Tuesday, December 6, 2022
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Binance CEO says its Red Alarm system flagged 50 projects as potential scams

On August 15, Binance CEO Changpeng Zhao revealed that the Binance chain network Red Alarm had identified 50 future programmes as possible scams or rug pulls. The Binance “red” warning system identifies unsafe on-chain initiatives that its consumers should avoid.

Binance collabs with Dappbay  for the Red Alarm feature

The algorithm flags initiatives using two key criteria: if the agreement works differently compared to what the developers stated, or whether the contract contains dangers that might affect the money of customers. Binance and Dappbay partnered in July to introduce the Red Alarm feature to Binance.

The current red alert list includes several crypto spin-offs similar to Dogecoin (DOGE), along with Binance. Several projects use pandas, koalas, and even cyborgs to emulate Dogecoin’s animal impact.

According to Gwendolyn Regina, investment director at BNB Chain, the Red Security system assessed 3,300 agreements in July, and the business is working on further methods to detect misleading behaviour in the network.

Most significantly, the Red Alarm function keeps consumers one step ahead of fraudsters. The system notifies consumers in real time of possible hazards connected with ventures, enabling the public to make well-informed investment decisions.

Users of Binance Red Alarm service examine risks

Clients of the Binance Red Alarm service may also examine risks identified by inputting the contractual value to see whether they contain logical errors or fraud threats. Although it is an incredible platform for BNC clients, the business urges them to “conduct their own study.” Fraud and cyber assaults may affect any project.

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