73.3% of Q1 rug pulls happened on BNB Chain: Immunefi

BNB Chain was the king of rug pulls successful the archetypal 4th of 2023, with implicit 73.3% of specified scams successful the full crypto ecosystem happening connected the network, according to an April 4 study from blockchain information steadfast Immunefi.

The report, titled “Crypto Losses successful Q1 2023,” investigated a assortment of crypto hacks and scams successful the archetypal 4th of the year. It recovered that Ethereum and BNB Chain were the 2 largest targets for hackers and scammers, with 68.8% of full losses from these networks combined. BNB Chain, successful particular, made up 41.3% of full losses from hacks and scams.

One benignant of scam, successful particular, reigned ultimate connected BNB Chain: rug pulls, a benignant of scam wherever developers rise funds and past adjacent up store without delivering a merchandise oregon service. Immunefi stated that 73.3% of each rug pulls successful the crypto ecosystem happened connected BNB Chain successful the archetypal quarter.

Related: Uniswap launches connected BNB Chain ecosystem to thrust maturation and liquidity

Immunefi tech Lead Adrian Hetman speculated that the ample fig of rug pulls connected the concatenation whitethorn beryllium owed to a civilization that promotes forking open-source code:

“BNB Chain inactive has a superior contented with developers utilizing forked code. Its assemblage lacks a security-first attack and attracts galore users looking for a speedy mode to gain money. That’s wherefore we proceed to spot the biggest fig of exploits and rug pulls successful this ecosystem.”

Despite the prevalence of these scams connected BNB Chain, Immunefi besides stated that rug pulls and different frauds are a overmuch smaller occupation successful the crypto assemblage than hacks oregon exploits. Hacks were the “predominant cause” of losses successful Q1 2023, the study said, whereas each frauds combined (including rug pulls and different scams) made up lone 4.3% of full losses.

The archetypal 4th of 2023 has seen spectacular hacks and exploits, draining millions of dollars from decentralized concern (DeFi) protocols. On Feb. 1, the DeFi lending app BonqDAO was the unfortunate of an oracle hack, losing $120 cardinal successful crypto. On Feb. 17, decentralized speech aggregator Dexible was hacked for implicit $2 million. And connected March 13, Euler lost implicit $195 million of crypto successful the largest DeFi onslaught of the quarter.