Solidus Labs introduces Automated Scam Token Screening API
To enable the growing use of decentralized trading, the new programmatic token security solution was built to support decentralized exchanges (DEX), traders, trading bot operators and other investors with a simple and efficient validation interface to protect against more than 250,000 – and growing – blanket frauds
NEW YORK, NY / ACCESSWIRE / March 9, 2023 / Head of Crypto and DeFi Market Integrity and Risk Monitoring Solidus Labs today announced the launch of the new TokenSniffer API. Built to combat the rug-pull epidemic affecting millions of DeFi and crypto investors, the solution enables platforms and investors to verify in real-time that they are not interacting with or receiving funds associated with fraudulent tokens and protects against fraud.
TokenSniffer’s “Smell Test” feature, now offered via API, analyzes on-chain data and smart contract source code to assess and alert the risk that investors will be “blanketed” by a token’s deployer. Smell Test allows for automated risk analysis, with more extensive risk monitoring capabilities available via HELLO – Solidus’ cryptonative market integrity suite. This newly released tool is designed to support decentralized exchanges (DEX), crypto trading bots and the wider DeFi and crypto community through seamless integration with TokenSniffer’s capabilities.
To enable the emergence of decentralized commerce while mitigating the new risks, the TokenSniffer API will allow platforms and traders to easily monitor for, detect and avoid counterfeit tokens in an automated way at scale, providing the highest standards of user protection and risk management available . in DeFi today. At the same time, Solidus will continue to offer individuals free access to TokenSniffer.com where they can test one token at a time, as part of the firm’s commitment to providing the DeFi risk assessment tools necessary to safely promote wider adoption.
DeFi activity has grown significantly over the past two years. Since early 2021, the total value locked (TVL) in DeFi platforms has grown 2,100 percenthas the number of DeFi users grown 700 percentand DEXs have gained on CEXs in the form of spot trading volume. This increased activity and potential of DeFi has been threatened by an increase in DeFi scam and fraud: In October 2022, The Wall Street Journal and Gardener reported on Solidus data flagging 188,000 hard rug pull scam tokens with a new scam deployed every four minutes on average, bringing the total number of hard-coded scam tokens to 250,000 by March 2023. The carpet pulls estimated to have harmed close to two million investors in 2022.
“As more users seek out DeFi platforms, the need to be able to spot smart contract fraud in real-time and assess for manipulative behavior is critical to consumer protection and industry growth,” said Asaf Meir, Founder and CEO of Solidus. . “This new product is central to Solidus’ vision – enabling DeFi’s potential by simplifying and mitigating risks, shedding light on manipulative and abusive behavior and accelerating safe adoption.”
The TokenSniffer API is available for purchase now at TokenSniffer.com, click here to learn more.
About Solidus Labs
Solidus Labs is the category definer for crypto-native triple T (3T) market integrity solutions – trade monitoring, transaction monitoring and threat intelligence. Our mission is to enable secure crypto trading throughout the investment journey across all centralized and DeFi markets. As the founder of industry-leading initiatives such as Crypto Market Integrity Coalition and The DACOM Summit, and in everything we do, Solidus is deeply committed to ushering in tomorrow’s financial markets. Crypto exchanges, financial institutions and regulators globally rely on Solidus HALO – our real-time, comprehensive, testable and future-proof platform. By protecting their business from known forms of market abuse and a host of new crypto-specific risks, we enable our customers to grow faster – and safer. To learn more, please visit: https://soliduslabs.com.
About Token Sniffer
Token Sniffer is a smart contract fraud detector integrated into HELLO – Solidus’ cryptonative market integrity suite. Cited by US Department of the Treasury and in testimony before the Senate Banking Committee, Token Sniffer is an established authority on smart contract screening. To learn more, please visit: https://tokensniffer.com/.
Solidus Labs Media Contact
Trevor Davis
Gregory FCA for Solidus Labs
443.248.0359 | [email protected]
SOURCE: Solidus Labs
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