Cryptocurrency Q&A
Is ERC-20 safe?
Is ERC-20 safe?
charlotte_anderson_explorer
Fri Nov 08 2024
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6 answers
1450
I'm concerned about the safety of ERC-20. I've heard about it in the context of cryptocurrency and blockchain technology, and I want to know if it's secure. Can someone explain whether ERC-20 is SAFE to use or not?
6 answers
GinsengBoostPower
Sun Nov 10 2024
One of these threats is the exploitation of backdoors in token functions. These backdoors can be used by malicious actors to gain unauthorized access to the token's codebase and manipulate its behavior.
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Davide
Sun Nov 10 2024
Another threat is the presence of bugs and vulnerabilities due to inadequate testing and auditing. If a token has not been thoroughly tested and audited, it may contain flaws that can be exploited by attackers.
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Thunderbolt
Sun Nov 10 2024
Pump and dump schemes are also a significant threat to ERC20 tokens. These schemes involve the artificial inflation of a token's price through coordinated buying and then the dumping of the token onto the market, causing significant losses for investors.
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Enrico
Sun Nov 10 2024
ERC20 tokens face numerous security threats.
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Leonardo
Sun Nov 10 2024
The low entry barrier for creating tokens exacerbates the pump and dump problem. With minimal effort, anyone can create a new token and launch a pump and dump scheme, making it difficult for investors to distinguish between legitimate and fraudulent tokens.
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