Fake ERC20 Tokens

There are 77,774 ERC-20 Tokens. Any one can create one. It doesn’t take much technical ability to copy and past some code into Remix (an integrated development environment for deploying smart contracts on the ethereum network). When deploying the smart contract you decide how many coins to create and what the tokens are called.

Scammers have found a social exploit to take advantage of the enthusiasm people have around developmental projects like EOS, Polymath, FOTA, etc. . . I have been approached by scammers on Twitter, Telegram, Discord, and Slack. The story is always the same. They want to sell a fake ERC-20 token, implying that the token they are selling is the true — supported token. Chances are they are trying to swindle you.

If you do decide to make an OTC purchase make sure the person selling is reputable and that the tokens are coming from the contract address supported by the development project. Look up the contract on Ether-Scan. Make sure to do this also if your purchasing off a decentralized exchange like Ether Delta — where anyone can list an ERC-20 token.

If you do get scammed report it to the authorities. It is important to hold them accountable. Your funds can be tracked and when the scammer moves the coins on an exchange you can sometimes regain the lost funds.