Several cryptocurrency fans have reported fake token MASK, which impersonates the much-anticipated governance token of popular wallet MetaMask.
The Ethereum community has been targeted by an eight-digit fraud.
Today, on December 28, Ether holders began reporting a new “honeypot contact,” i.e., a token that can only be purchased but not sold. The fraud pretends to be MetaMask’s governance token, Mask, which has yet to be created.
Twitter user @lindyape posts an image of the transaction history of an Ether holder who paid 22 ETH (almost $88,000) for MASK and is unable to sell it at any price.
According to Etherscan, the total number of victims of this fraud could be close to 400. The cryptocurrency is issued by the dubious “MaskDAO,” whose website was created on December 27.
Some traders appear to have been able to sell during the first few hours of MASK activity. Despite having a reputation of 1/100 on the application DexTools, this coin is nevertheless relentlessly shilled by several NFT influencers.
This is how scammers obtain verification badges.
@cobynft, a crypto enthusiast, described how the MASK token’s issuers were able to obtain the verification badge on popular DeFi tool DexTool.
Hackers inserted malicious code into the token description that the website performed, resulting in the much-anticipated blue “Verified” label displayed next to the WETH/MASK combination.
According to Mr. @cobynft, the sell option was locked when $1 million in liquidity was deposited into MASK. The token is now branded as a “honeypot” by automated analytic systems due to its code, which includes a line that prohibits it from being sold.