I don't know what and how much CZ accomplished by creating Binance Smart Chain, but he really created a safe heaven for scammers! According to my experience, almost 90% of tokens on BSC are scams. Well, make it 95%!
I have been trading, joining various presales on BSC since 2019. After almost two years, it is still hard to determine which one is scam or honeypot and which one is legit! Because scammers are coming in hot every day with new techniques and rug pull methods. One day they will scam you with slow rugpull; another day, they will kill your investment with honeypot.
Some Solidity developers who make tokens just to scam people already got a PHD(!) degree in this line for scamming, pishing and rugging! Believe me, if you are new, you won't even see it coming! In some tg, some owners and admin even doxx themselves. They act better than any Hollywood actors or actress. Then one day, when the price is at the top, they'll just pull the rug!
Some devs even act like they have been hacked so that nobody can blame them. But the truth is they keep a loophole in the contract so that they can pull the plug whenever they want!
I hope this article will help you a lot because I am sharing my BSC experience here. I have been scammed so many times, even I lost count and lost a lot of money. No offense, I also earned a lot of money as well. I already said 95% BSC tokens are scams (According to my experience). But if you are able to find another 5%, you'll make a shit load of money.
That's why I am sharing my experience to avoid facing situations like me. I will tell you about various types of crypto scams in today's article. Maybe later, I will share how to find cons and stay safe!
Why is BSC a Wild West?
Not to mention, the primary and only reason for scamming people is money. And victims also get rekt because of money, as they want to make big bags within a short time. For that reason, maximum investors choose BSC to make fast money, and fraudsters choose BSC to scam those poor souls.
At this moment, the most popular blockchain is Ethereum. But BSC mainnet is becoming popular day by day as it's cheap and fast. Nobody wants to pay 100 to 200 bucks for every transaction, and that's just insane. Only people who have more considerable holdings love to trade on Ethernet. Otherwise, most medium and small investors like me prefer to trade on BSC tokens, and the gas fee is so cheap.
Like you have to pay just a few cents for every blockchain transaction. That's why the number of investors in BSC is increasing day by day.
The same logic goes for scammers. They don't want to pay high gas fees while creating a token. If a scammer gets maximum people with a small cost, then why not! That's why scamming on ETH is relatively lower than BSC!
Another reason behind many rugs in BSC is that creating a token on Binance Smart Chain is so easy. Even a noob can make his first coin by watching tutorials on Youtube! Just create a token using solidity and add liquidity. A lot of work in between but not that hard, even I also made a token on a test basis by following Youtube videos.
So, you don't actually need to be a developer to scam people on BSC. Even an ordinary can go rough if they are hungry for money!
And as BSC tokens are being traded on decentralized exchanges like Pancakeswap or Babyswap, scammers don't have to do KYC like they have to do on CEX exchanges. They don't really need to doxx themselves to run a token! And this is how it's easy for bad people to scam good people here.
After rugging people, crook just can be vanished. Seriously, nobody can reach him, as he is not doxxed, and BSC is decentralized. This means you can track the transactions on Bscscan, but you can't really find out who just scammed unless they transfer scammed money to CEX like Binance, Coinbase, etc.
So it is pretty scary to put your money on BSC. There's no regulation and nothing! But this is also how decentralization works, isn't it? They always say you do your own research and only invest the money you can afford to lose!
But how many of us actually follow these morals? We love to jump in the fire. Either big profit or nothing! It's pretty like gambling rather than trading.
But let me ease your fear a bit. There are lots of ways which you can follow if you want to stay safe and make some bucks! I will share my experience regarding this, maybe in my next article!