- Ethereum, News

Fake ETH Tokens Netted $53,000 In Less Than An Hour: Report

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Fake ETH tokens managed to net $53,000 in about 30 minutes as per the latest reports that we have in our ethereum news today.

Scammers launched an Ethereum token just so they can use its popularity of the new product that is released by the Yearn Finance founder Andre Cronje. Cronje’s latest announcement for a project got scammers interested in issuing a fake “DWAP” tokens. These fake ETH tokens brought $53,000 to an unknown scammer in less than 30 minutes. More than 30 fake DWAP tokens were since issued. When Yearn. finance creator Cronje tweeted about the new credit lending and loans product Deriswap, scammers hurries to ride out the popularity which is how one scammer managed to make $53,000 in less than 30 minutes.

Cronje is seen in the crypto space as a prolific developer with a Midas touch. The hype of the launch caused the YFI token which is his first product, to go from under $30 to about $42,000 in September. He was hopeful that more products will pour into his projects so he launched the Keep3r network and the Eminence platform which is now defunct. Today, Cronje only released a product with no token maybe because he wanted to avoid these kinds of issues or the issue with the loyal userbase but this didn’t stop the scammers from issuing fake ETH tokens on Uniswap.

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Issuing on Uniswap is quite simple. Anyone can put up a token and create a trading pair with another token which is usually Ethereum. It can then supply liquidity to both sides to launch a pool and with the market now available, buyers and sellers are free to join and trade. Today, Deriswap was released and the first scam pool launched a fake DWAP token with 72.4 ETH and even conducted a few trades. The process netted the scammer over 90.1 ETH which is worth $53,000.

They even sent the illicit DWAP tokens to the deployer contract address in order to make the issuance even more legitimate. This is the contract that Cronje controls and makes more updates to Yearn Finance. In the meantime, more than 30 DWAP pools were issued on Uniswap and each one attracted liquidity and netted the scammers with more ETH for their efforts. Considering that Deriswap didn’t even exist until this morning but scammers were quite fast as they were a part of a larger trend in the DeFi space.

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