HOW FAKE TOKEN TRICK INVESTORS AND STEAL FUNDS

Real tokens and fake ones mimicking them can exist on the same blockchain but with different smart contract addresses, or on different blockchains. Fake tokens can be used in a variety of fraudulent schemes.

Initial Coin Offerings (ICOs) and Token Sales: Attackers may launch fake ICOs or token sales, enticing investors with the promise of getting in early on a groundbreaking project. Once they collect funds, they disappear, leaving investors with worthless tokens.

Airdrops and Giveaways: Fake tokens are sometimes distributed through airdrops or giveaways, where users are asked to provide personal information or pay a small fee to receive the tokens. This can lead to further scams or identity theft.

Pump and Dump Schemes: Scammers may artificially inflate the price of a fake token through coordinated buying (pump) and then sell off their holdings at the peak (dump), leaving other investors with devalued assets on their hands.

#Lunchpool Token Scams: The schemes described above can be complicated and costly to pull off, so scammers may resort to lower-cost methods, like fake Launchpool token scams. In these scams, criminals take advantage of the publicity generated by a reputable exchange's promotion of an asset. They may, for example, falsely claim to offer these tokens at a discount via unofficial channels that are not associated with the platform, like Binance, which conducts the original promotion.#FakeTokens