Beware of Scams and Malicious Pools in On-Chain Dog Projects

Recently, the risks associated with dog tokens have noticeably increased. We are accustomed to the ups and downs, but the main concern is to avoid scams.

For instance, clicking on a scam link.

Crypto KOLs @insidecalls and @cladzsol recently revealed that during their routine chain scanning, they clicked on a meme coin homepage, only to be greeted by a hacker disguised "Cloudflare verification" prompt, instructing them to perform a ctrl V operation, which was actually a malicious script. After following the prompt to "complete verification," the victim's on-chain funds were stolen, with @cladzsol losing approximately $600,000 in assets.

BlockBeats has compiled findings that on several popular meme coin display pages recently, their homepages redirect to "Cloudflare verification" pages, which are actually phishing links. If users follow the prompts, their computer systems will download and execute malicious scripts, leading to asset losses.

This phenomenon is currently very prevalent, likely related to the delayed reviews by mainstream trading aggregation platforms like DexScreener. The current display logic of these platforms is to directly reference the "official website" or social media links filled in the token metadata. These fields can be updated by token creators or those claiming "community takeover" later. Hackers are exploiting this review loophole to turn meme coin display pages into new phishing attack "fishing grounds."

Another issue that has been discussed recently is the Uniswap V4 pool problem.

The trading aggregator 0x released an analysis report titled "Uniswap v4 hooks were a mistake." They pulled 84,163 hooks from 6 chains for inspection, and the results were shocking: over half (54.2%) were malicious contracts, and 26.4% were suspected to be malicious.

This malice results in retail investors losing money; for example, if they buy $1,000 worth of tokens, possibly $200 ends up in these hook addresses, akin to MEV attacks.

So how can retail investors protect themselves?

Set Low Slippage

This is likely the best defense for retail investors on-chain. With low slippage, malicious hooks cannot profit. Some low market cap tokens may indeed fail to execute with low slippage, but those with slightly larger market caps should be cautious.

Confirm "Minimum Received"

The estimated amount is simulated off-chain, and in front of malicious hooks, it can always turn into a blank check.

Check the minimum received amount; if this number falls below your psychological threshold, it’s best to cancel the transaction.

There are also some suggestions from Uniswap officials, but they are basically useless, stating to use the official Uniswap front end because it has a hook whitelist, and malicious ones won't pass the review. But who would trade on the Uniswap front end that has a poor user experience?

In summary, everyone should pay more attention while trading. The on-chain opportunities are abundant, but preserving capital is more important.

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