Uniswap is a popular decentralized exchange (DEX) built on the Ethereum blockchain that allows users to trade ERC-20 tokens without an intermediary. However, like many platforms in the crypto space, Uniswap has attracted its fair share of scams and malicious actors looking to profit off unsuspecting users. While Uniswap itself is considered secure, users still need to be vigilant to avoid falling victim to scams when using the platform.
Verify Token Addresses
One common scam tactic on DEXs like Uniswap is impersonating legitimate projects by creating fake tokens with similar names or symbols. For example, a scammer may create a token called UniSwapToken in an attempt to mislead people into believing it’s affiliated with the real Uniswap.
Always verify if you have the correct contract address of any token before trading it on Uniswap. Cross-check the address on Etherscan to ensure it matches the legitimate project. Also, beware of fake sites posing as Uniswap designed to trick you into connecting your wallet and draining your funds. Only connect your wallet to the official Uniswap site at app.uniswap.org.
Double-checking every character of a token address before hitting that swap button is a must. Scammers often register addresses that are just 1 or 2 characters different than the real one in hopes that people won’t notice. Going slow can save you from making an expensive and irreversible mistake.
Research New Tokens Thoroughly
When a new token launches on Uniswap, it can be difficult to tell whether it’s a legitimate project or a scam. Scammers frequently try to take advantage of the hype around new DeFi tokens by quickly pushing out scam copies to trick frenzied buyers.
Always do your own research before buying any new token you haven’t heard of before. Check that the project has a website, whitepaper, and social media presence. Research the developers and their backgrounds. If you can’t find much information or history on a token, it should be a major red flag.
Beware of tokens on Uniswap promising extremely high yields as those are often “rug pulls” designed to attract victims. Also, avoid tokens asking you to connect your wallet just to “claim” free tokens—this is always a scam tactic to drain your crypto.
Be Wary of Fake URLs and Profiles
Scammers will also typically promote their fake Uniswap tokens on social media platforms like Twitter. Watch out for promoted posts and new accounts claiming to represent projects you’re interested in—these are often scammers impersonating real teams. Always click through to the website being linked rather than just copying an ETH address or token contract from a tweet or message. Fake URLs are common, so verify you’re on a legitimate site before connecting your wallet.
Also beware of fake customer support accounts on Twitter. Uniswap does not publicly offer direct messaging customer support on Twitter. Anyone claiming to offer official Uniswap support is an imposter account.
Protect Yourself from Uniswap Scams
While scams are an unfortunate reality across DeFi, there are steps you can take to avoid becoming a victim on Uniswap:
Use Small Test Transactions
Never swap your full amount of a token in one single transaction. First, try a small test transaction to verify you’re getting the correct tokens at the estimated rate. Start with just a few dollars worth to confirm it goes through as expected before doing larger amounts. This way if something goes wrong or you run into a scam token, you’ll only lose a tiny amount discovering it.
Set Transaction Deadlines
To prevent becoming a victim of a scammy token looking to rug pull liquidity, set a transaction deadline on Uniswap before hitting that swap button.
The deadline prevents the transaction from processing if it takes longer than a set amount of time, preventing losses from tokens designed to stall transactions and drain funds.
Use Defi Safety Tools
Platforms like DefiSafety can scan Uniswap tokens and return risk scores to identify potential scams or unsafe projects. Addresses are checked against databases of known scams and flagged accordingly.
These tools provide an additional layer of protection when trading risky new tokens. Never trust an audit 100%, but using Defi safety checks can alert you of possible scams you may have overlooked.
Staying safe from scams on Uniswap requires careful verification, research of any unknown tokens, and enabling protective measures around transactions. While the platform is decentralized and trustless, users still must exercise caution and practice good cyber hygiene to avoid attacks from persistent crypto scammers. Paying attention to the warning signs and using available safety tools can help users safely tap into Uniswap’s benefits while steering clear of malicious actors.
