Binance’s BNB Channel Reveals a “Red Alarm” List of 191 Risky dApps Running on its Network: Details

Binance’s BNB Channel Reveals a “Red Alarm” List of 191 Risky dApps Running on its Network: Details

Binance's BNB Channel Reveals a "Red Alarm" List of 191 Risky dApps Running on its Network: Details

Binance’s BNB chain has alerted the global crypto community against interacting with several suspicious dApps operating on its network. The BNB chain, which currently hosts a plethora of decentralized applications (dApps), has updated its “Red Alarm” list with the names of 191 dApps that may pose financial risks to users. These flagged apps include Cineru, Sezams, Shorter Finance, The Bandit Project, The Cake Monster, and OnlyBrain. BNB Chain’s list of potentially risky dApps also reflects why they caught its attention and the reasons range from their inactive Twitter handles to the lack of a functioning website.

“Often, the contracts of these risky dApps do not match their advertised functions, putting users at risk of losing funds,” BNB Channel said on its official blog page. Many dApps listed in the Red Alarm Index have raised suspicions about offering fake tokens or high tax fees, increasing the number of ways unsuspecting investors could lose their hard-earned funds.

Some dApps like Piston Token, CycGo, and Shorter Finance have been added to the list due to their association with crypto mixer Tornado Cash, which is under scrutiny in the US for helping cybercriminals distribute from illegal tokens to anonymous wallets. According to analysis conducted by the BNB chain, these apps are suspected to be funded by assets emerging from Tornado Cash, a CoinTelegraph report says.

Building on the success of ChatGPT, scammers have also launched a bunch of ChatGPT-like dApps to take advantage of crypto investors. According to the blockchain blog, the list of red alarms is updated every Friday to warn the crypto community of risks on the network.

“The red alarm list features high-risk dApps on the BNB channel, which may involve sweepstakes or scams and are assigned significant risk levels. DappBay updates the red alarm list every Friday to include new high-risk projects and decentralized applications. To better navigate the growing list, users can sort dApps by category, date added to Red Alarm, or number of users,” the official blog post adds.

Part of the Web3 world, dApps are software that runs on a blockchain rather than a single computer or server, which removes them from the control of a single authority, freeing them from censorship. Developers publish dApps in verticals including gaming, social media, and finance, among others.

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