Zagabond was charged with scam after profiting from three failed NFT projects.
How to prevent fraud
Many scammers take advantage of investors' fear of missing out. They often use social media feeds and marketing bots to adopt dazzling marketing plans for new tokens.They will also impersonate influencers in the cryptocurrency space to improve their publicity. These include the well-known Bitcoin bull Micahel Saylor, Ethereum co-founder Vitalik Buterin and Ripple CEO Brad Garlinghouse.
But it is best to thoroughly study the token, its founder, history and white paper before investing. The existence of the project roadmap is a good indicator that the project will last for a while. If you discover new tokens on a centralized exchange, this is a good sign. These exchanges will usually thoroughly review any token or coin before listing them. In addition, any legal token or coin usually has a large number of bets on the network. Companies such as
Rug Pull Finder and RugDoc also help clear fraudulent encryption solutions.
Source of this article: Beincrypto Original author: David Thomas Editor-in-chief: Seven
