Crypto Scammer Scammed Himself On PancakeSwap And Here’s How

A crypto scammer scammed himself apparently on Pancakeswap with the Reddit community making fun of him after he lost a seed investment on the token he created so let’s read more in our latest crypto news.

A crypto scammer scammed himself as it was posted in Reddit when a user started asking for help in returning funds from a BEP-20 token he created. It turns out this was a scam mimicking an existing unranked project whose use case was to mine crypto on mobile phones. Whether on ETH or Binance Smart Chain, anyone can create a token. But with the binance Smart Chain, it is much cheaper and users seem to be making their way to the network.

In a now-deleted post, the Reddit user at the heart of the storm asked the community to help and wrote:

“Hey, I created a token on pancakeswap but now I want my money back. It says I cant trade it back because price impact is too high. So I basically lost. 366$? Please help.”

The analysis of the information shows that the user created a PI token that is selling it on the premise of being the BSC token for another crypto with the same name. The users’ post history shows that he promoted an affiliate link for another cryptocurrency. But when trying to withdraw his initial investment, the smart contract prohibited him to perform a withdrawal because it was going to impact the token price due to low liquidity. At this stage, it is not known whether this was a BSC safeguard or whether someone else rug pulled him and triggered the protection.

BSC launched in September 2020 as a parallel blockchain to Binance Chain. It enabled creating smart contracts for the BSC network tokens which are also introduced in the new BNB staking mechanism. The goal is to rival DeFi on Ethereum and with cheaper and faster transactions, users are flocking to BSC. In less than a year, the total value locked in BSC hit $43 million while it took four years for the TVL on Ethereum to reach $65 billion.

BSC was hit with a series of scams and the biggest one of all was Meerkat Finance back in March which netted the scammers a total o $31 million. There were others as well like Popcorn Swap, Tin Finance, Turtle DEX, and Zap Finance.