According to a recent research titled “Do Not Rug On Me: Zero-Dimensional Scam Detection,” around 97% of the crypto projects launched on Uniswap are rug pulls.
According to the research conducted by Bruno Mazorra, Victor Adan, and Vanesa Daza, the ease of Uniswap and its lack of regulation make it easy for scammers to offer non-valuable tokens on the platform.
“If a token loses all of its liquidity or its price goes to zero and these levels are never restored, the likelihood that the falls are due to malevolent intent grows,” according to the paper.
The investigation indicated that various tactics are utilized to dupe new investors into purchasing harmful tokens. To detect the harmful tokens traded in UniswapV2, researchers manually categorised malicious and non-malicious tokens, as illustrated below:
“While this classification will provide a clear picture of the tokens in Uniswap,” the paper states, “it is dependent on non-observable variables such as intentionality and profits.”
The investigation looked at 27,588 tokens, 631 of which were declared non-malicious and 26,957 of which were deemed malicious. The results are made up of 24,870 quick rug pulls and 2,087 non-LP Burns.
This dataset is sufficient for the researchers to categorize all 26,957 tokens as malicious, implying that 97.7% of the tokens under examination are malicious.
The report, which was recently shared on Twitter by crypto influencer drnick, drew widespread criticism, with many questioning the study's rationale. Some Twitter users claimed that the report lacked sufficient evidence to justify such a proposal.