Crypto Security Intelligence: How to Identify and Avoid Fake Binance Launchpool Tokens
Main Takeaways
Binance users are increasingly falling prey to scam artists pushing fraudulent cryptocurrencies on decentralized exchanges (DEXs) and falsely advertising them as part of official Binance Launchpool offerings.
These scams operate through misrepresented “pre-sales” on temporary Telegram groups and websites, far removed from standard official Binance Launchpool operations. Always be wary of promises that sound too good to be true, as genuine large-scale investors typically don’t share their “magic formulas” freely.
It is your responsibility to verify the legitimacy of the assets you buy outside of Binance. Crypto transactions are irreversible. Therefore, Binance bears no responsibility for lost assets.
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Scammers have been creating temporary Telegram groups and websites, advertising these tokens as “pre-sales” – a clear deviation from standard official Binance Launchpool practices. These scams often trap people with the allure of impressive, irresistible returns.
One essential rule to remember: if an investment opportunity sounds too good to be true, it probably is. Individuals who have attained significant wealth through smart investing aren’t typically sharing their “magic formulas” with the public freely.
Screenshot of a Telegram group advertising a fake token with the accompanying contract address, as reported by victims
Understanding Binance Launchpool
Binance Launchpool is a program that introduces new, legitimate coins to the public. Users can stake their BNB or stablecoins to earn returns on these new tokens, which are exclusively listed on the Binance exchange before any other trading platforms, including any DEXs. Users can only participate in Binance Launchpool initiatives via our app or website. If a program advertises itself as part of Binance Launchpool but is found outside our platform, it is most likely fake.
To stay up-to-date with our latest Launchpool initiatives, we urge you to subscribe to our official social media channels, such as the official Binance Twitter account, and regularly check our website’s official announcement page. These platforms offer the most accurate, real-time information regarding our upcoming Launchpool programs.
Binance Web3 Wallet
The Binance Web3 Wallet is a self-custodian wallet. This means that while the wallet is an excellent tool for managing your crypto investments, it is your responsibility to verify the legitimacy of the coins you aim to buy beyond the Binance platform. Always reach out to Binance customer service for any clarifications, and please commit the time to educate yourself independently. Binance cannot be held responsible for asset losses incurred when users buy fake tokens or suffer financial losses through the wallet. Crypto transactions on the blockchain network are irreversible; hence, recovering stolen funds is typically impossible.
Binance’s Protective Measures
At Binance, we prioritize protection and education for our users. Among our range of protective measures, we have implemented the procedures below to help protect against fake Binance Launchpool offerings.
1. Pop-up alerts
Binance may send out security pop-up alerts before the launch of new Binance Launchpool tokens, reminding users about potential scams. These pop-up messages also include a link to our official announcement page for those seeking further information about the upcoming launch. These security pop-ups cease once trading for the coin begins.
Screenshot of a pop-up alert we send to users
2. Integrated security alert system
We are working with our wallet services and decentralized exchange partners to integrate a proactive security alert solution beyond the Binance platform. This system is provided by HashDit, a security partner of Binance and warns users about potentially suspicious blockchain addresses and tokens.
When using PancakeSwap, their swap page enables you to choose the token you wish to swap to, by entering the contract address or name associated with it.
Pressing Import leads to the details page which lists the Risk Level associated with the contract by HashDit. Hovering over it provides an explanation of the associated risk, if you proceed to interact with the contract. When available, there is also an additional option to view more details on RedAlarm.
Screenshot of a risk alert on PancakeSwap DEX
Stay Safe
Maintaining vigilance while using your crypto wallet is an absolute must. With the surge in cryptocurrency usage, the landscape is filled with copious investment opportunities. However, the importance of vigilance and thorough investigation of these so-called “opportunities” cannot be overstated. Paying close attention to the details, scrutinizing their source, and ensuring their authenticity are practices that should never be taken lightly.
For those of you who may not be aware, a token contract address is a unique identifier of a particular token on the blockchain. It’s like the token’s “home address” on the blockchain. Each token has a unique contract address and corresponding blockchain network. These details can help verify a token’s legitimacy before purchase.
If you do not know how to check a token’s contract address or what it implies, we strongly recommend you do some reading and educate yourself before deciding to buy any coins outside of Binance. Taking just a little time to do so could save you from potentially enormous losses. When in doubt, feel free to contact our customer support for clarification.
Remember, keeping yourself updated and informed is the first step to making robust investments in digital assets.
Further Reading
Disclaimer: This content is presented to you on an “as is” basis for general information and educational purposes only, without representation or warranty of any kind. It should not be construed as financial advice, nor is it intended to recommend the purchase of any specific product or service. Digital asset prices can be volatile. The value of your investment may go down or up and you may not get back the amount invested. You are solely responsible for your investment decisions and Binance is not liable for any losses you may incur. Not financial advice. For more information, see our Terms of Use and Risk Warning.