The Binance Smart Chain (BSC) is a newly launched blockchain ecosystem by the Binance team that acts as an ecosystem for other tokens. The new blockchain is laced with smart contracts and said to offer the users a very small transaction fee. The benefit of this fee concession is that anyone can create a token and start trading with it.
The biggest complaint about the share market and the crypto market has been that it makes rich people richer. However, the decentralized token system might bring down the status quo. On one side, it is giving people a chance to better their lifestyle. On the other hand, it is also posing a threat for investors. In a market where anyone can create a token, it seems very difficult to determine which projects are trustworthy. Due to the low fees of Binance, many scammers seem to misuse this platform.
How do the BSC Scams work?
When it comes to investing money in BSC token projects, it is all about legitimacy and reliability. The first rule is to conduct a little research and find out what the others are saying about the evaluation of the new project. Talk around in the local community and try to understand that what types of investors trust this new DeFi project. The older a token project gets, the more it becomes reliable.
It is also a good idea to check if there are signs of copying or any other structural lacking to make sure that the project is trouble-free. BSC has managed to get a Total Locked Value (TLV) of $43 billion in just six months. This speed shows the excellent potential and performance of the BSC projects. Nevertheless, some recent incidents like MeerKat Finance, PopcornSwap, Zap Finance, Tin Finance, and TurtleDex, among others, are enough to warn the users.
Reddit Community Mocks the Scammer who Conned Himself
The Reddit community is busy trolling a new scammer trying to start a copied token campaign and losing his own money in the process. The scammer copied and introduced a new token by the name of PI coin. He was trying to take advantage of the already strong following of the said coin and scam the new investors by posing with the same name.
However, it seems like the Binance safeguard trigger stopped the scammer from withdrawing his initial investment as it would significantly impact the price of the coin. In the end, the scammer ended up getting shunned on Reddit and deleted his subreddits. There are many successful token projects on the Binance Smart Chain. It is also true that for every 100 legitimate opportunities, there is one scam project that the users should try to avoid.