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04/09/24
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Scammers Exploit Solana’s Token Features to Burn Users’ Crypto Holdings
Recent reports have emerged highlighting a disturbing new tactic employed by scammers targeting Solana users. By utilizing a built-in token extension feature, these fraudsters can stealthily burn tokens from victims’ wallets, effectively erasing their crypto holdings without the owners’ consent.
A recurring incident within the Solana community involved a user who had exchanged for a token, only to find their wallet empty shortly thereafter. The mechanism behind this scam is tied to the “Permanent Delegate” feature in Solana’s Token 2022 standard. This tool grants wide-ranging privileges that allow for the burning or transferring of tokens without restrictions. Although this functionality is intended for legitimate use cases, such as retrieving misdirected tokens or complying with sanctions, its potential for abuse is significant and has been acknowledged by Solana itself.
Scammers appear to have various motives for burning tokens. One possible reason is a desire to create chaos and disrupt the market. Additionally, by reducing the available supply of a token, scammers could manipulate its price, making it challenging for legitimate holders to sell. Reports indicate that some scammers, focusing on numerous small profits rather than large sums, are experimenting with this method to generate notable income over time.
Security experts have weighed in, suggesting that these tactics could manipulate tokenomics, thereby affecting the circulating supply and market behavior of crypto assets. This strategy can mislead users into believing the supply of a token remains stable, ultimately allowing scammers to profit from related DeFi protocols.
As incidents of this nature continue to rise, the importance of due diligence cannot be overstated. Users are encouraged to remain vigilant, develop a consistent routine when dealing with tokens, and take the time to thoroughly review all details associated with swaps. As the crypto landscape evolves, awareness and caution are essential to avoid falling victim to such scams.
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