New coins, tokens or NFTs can be created easily and by almost anyone with a bit of technical knowledge. Malicious actors can then choose a name for the created asset that closely resembles a reputable one.
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).
