Here is the rewritten content in well-organized HTML format with all tags properly closed:
Blockchain Security Firm Warns of Malicious Crypto Tokens
Rise of Memecoins and Copycat Tokens
Blockchain security firm Blockaid has issued a warning regarding the proliferation of malicious crypto tokens launched this year. According to the company, a full 59% of new tokens introduced in 2024 are “malicious in nature.”
The number of nefarious tokens being sold into the open market ties in with the rising memecoin narrative that has been consistent throughout this cycle. There are now 10 memecoins with a market cap of $1 billion or greater, leading to copycat tokens being launched on Ethereum, Base, and Solana, among other chains.
Rug-Pull Scams Remain a Prevalent Threat
Rug-pull scams remain a prevalent threat, making up 27% of malicious tokens, Blockaid said. These scams involve the sudden abandonment of a project, leaving investors with worthless tokens and no way to recover their losses.
Reduced Losses from Hacks and Scams
It’s worth noting that the amount lost to cryptocurrency hacks and scams has shrank dramatically. The FBI reported that in 2023, $5.6 billion was lost to crypto scams, while this year the total is $1.4 billion, according to Blockaid’s report.
Data Analysis
Blockaid’s data stems from an on-chain detection and response (ODR) platform that processed 2.41 billion transactions, 780 million dapp connections, and 220 million tokens in 2024.
FAQs
- What is the percentage of malicious crypto tokens launched in 2024? 59%
- What is the current market capitalization of memecoins? $1 billion or greater
- What percentage of malicious tokens are rug-pull scams? 27%
- How much was lost to crypto hacks and scams in 2023? $5.6 billion
- How much was lost to crypto hacks and scams in 2024? $1.4 billion
- What is the source of Blockaid’s data? An on-chain detection and response (ODR) platform that processed 2.41 billion transactions, 780 million dapp connections, and 220 million tokens in 2024.
Conclusion
In conclusion, the rise of malicious crypto tokens is a growing concern, with 59% of new tokens launched in 2024 being “malicious in nature.” The proliferation of memecoins and copycat tokens is driving this trend, with rug-pull scams making up 27% of malicious tokens. While the amount lost to crypto hacks and scams has decreased, it is still a significant threat. Investors and regulators must remain vigilant to protect themselves and the industry from these threats.
