BNB Chain Publishes List of High-Risk DApps and Tokens

BNB Chain, Binance’s proprietary blockchain, has made changes to its “red alarm” list to include just under 200 high-risk decentralized applications (DApps) and fake tokens, which are currently hosted on the blockchain, CoinTelegraph wrote.

Not investment advice

It is important to point out that BNB Chain’s red list does not constitute investment advice. It aims to help investors become more informed before making an investment decision. It makes no warranties as to the risk that the underlying DApp project entails.

Risk assessment based on smart contracts

BNB Chain’s red alarm list, which the exchange updates once a week, features DApps and other projects that are considered risky to invest in based on smart contract assessment.

The 191 DApps and tokens currently listed by BNB Chain are suspected of being fake or having non-transparent or excessive tax fees. In some cases, their Twitter handles or websites don’t work.

Projects flagged due to suspicious fund origin

The list enables investors and traders to scan BNB Chain projects for risks. Three of the projects on the list — Piston token, CycGo, and Shorter Finance — were flagged due to suspicions that their funding came from assets originating from privacy mixer Tornado Cash.

BNB Chain published an announcement, according to which users are encouraged to review their weekly Red Alarm list to become familiar with potentially fraudulent actors on the blockchain.

BNB Chain started testing decentralized storage solution

A week ago, BNB Chain began testing its in-house project Greenfield, which is an effort to provide decentralized storage solutions. BNB Greenfield enables users to manage data and create wallets.

Developers can control data assets. Data can be transformed into tradeable digital assets, which the user can then integrate with a number of NFTs, DApps, and GameFi apps on the BNB Chain.