Scam tokens claiming to be tied to the Damus app have been released by bad actors. The team has verified that there will be no Damus token, and users should be cautious of frauds.
Bad actors are taking advantage of the Damus app’s popularity by releasing a slew of bogus coins purporting to be affiliated with the decentralized social media platform. The bogus Damus coins were produced on the Ethereum and BNB blockchains. Some people have fallen for the frauds, however it is unknown how widespread the harm has been.
The Damus developers stated that the project lacks a token and “will never have a token.” The phony tokens first appeared a few days ago, shortly after the Damus software was introduced.
PeckShield, a cryptocurrency security firm, also tweeted about the fraud. It reported that it has discovered new Ethereum and BNB Chain constructions. It further noted that one of them seemed to be a honey pot trap, while others imposed a 100% sales tax.
Scammers are definitely attempting to capitalize on the success of Damus, which garnered mainstream news when it first launched. The project has continued to generate headlines, with several fresh developments in the last few days.
Damus is a Nostr protocol-based decentralized social networking platform. It has garnered funding from celebrities such as Jack Dorsey and has various advantages over centralized social media networks.
However, while it has gained widespread acclaim, that warm reception is not universal. Damus has been removed from China’s app store. The country has stringent controls over social media and communication channels, so it’s not unexpected that a decentralized social media program would be prohibited.
That hasn’t stopped the app from overtaking TikTok in Hong Kong, where it is presently the fourth most downloaded app.
Since its release, the app’s user base has rapidly expanded. It had 45,000 users on its first day alone, rocketing into the top 10 social networking applications ranking on the Apple app store.
Damus also revealed that in its upcoming iteration, users would be able to earn satoshis straight from their postings. It referred to a post in which one person earned roughly $40 for their post.
Hacks and frauds continue to plague the cryptocurrency sector, resulting in thefts of billions of dollars. The crypto sector lost about $4 billion to hackers in 2022, the largest total yet.
In 2022, there were numerous noteworthy hacks, notably the Lazarus Group’s Ronin Bridge assault. Attackers are very interested in DeFi protocols.