BNB Chain, the blockchain network of cryptocurrency exchange Binance, has added 191 new projects and decentralized applications (DApps) to its red alarm list due to the high-risk nature of these entities.
The list is updated on a weekly basis to caution users about the projects and DApps on the blockchain that are deemed risky by their developers. The smart contracts of each project or DApp are evaluated to make these judgments. BNB Chain has stated that the 191 new additions to the list are suspected of issuing fraudulent tokens, charging excessive fees, or having non-functional websites and social media URLs.
BNB Chain has advised users to review its weekly Red Alarm list to stay informed about suspicious actors on the network. It emphasized that the list is not investment advice and does not provide a definitive representation of the risk level of any project or DApps. Instead, the purpose of the list is to assist users in conducting their own research before making any investment decisions. Additionally, BNB Chain has a risk scanner that allows users to scan any project on the blockchain for potential risks.
According to the list, three projects, namely CycGo, Piston, and Shorter Finance, have been potentially funded by assets from the now-sanctioned crypto mixer Tornado Cash.
