Snowflake Floki, a mimic of popular meme coin Floki Inu, has now been branded a honeypot scam.
The new development came after on-chain security analytics firm, Peckshield, issued a security notice on their blog post and social media Twitter.
The security firm issued a severe warning to buyers and investors in the community and its robust follower base on Twitter, telling everyone to stay away from the shitcoin.
Honeypot Scams In The Industry
Ideally, a Honey pot is a trap that utilizes sweet honey to attract insects, and parallel can be drawn with real-life scenarios in the developing crypto industry.
Buyers and investors are attracted with compelling and enticing prospects for their investments; on reaching a target trade volume, the network is effectively locked down, and all withdrawals are blocked. Ignorant buyers can still buy the scam token, but they will lose their capital.
The mainstream mechanism scammers that utilize this modus Operandi use to cart away the accumulated funds is blocklisting all wallets in the system except theirs.
The scam type is one of the most common methods that nefarious individuals utilize. Ether users in the global crypto community have been battling honeypot scams since the network’s inception.
One of the significant reasons that honeypots are rampant in the ether network is the ease and low cost of service the Blockchain network offers. The cheapest Blockchain network for issuing crypto tokens is ether networks; the most popular service provider in this sector is the Binance Smart Chain.
The Binance Smart Chain (BSC) hosts the highest number of recorded honeypot scams in the industry, and this can be attributed to its unique position in the industry globally.
Snowflake Floki, Latest Honeypot Scam In The Industry
The Snowflake Floki token is a mimic of the popular Floki Inu canine coin. It presented itself as a vital project that can field sustainable price growth.
The copycat coin went live on Pancakeswap earlier on Monday. The infamous Binance Smart Chain powers the decentralized platform; users familiar with honeypot scams already suspected foul play upon noticing the listing. Some reacted by posting their skepticism on Twitter later that day.
There’s now an easily accessible method to confirm the authenticity of a new crypto project. This method, however, can be circumvented by scammers and is not foolproof. It is an on-chain feature called the honeypot detector.
The honeypot detector simulates buy and sell orders to determine the project’s authenticity.
Peckshield Alert has confirmed the speculations of users and has issued a warning to investors globally to steer away from the project.
Earlier in October, an action thriller inspired crypto token squid game made headlines in mainstream media after gaining over 40,000% in price value. Such price inflation was because of the project’s anti-dump mechanism that will supposedly allow investors to acquire a higher ROI than another project. The token turned out to be a sham that stole millions of dollars from investors globally.
Bad actors are now capitalizing on proper crypto meme coins like Doge, SHIB and Cloki Inu to perpetrate different scams.