Hackers Deployed More Than 500 Scam Crypto Assets on Coinbase’s Ethereum Layer-2

It has been reported by a crypto surveillance firm that malicious tokens have been placed on Coinbase’s newly launched Ethereum layer-2 chain by black hat developers.

Solidus Labs states that over 500 scam tokens were deployed on Base shortly after the blockchain’s launch for developers on July 13th, before it became available to the public on August 9th.

Out of these scam tokens, about 300 smart contracts contained hidden functions that allowed their creators to mint an unlimited number of new coins, while 70 contracts had obfuscated transaction fee modifiers.

Additionally, more than 60 contracts contained honeypots that prevented buyers from reselling their tokens altogether.

According to Solidus Labs, fraudulent tokens generated approximately $3.7 million in trading volume on Base’s decentralized exchanges (DEXs).

These rogue assets attracted $2.7 million in purchases, $700,000 in sales, and $300,000 in wash sales, which were executed by the scammers themselves.

The perpetrators managed to earn $2 million in profits by removing all liquidity from their DEX pairs after attracting a significant number of users and by creating and selling large quantities of new coins.

In addition, malicious actors placed soft rug pull crypto assets on the network before launch. This type of social engineering attack involves developers hyping up the value of the crypto assets and then withdrawing their funds, leaving existing investors with overwhelming pressure to sell.

The optimal scenario for Bitcoin, according to TechDev, would be a price increase to the two-month super trend level of approximately $50,000, represented by the red line on the chart, followed by a test of support near $30,000 and then a launch into a parabolic movement.

This move will allow Bitcoin’s two-month chart to drop to the support area of the Bollinger bands width (BBW) indicator, a level that signaled the beginning of the 2017 and 2020 bull markets. Traders use the BBW indicator to measure an asset’s volatility.