365Crypto
Solana Blockchain have been plagued with scam, from FTX to the 2 million meme coin pumped mostly by scammers, but with no doubt have been facilitated and celebrated by the Solana team.
Now scammers have found a new way to scam, by stealing Solana users’ crypto through a burning tokens process that happens shortly after purchase. According to Slorg from Jupiter’s Core Working Group, scammers are exploiting Solana’s “Permanent Delegate” extension, which allows them to delete tokens from wallets without the user’s knowledge.
In one case, a user bought a token called “RED” and saw it disappear just seven seconds later. The “Permanent Delegate” feature in Solana’s Token 2022 standard allows unrestricted access to burn or transfer tokens. While intended for legitimate uses like retrieving misplaced tokens, it can be abused by scammers.
Scammers might burn tokens for several reasons: to cause chaos, reduce token supply, or manipulate prices, and prevent selling so that they can continue to dump on buyers. For example, by destroying tokens, scammers can artificially inflate prices and profit from related DeFi protocols. Slorg noted that some scammers make small profits by repeatedly launching and burning tokens, accumulating significant gains over time.
Blockchain security firms Beosin and PeckShield support these theories, suggesting that scammers manipulate tokenomics by altering the circulating supply.
To protect themselves, users are advised to thoroughly check token details before making swaps. Slorg emphasized the importance of due diligence, as new token features could be exploited.
Others have also reported similar scams recently, highlighting the need for caution.
