Fraudsters are Now Focusing on Uniswap DeFi! Here's What You Need to Do to Avoid These Scammers
(Photo : Photo by Sean Gallup/Getty Images) BERLIN, GERMANY - DECEMBER 28: A participant sits with a laptop computer as he attends the annual Chaos Communication Congress of the Chaos Computer Club at the Berlin Congress Center on December 28, 2010 in Berlin, Germany. The Chaos Computer Club is Europe's biggest network of computer hackers and its annual congress draws up to 3,000 participants.
Fraudsters are Now Focusing on Uniswap DeFi! Here's What You Need to Do to Avoid These Scammers
(Photo : Photo by Patrick Lux/Getty Images) HAMBURG, GERMANY - DECEMBER 28: Participant hold their laptops in front of an illuminated wall at the annual Chaos Computer Club (CCC) computer hackers' congress, called 29C3, on December 28, 2012 in Hamburg, Germany. The 29th Chaos Communication Congress (29C3) attracts hundreds of participants worldwide annually to engage in workshops and lectures discussing the role of technology in society and its future.

DeFi projects are currently becoming more and more popular, especially since there was a huge growth seen in the crypto industry way back in 2020. Right now, there are more than 1,000 DeFi tokens circulating in the crypto markets.

Fraudsters are Now Focusing on Uniswap DeFi! Here's What You Need to Do to Avoid These Scammers
(Photo : Photo by Patrick Lux/Getty Images)
HAMBURG, GERMANY - DECEMBER 28: Participant hold their laptops in front of an illuminated wall at the annual Chaos Computer Club (CCC) computer hackers' congress, called 29C3, on December 28, 2012 in Hamburg, Germany. The 29th Chaos Communication Congress (29C3) attracts hundreds of participants worldwide annually to engage in workshops and lectures discussing the role of technology in society and its future.

This massive growth leads to more than a $34.86 billion total market cap in the crypto industry. Because of the rising crypto market, even Uniswap is now becoming more popular than ever.

The companies' tokens currently cover various sectors within the markets. These include exchanges, lending, derivatives markets, payments, assets, and more. Investors are charging to enter the two companies since their value is currently growing.

However, security researchers discovered that scammers, fraudsters, and other malicious actors are now targeting the companies' consumers. If you are one of them, here's how you can avoid them.

Avoiding Uniswap scams

Academy Binance explained that Uniswap is a set of computer programs that are created to allow decentralized token swaps in the crypto world. DeFi also has the same goal. 
However, it is currently dangerous to buy their tokens since scammers and fraudsters are currently finding ways on how to fool people into buying fake tokens.

Fraudsters are Now Focusing on Uniswap DeFi! Here's What You Need to Do to Avoid These Scammers
(Photo : Photo by Sean Gallup/Getty Images)
BERLIN, GERMANY - DECEMBER 28: A participant sits with a laptop computer as he attends the annual Chaos Communication Congress of the Chaos Computer Club at the Berlin Congress Center on December 28, 2010 in Berlin, Germany. The Chaos Computer Club is Europe's biggest network of computer hackers and its annual congress draws up to 3,000 participants.

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According to Hacker Noon's latest report, you should check the distribution and liquidity locked for a DeFi token. This means that consumers must always check that the distributor does not hold the highest value of the tokens in the market before purchasing them.

You also need to observe if the company is anonymous. Although most token sellers or distributors are usually anonymous regarding privacy and decentralization, it is still important to know how many consumers they have, as well as their backgrounds.

Avoiding DeFi scams

To avoid DeFi scams, you also need to do the methods or tricks mentioned above. There are various types of DeFi scams. These include exit scams, rug pull scams, and more. If you are familiar with them, it is still hard to avoid these scams since they are hard to tell from the real thing. One of the things you can do is always check if the distributor published its "white paper" since this is commonly seen in legitimate companies. The white paper contains the project's goals, projects, and offered services, as well as its background. You can click here if you want to know more tips.

For more news updates about guides on how to avoid scams, always keep your tabs open here at TechTimes.

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Written by: Giuliano de Leon.

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