97 percent of cryptoprojects on the exchange Uniswap are called fraudulent. What does this mean?

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The vast majority of tokens on the Uniswap decentralized exchange are allegedly "rag pools" - projects that are created by scammers solely to sell their own tokens for their own enrichment. Such projects usually have quite a clear development map and team, but as soon as its tokens start being sold to the first investors, the scammers simply abandon any development and go into cash. Bittorrent price prediction also suffers because of such unpleasant situations, which you can learn about at letizo.com

If the liquidity pool for the trading pair ETH-USDT has 100 ethers, then it must also have the dollar equivalent of this amount in USDT; that is, in this case, 155 thousand USDT. 

Rag pool is about liquidation of liquidity from pools by developers. They essentially sell coins from the pool, causing the second coin in the trading pair to depreciate; well, investors get the token without any value. This can affect the Bittorrent token price, for example. 

How money is lost on cryptocurrencies

The statistics from Uniswap price charts were posted on his Twitter page by Nick Almond, head of the FactoryDAO protocol. The studywas conducted back in 2021, but it was published only the day before. So, according to the document, 97.7 percent of projects on Uniswap could be called "rag pools." 

The study published by Almond deepened the work done by another team of analysts in 2021. They used a machine learning algorithm to analyze transaction data and find tokens on Uniswap that turned out to be fraudulent. However, this algorithm could only detect suspicious tokens after the fraudulent scheme itself had already been committed.

Uniswap coin price chart. Buying cryptocurrencies

An analysis of 20,000 more tokens was added to the old publication and new machine learning techniques that could "detect potential fraudulent actions before they happen" with 99 percent accuracy. Of the nearly 27,000 tokens that were analyzed, only 631 was "non-malicious."

The mascot of the decentralized exchange Uniswap

According to Decrypt's sources, the second "enhanced" study was published in March 2022 on the Multidisciplinary Digital Publishing Institute (MDPI) portal. The front page of the digital copy of the document has a date of January 2022. The MDPI version is three pages longer and has additional token attachments on Uniswap V2 through September 3, 2021.

Anyone can create a token, and you don't even need to have any deep knowledge of programming - you can just copy the code of another protocol, changing its name and some parameters in it according to the type of maximum number of tokens.

This is quite high, but it's not the fault of the Uniswap platform. Still, anyone can pour in a token and start trading it, so the scammers use this right. Investors in this situation need to be as careful as possible, make sure to research and invest only what they are theoretically prepared to lose.

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