54% of tokens issued on the Ethereum network in 2023 and traded on decentralized platforms belong to fraudulent Pump & Dump schemes, Chainalysis service analysts announced.
Of the total supply of 370,000 tokens on Ethereum, 168,600 are available for trading on decentralized exchanges Uniswap, PancakeSwap, SushiSwap, 1Inch, dYDX and others. Of these 168,600, approximately 90,408 tokens are consistent with the characteristics of a pump and dump scheme (24.4% of the total token supply on Ethereum and 53.6% of assets on decentralized sites).
Analysts insist: fraudulent tokens are issued by the same individuals who are developing many fake cryptocurrency projects at once.. Chainalysis calculated that the organizers of Pump & Dump schemes received $241.6 million in profit last year.
Chainalysis specialists, for example, identified a wallet that issued 81 tokens and received a profit of more than $800,000. The attacker carried out multiple fictitious transactions, and then withdrew ether from the trading pool on a decentralized exchange. And other traders were unable to exit positions and suffered losses.
Earlier, Vitalik Buterin presented a strategy that will improve the mechanism for placing bets on the Ethereum network and the overall performance of the entire blockchain.