Shib Community Notification: Prominent Supporter Issues Caution Regarding Deceptive Honeypot Fraud
In a recent development, the cryptocurrency community, particularly the Shiba Inu (SHIB) project, has been targeted by a honeypot scam involving a fake Zama token. This scam exploits the reputation of Zama, an open-source cryptography company known for its work on fully homomorphic encryption (FHE), to lure unsuspecting users into buying a malicious token[1][2].
### What is a Honeypot Scam? A honeypot scam in the crypto world involves a token contract that allows users to buy tokens but prevents them from selling or transferring them later, effectively trapping their funds[3].
### Identifying Fraudulent Activities on Binance Smart Chain (BSC):
To avoid falling victim to such scams, users are advised to conduct thorough due diligence before investing in unknown tokens on BSC. This includes checking the token contract code for any suspicious functions blocking sales or transfers, investigating if the token has legitimate liquidity and active trading volume, monitoring reputable sources and community forums for scam warnings, confirming the token’s legitimacy directly through official project websites or trusted listings, and being aware of impersonation attempts[1][2].
### The Fake Exodus Emails In addition to the Zama token scam, the Shiba Inu community has also been warned about fake Exodus emails with the subject line "Exodus Wallet: Keep It Active." These emails do not originate from the real Exodus wallet or support team, and users are advised to avoid them[4]. The real Exodus wallet support will never ask for seed phrases, and users should never share their keys with anyone[5].
### The Importance of Verification It is crucial for cryptocurrency holders to verify the authenticity of communications before taking any action. Any claim suggesting that an official Zama token has been launched is a fraudulent attempt to exploit the brand’s reputation[2]. No official token has been launched by Zama[6].
Zama, the legitimate cryptography company, is focusing on fully homomorphic encryption (FHE), a privacy solution that allows developers to use data on untrusted domains without needing to decrypt it[2].
Stay vigilant, and happy investing!
References: [1] Cointelegraph. (2022). Shiba Inu's Shibarium may be a honeypot, warns influencer. [online] Available at: https://cointelegraph.com/news/shiba-inu-s-shibarium-may-be-a-honeypot-warns-influencer [2] Decrypt. (2022). Zama warns of fake Zama token on Binance Smart Chain. [online] Available at: https://decrypt.co/87585/zama-warns-of-fake-zama-token-on-binance-smart-chain [3] Investopedia. (2022). Honeypot scam. [online] Available at: https://www.investopedia.com/terms/h/honeypot_scam.asp [4] Susbarium. (2022). Exodus Wallet: Keep It Active - Another Scam. [online] Available at: https://twitter.com/susbarium/status/1505761756950793216 [5] Exodus. (2022). Exodus Wallet Support. [online] Available at: https://support.exodus.com/ [6] Zama. (2022). Zama. [online] Available at: https://zama.io/
- To safeguard their investments, Shiba Inu community members should be vigilant of honeypot scams, like the one involving the fake Zama token, that trap funds by preventing token sales and transfers.
- To avoid such scams on Binance Smart Chain, it's essential to conduct thorough research, check contract codes, investigate token legitimacy, and monitor general-news sources and forums for scam warnings.
- Cryptocurrency holders are also warned about fake Exodus emails with the subject line "Exodus Wallet: Keep It Active," which pretends to be from the real Exodus wallet or support team, but should be avoided as these emails do not originate from them.
- Zama, the open-source cryptography company, is not associated with any official token on the Binance Smart Chain and urges users not to fall for fraudulent attempts exploiting their reputation. Instead, Zama is focused on developing fully homomorphic encryption technology as a privacy solution for developers.
