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BNB Chain: The King of Rug Pulls in Q1

If you are a , you may have heard of the term rug pull, a type of scam where developers raise funds and then close up shop without delivering a product or service. This can leave investors with worthless and no recourse. 😱

According to a report by firm Immunefi, BNB Chain was the king of rug pulls in the first quarter of 2023, with over 73.3% of such in the entire crypto happening on the network. 😲

Why BNB Chain?

BNB Chain is a blockchain network that runs on Binance Coin (BNB), the native of the popular Binance. BNB Chain aims to provide fast, cheap, and scalable for () and (DeFi) protocols. 🚀

However, BNB Chain also has some drawbacks that make it vulnerable to rug pulls and other frauds. One of them is the lack of security audits and code reviews for many on the chain. Immunefi tech Lead Adrian Hetman speculated that the large number of rug pulls on BNB Chain may be due to a that promotes forking code: 🤔

“BNB Chain still has a serious issue with developers using forked code. Its lacks a security-first approach and attracts many looking for a quick way to earn . That's why we continue to see the biggest number of exploits and rug pulls in this ecosystem.”

How to Avoid Rug Pulls?

Rug pulls and other frauds are not only a problem on BNB Chain, but on any blockchain network that supports DApps and . Therefore, it is important for crypto investors to do their due diligence before in any project. Here are some tips to help you avoid rug pulls: 🙌

  • Research the project's team, , , and presence. Look for signs of credibility, transparency, and professionalism.
  • Check if the project's have been audited by a reputable security firm or verified by an independent source.
  • Look for reviews and feedback from other users and experts on platforms like , , Telegram, or Discord.
  • Be wary of projects that offer unrealistic returns, have anonymous developers, or have no clear use case or proposition.
  • Do not invest more than you can afford to lose, and diversify your across different projects and platforms.
The Bottom Line

BNB Chain was the king of rug pulls in Q1 2023, with over 73.3% of such scams in the entire happening on the network. This shows that BNB Chain still has some security issues that need to be addressed by its developers . 😕

However, rug pulls are not exclusive to BNB Chain, and can happen on any blockchain network that supports DApps and DeFi protocols. Therefore, crypto investors need to be careful and do their research before in any project. 😎

I hope you found this article helpful and informative. If you have any questions or comments, please feel free to leave them below. And if you want to learn more about BNB Chain rug pull or other crypto topics, you can always ask me for more articles or suggestions. 😊

Lauren Jones

By Lauren Jones

Hi, I’m Lauren Jones, a writer at avangernews.com. I love to write about health, wellness, and lifestyle. I’m always looking for new ways to improve my well-being and happiness, and I enjoy sharing my tips and advice with my readers. I have a degree in psychology from the University of Michigan, and I have worked as a health coach and a blogger before joining avangernews.com. When I’m not writing, I like to practice yoga, meditate, and cook healthy meals. You can follow me on Instagram @lauren_jones or email me at lauren@avangernews.com.

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