Token Sniffer may be very easy. Paste the sensible contract tackle into the software to scan for indicators of fraud. However for firms that must verify a whole bunch of tokens a day, this does not actually scale.
That is why Solidus Labs, a blockchain safety firm that acquired Token Sniffer final 12 months, is rolling out Token Sniffer API subscriptions for giant purchasers like decentralized exchanges and buying and selling bots. It permits clients to programmatically run sniff assessments in opposition to over 2 million tokens throughout 12 blockchains together with Ethereum, BNB Good Chain, Polygon, Arbitrum and Optimism.
Token Sniffer helps detect two of the most typical token scams: lag pulls and honeypots.
Lagpulls embrace newly issued tokens which were bought to unfortunate traders and subsequently deserted by their creators. When builders promote their shares of tokens, the unsuspecting customers who purchased them are left with a nugatory asset. Honeypots equally begin by providing new tokens, however perpetrators cease customers from reselling their tokens.
However there are others, similar to id theft. Token Sniffer Recognized When Coinbase Launched Layer 2 Base 4 different tokens Phantom and Ethereum networks attempting to use the corporate’s huge information.
Solidus Labs says it has uncovered over 250,000 lagpulls since 2021 and estimates {that a} new fraud token is created each 4 minutes, so long as it takes you to learn this text. Within the final 12 months alone, pulling the rug affected him by an estimated 2 million customers, in accordance with Solidus information evaluation.
Since DeFi launched in 2021, the software has gained tens of 1000’s of distinctive customers per day.
“On the identical time, we’re receiving requests from DEXs {and professional} merchants on find out how to use TokenSniffer in a scalable approach. This API possibility is a pure subsequent step in offering business instruments to fight the lag-pull epidemic.” stated Arad.
The brand new API subscriptions are supplied in two tiers from $100 to $200 monthly. Solidus Labs Chief Working Officer Chen Arad stated the net software will stay free for anybody who’s snug checking his tokens one by one.
It’s because Solidus stated it would not need the typical decentralized monetary consumer to be protected trapped behind a paid API endpoint.
“If my grandmother desires to make use of DeFi, she would not have to fret about somebody pulling the rug, washing the deal, slicing the underside and prime,” Arad says. “It is also a part of accessibility. If it is open to everybody, however it’s not safe, then, in my view, it isn’t accessible. And that is the underside line right here.”
In actual fact, a fast seek for Token Sniffer on Twitter reveals principally builders bragging about their security scores and customers criticizing token issuers for why their sensible contracts had been flagged as honeypots. enhance.
A former journalist and college lecturer, Arad based the corporate in 2018 with former Goldman Sachs engineers Asaf Meir and Praveen Kumar. It touts some notable backers: former Commodity Futures Buying and selling Fee Chairman Chris Giancarlo and former SEC Commissioner Troy Paredes.
