More than half of Token launched in 2024 are toxic

According to Blockaid, 59% of new cryptocurrency tokens launched in 2024 were malicious and fraudulent. More than half of the tokens launched in 2024 were of a malicious nature. Image: Trend Micro The recent report from the blockchain security company Blockaid provided a comprehensive overview of the cryptocurrency market in 2024, particularly highlighting the increasing risk from malicious and fraudulent tokens. The bad: ⛔️ $1.47B stolen in scams or fraud ⛔️ 59.3% of tokens were malicious ⛔️ 15.7M new malicious dApps went live For more, check out the dashboard here: https://t.co/olct2iC6B6 pic.twitter.com/Z86sqZ6b5V According to Blockaid, 59% of tokens launched in 2024 were identified as "malicious in nature". In total, cryptocurrency-related fraud and scams caused around $1.4 billion in losses this year. The increase in these malicious tokens is related to the meme coin trend, which has attracted investor attention but also created conditions for "copycat" projects to proliferate. There are currently 9 meme coins with a market capitalization of over $1 billion, fueling the creation of many "cloned" tokens on Ethereum, Base, Solana, and other blockchains. Projects that "ride the wave" often pose significant risks, with rug pulls being the most notable, accounting for 27% of all malicious tokens. Rug pulls are a form of fraud where token developers withdraw all liquidity and abscond, causing significant losses for investors. While malicious tokens remain a threat, the amount of money lost to fraud and scams has decreased significantly. According to data from the FBI and Blockaid: - In 2023, the total losses from cryptocurrency scams reached $5.6 billion. - In 2024, this figure dropped sharply to only $1.4 billion. Also Read: Losses from hacks and scams in Q3/2024 decreased 38% compared to the same period last year Blockaid's findings are based on data collected from the ODR platform. In 2024, the platform processed 2.41 billion transactions, 780 million dApp connections, and 220 million tokens. In summary, Blockaid concludes that the cryptocurrency market in 2024 still faces significant risks from malicious tokens and fraud like rug pulls. However, the amount of money stolen has decreased significantly compared to 2023, indicating that security efforts and user awareness are paying off. Investors need to remain cautious when participating in new projects, especially as the meme coin boom continues. According to a Binance survey, users on the exchange also held mainly meme coins, preferring them over Bitcoin in 2024.