Key points of the news:
- In 2024, 59% of the crypto tokens launched were malicious, with “rug-pull scams” representing 27% of these frauds.
- The rise of “memecoins,” with 10 reaching a market capitalization of over a billion dollars, has fueled the proliferation of scams.
- Despite the increase in malicious cryptocurrencies, losses from frauds and hacks decreased significantly, from $5.6 billion in 2023 to $1.4 billion in 2024.
In 2024, the number of malicious crypto tokens launched on the market reached alarming figures, according to a report from blockchain security firm Blockaid.
59% of the new tokens introduced were categorized as malicious, showing a concerning trend within the crypto ecosystem. Among the most common types of frauds are “rug-pull scams,” which accounted for 27% of malicious tokens. These frauds occur when the creators of a token suddenly withdraw funds or liquidity from a project, leaving investors unable to recover their money.
The rise of “memecoins,” cryptocurrencies that have no fundamental value and are primarily created to capitalize on viral trends, has been a crucial factor in this phenomenon. In 2024, 10 of these tokens reached a market capitalization of over a billion dollars, which has driven the creation of similar projects across various chains like Ethereum, Solana, and Base. This behavior has led to the massive launch of unsupported tokens, many of which end up being fraudulent, harming users who invest in them without conducting proper research.
Malicious Tokens Proliferate, Frauds and Hacks Fall
Despite the increase in malicious tokens, the total losses from crypto frauds and hacks saw a significant decrease compared to the previous year. According to data provided by Blockaid, in 2023, crypto frauds caused total losses of $5.6 billion, while in 2024, that figure dropped to $1.4 billion. The massive decline in losses can be attributed to an increase in security measures and greater awareness within the crypto community about the risks associated with such frauds.
Blockaid, which has processed 2.41 billion transactions and more than 220 million tokens through its detection and response platform, continues to monitor threats and provide solutions to protect users and businesses in the market. However, the proliferation of malicious cryptocurrencies remains a challenge for the industry, and ongoing efforts are needed to mitigate its impact
