Beware of Token Scams: A Crucial Warning for Investors

in blurt-170858 •  2 months ago 

Scammers have found a new way to exploit the Solana network by burning tokens inside your wallet almost immediately after a swap. Recently, a Jupiter community member encountered this scam.

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Burning Tokens After Transfer, Source: @SlorgoftheSlugs, from X

Some tokens have a "Permanent Delegate" attached, giving an address full control to burn or transfer tokens at will. While this extension is legitimate and typically used for sanctions, scammers use it to burn tokens right after they’re swapped. The burn can happen within seconds, leading to a total loss of your tokens.

How to Protect Yourself:

  1. Check for Permanent Delegates – Always verify if the token has this extension on platforms like Solscan.

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Permanent Delegates, Source: @SlorgoftheSlugs, from X

  1. Use Trusted Platforms – Jupiter Exchange and Rugcheck now offer indicators for Permanent Delegates, so always perform swaps through trusted exchanges.
  2. Take Your Time – Read all details of the transaction carefully before finalizing any swaps. Scammers rely on users overlooking the fine print.

This scam emphasizes the need for due diligence in crypto trades. As token capabilities evolve, so too do scam tactics. Stay alert and share this warning to prevent others from falling victim.

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