Fraudulent airdrops on Coinmarketcap: SaTT and TokenBot accuse the blow

Fraud at Coinmarketcap – CoinMarketCap is one of the reference sites to follow the cryptocurrency courses. However, the site is in the midst of turmoil after revelations of potential airdrop fraud.

Airdrop scams on Coinmarketcap?

At its beginnings, Coinmarketcap was a site to follow the course of different cryptocurrencies. Subsequently, it evolved, adding new features. Among them, the site offers track current airdrops as well as promotional airdrops.

Unfortunately, this feature is now singled out after two crypto projects have unveiled than CMC was responsible for fraud. According to them, the promotional airdrops are manipulated “for the benefit of a small group of fraudsters”.

So while these airdrops were meant to benefit thousands of users, they resulted in the tokens being sent to a handful of wallets, casting doubt on the legitimacy of the offer.

SATT’s aidrop

SATT is the first project to have suspected embezzlement on the side of Coinmarketcap. Indeed, the latter carried out a promotional airdrop campaign in partnership with the site last December.

However, the result was far from what was expected. Thus, the vast majority, i.e. 84%, of the tokens were distributed to only 21 different wallets. However, as part of this promotional offer, 25,000 wallets were to receive 4,000 SATTs each.

In practice, the funds were indeed sent to more than 20,000 different addresses. Nevertheless, tokens from 20,953 addresses were automatically transferred to 21 unique wallets.

Unsurprisingly, the destination wallets immediately resold all the tokens, leading to a severe drop in the SATT price. In total, the SATT price thus lost 70% of its value between 1 and 10 December.

Massive resale of SATT tokens.
Massive resale of SATT tokens.

By analyzing one of these addresses, we can see that it received hundreds of transfers before sell 4.3 million SATT tokens on the PancakeSwap protocol.

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TokenBot: history repeats itself

The SATT project was not the only one to have this bitter experience. Thus, the co-founder of the project TokenBot also identified similar behavior when airdropping his project.

So, according to Shaun Newsum, 30,000 winners had been selected by Coinmarketcap through a promotional airdrop. Once again, this one has no in the end only benefited a handful of fraudsters.

“It is obvious that someone has figured out how to trick Coinmarketcap. If we had done mass mailings, the aiddrop would have been a complete disaster. »

After sending the funds to the winners in batches of 4,000 TKB, Newsum quickly noticed that thousands of winners had sent their funds back to one and the same address.

Unsurprisingly, this one subsequently resold 4.9 million TKB tokens through the anySwap protocol.

Mass resale of TKB tokens.
Mass resale of TKB tokens.

Coinmarketcap kicks in

Our colleagues at CoinTelegraph wanted to know more about this case and questioned Coinmarketcap.

For its part, the site kicks in touch. Indeed, it states that only three projects expressed fears about this phenomenon and that the rest of the promotional airdrops seem to have gone as planned.

However, the platform does not exclude the existence of bots specialized in airdropsstating that bots “impact the entire industry”.

“The industry has been dealing with this issue in aidrop programs for some time and the reality is that no industry has been able to fully address the issue of bots. »

The platform added that it is actively working to improve its system in order to find solutions to this problem.

At the beginning of the week, the project Flare has made its airdrop, which the community has been waiting for for 2 years. Unfortunately, this did not go as planned and the price of the token has since lost 70% of its value.

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Fraudulent airdrops on Coinmarketcap: SaTT and TokenBot accuse the blow

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