Fake tokens still plague Uniswap

Fake currencies continue to plague the decentralized Uniswap exchange, as prominent crypto projects associated with upcoming token sales are reporting imitators trading on the platform.

On August 19, Teller Finance, the upcoming decentralized finance (DeFi) lending protocol, tweeted that they had created a fake Teller and Uniswap token pool.

„Teller Labs has made no official Bitcoin Era announcement about any potential, planned or upcoming token releases.

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The long-awaited sale of NEAR Protocol tokens was also the subject of phishing scams in the run-up to its launch last week, and they tweeted the following regarding any NEAR Protocol tokens that were not officially authorized:

„The only place for official NEAR tokens is near.org/tokens. Any NEARs currently for sale at locations not listed there are not officially authorized by the NEAR Foundation and participating puts you at serious risk“.

Cointelegraph has identified two tokens that are posing as NEAR and have been traded at Uniswap in recent weeks.

Acala Network also encountered scammers prior to the sale of its tokens, and the project website currently hosts a banner that says „no official public sale of Acala tokens“ and asks community members to inform the team about impersonation scams. However, Cointelegraph has not identified any fraudulent Acala tokens with Uniswap trading.

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Fraudulent tokens target Uniswap merchants
Unlike centralized platforms, Uniswap does not maintain any listing rules or criteria, which means that anyone can include an ERC-20 token in the exchange.

The crypto market data aggregator, CoinMarketCap, currently lists Uniswap as hosting over 400 active pairs and over 300 markets that the platform has not yet verified.

Ethereum founder Vitalik Buterin this week shared a Cointelegrap article on the prevalence of fake tokens at Uniswap and advocated the establishment of „decentralized reputation systems“ to mitigate risk:

The filtering and quality control functions performed by centralized services are essential, but it is very dangerous for centralized agents to drown in these functions. We need to do more work on decentralized reputation systems to try to get the best of both worlds.

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The Kleros dispute resolution protocol believes that its cured token registry can solve the problem of fraudulent tokens, since its registry includes tokens that are not associated with malicious addresses and offers badges that indicate that the coins have undergone a background check.

Kleros has also launched a Uniswap front-end that prevents users from exchanging tokens that the project has not verified.