Tokens randomly dropped to wallets. Token value in wallets show a massive USD exchange rate (fake, tokens are worthless). The airdrops and the shown value incentivize the wallet owners to (1) visit fake websites and connect their wallets to exchange the tokens, (2) fill in KYC form to unlock tokens or (3) pay a fee to unlock tokens.
Investors should check the contract address of a token before buying it on a decentralized exchange to avoid buying a fake one.
M07
Check token in blockchain explorer
Investors should search for the token they want to buy in the corresponding blockchain explorer (e.g. https://etherscan.io/, https://explorer.solana.com/).
M08
Check token blacklists
Investors should check blacklists of tokens before buying a new and unknown token (e.g., DappRadar blacklist).
M09
Check token liquidity
Investors should check the liquidity in the balance pool of a token before buying it (e.g., on Uniswap V2 or 1INCH).
