As a seasoned crypto investor with battle-hardened instincts honed over years of navigating the digital frontier, I can’t help but feel a sense of unease when reading about these Solana scams. It seems like every time we think we’ve seen it all, new tricks emerge from the shadows.
Scam projects are issuing tokens on Solana only to burn them as soon as users buy them.
Recently, scammers have been causing trouble in the cryptocurrency market, particularly targeting users on the Solana blockchain. A number of users have noticed their tokens mysteriously vanishing with no apparent cause. Importantly, these users have neither authorized any transactions nor clicked on suspicious links
It’s surprising, yet frequently reported by token holders in projects associated with Solana, and there seems to be a reason behind it. A member of Solana-based Jupiter protocol’s core team, Slorg, recently shared insights on this issue through X. They explained that scammers have discovered a method to destroy tokens within your Solana wallet. Upon investigation by the Moderation Staff, an interesting detail emerged on the Solscan page: There was a burn transaction, which occurred just 7 seconds after the user received the tokens
The ‘Permanent Delegate’ feature, introduced by Solana in 2022 for the purpose of allowing projects to recover accidentally transferred tokens or those linked to illegal activities to meet regulatory requirements, was the reason explained for this occurrence. However, as seen in recent instances, this functionality can potentially be exploited
Scammers Have Their Reasons Despite Burning Tokens Seeming Illogical
Essentially, burning tokens doesn’t benefit fraudulent projects in any tangible manner. The tokens vanish without a trace, meaning that those who create these tokens receive no benefits. A popular speculation within the crypto community is that some scammers derive pleasure from causing destruction. With platforms like Pump.fun making token issuance on Solana simple, they establish projects to sell tokens and instantly burn them as a prank on buyers. Another hypothesis suggests that scammers could be doing this to swiftly decrease the supply of tokens, thereby escalating their prices. In such a scenario, they stand to gain more when they abandon these projects entirely, leaving token holders to experience a ‘rug pull’
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2024-09-05 23:12