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Chinese state TV broadcaster raises awareness of DeFi scam on Uniswap

CCTV-13, a television station that is part of the state-controlled China Central Television (CCTV) network, broadcast a new report Today it highlights how easily malicious actors can create fraudulent tokens and sell them on decentralized financial platforms (DeFi) like Uniswap.

“CCTV, China’s largest official television broadcaster, started paying attention to Uniswap and asked the security company to demonstrate how to issue coins on Uniswap and rug pull,” said China-focused crypto journalist Colin Wu.

CCTV, China’s largest official television broadcaster, began promoting Uniswap and asked the security company to demonstrate how to use coins on Uniswap and rug pull. pic.twitter.com/9lnX2PAU7I

– Wu Blockchain (@WuBlockchain) June 2, 2021

In the report, CCTV-13 stated that literally anyone in the DeFi ecosystem can create their own tokens – including those that mimic other projects. As an example, the reporter referred to TRTC, op “Fake Token” that surfaced last November.

Shortly after TRTC launched and started trading, users found that they could no longer sell their tokens after purchasing them. This is because TRTC’s smart contract dictates that only its creator can authorize the sale of the tokens.

Ultimately, the TRTC developers managed to defraud their unsuspecting victims around 59 Ethereum (around 165,000 US dollars at current prices).

Beware of carpet pulling

Such scams, known as rug pulls, usually end up with fake token developers running away with traders’ money after emptying decentralized pools of liquidity, CCTV-13 noted. As an example, an engineer from the blockchain security company SlowMist demonstrated how transactions are organized on Uniswap.

Interestingly, according to “China firewall test“, A website that allows users to check if a page is being blocked by the” Great Firewall of China, “Uniswap and all of its subdomains appear to be inaccessible from within the country. Hence, it is not entirely clear why CCTV-13 reporters and experts decided to use Uniswap as an example.

“Currently, the surveillance of bitcoin mining and trading activity is escalating all the time,” concluded CCTV-13.

As KryptoSlate reported following the Bitcoin mining debacle Hailed from China last week, the country’s state media published several articles and reports describing various risks associated with cryptocurrencies. For example, the Xinhua News Agency raised the Risk of over-indebted Bitcoin trading on Saturday.

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