Tokens get Rugged on Uniswap
Uniswap, a simple smart contract interface for swapping ERC20 tokens gripped everyone’s attention by listing nearly 1000 token pairs in just a month. On an average 150 trading pairs get listed every day and a record of 221 pairs had been listed on 06 September 2020.
Uniswap currently supports 8,278 trading pairs and the prime focus currently fell on the tokens that got scrapped within hours. An anonymous crypto analyst fomosaurus, recently put out a tweet which said that
“35% of the projects listed on Uniswap in the last 6 hours have all been rugged,”4
Tokens like Dak, KKK, etc got scrapped within 2-3 hours of listing. In fact, some of the tokens had some growth in their price, however, the total number of holders remained under 20.
Who is responsible?
Numerous coins get listed on the exchanges every day having a detailed whitepaper. However, to cross-check the legitimacy of the token is the prime liability of the exchange. The exchange needs to check whether the tokens listed on their platform are not any Ponzi schemes that could drain out users funds.
On the contrary, the investors or the traders also need to DYOR before investing in any token. Therefore it’s imminent for the exchange to set some criteria to get listed as its pretty easy job to get listed on uniswap as one of the users said.
Interesting Read: Tron’s Defi Protocol Expected To Outperform Ethereum’s Uniswap Very Soon