Enabling the growing adoption of decentralized trading, the new programmatic token security solution was built to support decentralized exchanges (DEXs), traders, trading bot operators and other investors with a simple and effective validation interface to protect against more than 250,000 - and growing - rug pull scams
NEW YORK, NY / ACCESSWIRE / March 9, 2023 / Crypto and DeFi market integrity and risk monitoring leader Solidus Labs announced today the launch of the new TokenSniffer API. Built to combat the rug-pull epidemic impacting 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 affiliated with scam 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 on the risk investors will be "rug pulled" by a token's deployer. Smell Test allows automated risk analysis, with more extensive risk monitoring capabilities available via HALO - Solidus' crypto native 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 rise of decentralized trading while mitigating its new risks, the TokenSniffer API will allow platforms and traders to easily monitor for, detect, and avoid fraudulent tokens in an automated manner at scale, providing the highest standards of user protection and risk management available in DeFi today. Simultaneously, Solidus will continue offering individuals complimentary access to TokenSniffer.com where they can test one token at a time, as part of the firm's commitment to providing DeFi risk assessment tools necessary for safely promoting greater adoption.
DeFi activity has grown substantially over the past two years. Since early 2021, the total value locked (TVL) in DeFi platforms has grown 2,100 percent, the number of DeFi users has grown 700 percent, and DEXs have gained on CEXs in terms of spot trading volume. This increased activity and the potential of DeFi have been threatened by an increase in DeFi scams and fraud: In October 2022, the Wall Street Journal and Gartner 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. Rug pulls are estimated to have hurt close to two million investors in 2022.
"As more users seek out DeFi platforms, the need to be able to point out smart contract scams in real-time and assess for manipulative behavior is vital for consumer protection and the industry's growth," says Asaf Meir, Solidus' Founder and Chief Executive. "This new product is central to Solidus' vision - enabling DeFi's potential by simplifying and mitigating its risks, shedding light on manipulative and abusive behavior, and accelerating safe adoption."
The TokenSniffer API is available for purchase now on 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 surveillance, transaction monitoring, and threat intelligence. Our mission is to enable safe crypto trading throughout the investment journey across all centralized and DeFi markets. As the founder of industry-leading initiatives like the Crypto Market Integrity Coalition and DACOM Summit, and in everything we do, Solidus is deeply committed to ushering in the financial markets of tomorrow. Crypto exchanges, financial institutions and regulators globally rely on Solidus HALO - our real-time, comprehensive, testable, and future-proof platform. Safeguarding their business from known forms of market abuse and a plethora of emerging crypto-specific risks, we enable our clients to grow faster - and safer. To learn more, please visit: https://soliduslabs.com.
About Token Sniffer
Token Sniffer is a smart contract scam detector that has been integrated into HALO - Solidus' crypto native market integrity suite. Cited by the U.S. 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