Smart Contract or Scam Contract? – Ftcyber.com Points Out the Red Flags

FT Cyber

When you see the word ‘smart contract’ in a whitepaper, you should read it as a ‘one-way contract’ favoring the other party.

It won’t be long before SmartRegulators and SmartLawyers launch SmartLawsuits to notable exchanges”, says Timothy Benson, head of investigations at FTCyber”

— Timothy Benson

BERLIN, GERMANY, September 14, 2022 /EINPresswire.com/ — According to CheckPoint Research (https://research.checkpoint.com/2022/scammers-are-creating-new-fraudulent-crypto-tokens-and-misconfiguring-smart-contracts-to-steal-funds/), many scammers manipulate tokens’ smart contracts — contracts that exist and run automatically as code on the blockchain. Because they are stored on a blockchain, they are public, meaning that anyone can see the terms of the contract and know exactly how it’s executed.

Generally, it is misunderstood as a fool-proof contract because it is executed automatically. People don’t realize that the automatic execution of contracts at the click of a button can be disastrous. This is especially true if one has put their life savings on the other side of the contract and the counterparty is anonymous. According to recent scam victims, this scenario is what FTCyber.com has found to be the latest wave.

The risks of scam contracts

When investing in cryptocurrency, there’s always a risk that anyone could end up being scammed. This is especially true regarding smart contracts, self-executing contracts…

Read more…

Leave a Reply

Your email address will not be published. Required fields are marked *