Binance Red Alarm Platform Flags 50 New Projects, Including Dogecoin Spin-Offs, Pandas, and Dogs

The recently launched BNB Chain’s Red Alert system has identified and flagged 50 new crypto projects as potential scams or rug pulls. The list is dominated by projects inspired by pandas, cyborgs, and Smurfs.

Binance Flags 50 New Crypto Projects

In July, Binance launched the DappBay to discover new web3 projects. The DappBay was built with a Red Alarm, which screens the project in real-time to assess its risks based on existing features. 

The Red Alarm has flagged over 50 new on-chain projects that pose a significant risk to users. The list of flagged projects is dominated by crypto spin-offs of the popular memecoin Dogecoin (DOGE) and Binance (BNB).

There are also other on-chain projects on the list that are inspired by pandas, dogs, koalas, cyborgs, and Smurfs.

The Binance Smart Chain Red Alarm

Red Alarm of the DappBay is a contract risk scanning tool launched on the BNB chain to assess the risk of screened projects based on existing features that have historically been present in scam crypto projects.

The system identifies risks based on two features. One, if the blockchain contract functions are different from what is advertised and two, if there are backdoors in the codes that can let the owners drain users’ funds.

Gwendolyn Regina, the investment director of BNB Chain, said that the Red Alarm system analyzed over 3,300 contracts in July. While the Red Alarm is a great tool, Binance has advised users to also do their own research to avoid falling into projects that evolve into scams after launch.

On the Flipside

  • Binance was recently forced to delist APM after a probe by the U.S. Securities and Exchange Commission revealed the token to be a security.

Why You Should Care

The Red Alarm feature was designed to help users avoid scammers by warning them in real-time of potential risks associated with the projects.

Binance has also helped in recovering stolen funds, read:

Binance Recovers 83% from Stolen Curve Funds

Binance’s delisting of AMP is covered in:

Binance.US to Delist AMP After the SEC Labels the Token a Security

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed to be financial legal or tax advice. Trading Forex, cryptocurrencies, and CFDs poses a considerable risk of loss

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Author

Milko is a DailyCoin reporter, mainly focused on Ethereum (ETH), Cardano (ADA), and their founders (Vitalik Buterin and Charles Hoskinson). Milko is an avid follower of crypto and blockchain technology and has written thousands of articles on the subjects. He finds joy in transforming complex issues into written content that anyone can understand. Milko has used and analyzed numerous exchanges, such as Coinbase, FTX, and Binance. He also closely follows all of the latest news around the largest decentralized exchanges (DEXs).