NewsletterFake Metamask Wallet Fraud Rises in China Amid Defi and DEX Popularity
The Chinese government started one of the strictest crypto crackdown policies in September after an all-out ban on crypto mining in May. The September crypto crackdown policy deemed any crypto-related transactions as illegal and banned centralized foreign crypto exchanges from offering any services in mainland China. The ban on foreign crypto exchanges led to a surge in anonymous wallet downloads and the use of Defi and Dex.
The rise in popularity of DEX platforms has also led to a rise in the number of scams associated with it. A recent report from a prominent Chinese insider on Twitter Wu Blockchain said that the number of frauds related to fake metamask wallets has been on the rise. Thousands of investors have lost a significant chunk of their investment owing to these fake wallet scams. The report said,
“As centralized exchanges ban Chinese users, some users seek decentralized wallets. As a result, a large number of scammers forged fake metamask wallets for fraud, resulting in losses for many Chinese investors.”
As centralized exchanges ban Chinese users, some users seek decentralized wallets. As a result, a large number of scammers forged fake metamask wallets for fraud, resulting in losses for many Chinese inverstors.
— Wu Blockchain (@WuBlockchain) December 11, 2021
Many DEX platforms volumes surged significantly in the wake of the Chinese crypto ban and insiders had reported rising interest of Chinese investors to learn about Defi.
China to Continue its Crypto Crackdown Policy
The decentralized nature of cryptocurrency makes it near impossible to ban and thus governments who see it as a threat to its monetary policy often ban exchanges and platforms that help in trading crypto. However, the crypto ecosystem has grown significantly in the Dex and Defi market which is a multi-billion dollar industry now. Defi offers all banking facilities with added privacy thus making a popular choice.
Dydx, a relatively smaller DEX protocol broke daily trading volume records and surpassed the top DEX platforms such as Sushiswap by a significant margin. Many believed the trading volume was helped by the influx of new Chinese traders.
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more… to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Premium Partners
Delivered every day.
- Insights that move markets
- 100,000 active subscribers
Related Articles
- Coinbase Ends $2B BVNK Acquisition Talks Amid Stablecoin Race
- Arthur Hayes Buys UNI as CryptoQuant CEO Says Supply Shock ‘Inevitable’ for Uniswap
- Grayscale Launches Options Trading For Solana ETF as SOL Funds Record 10 Consecutive Daily Net Inflows
- Firelight Confirms November Mainnet as Flare TVL Rises and Xaman Introduces Smart Accounts
- Cardano News: Wirex Partners EMURGO To Launch First Ever ADA Card
- Ethereum Price Outlook as Whales and Institutions Boost Holdings — Can ETH Reclaim $4K Before Year-End?
- Can Dogecoin Price Hold Above $0.17 Amid Weekly Surge?
- Chainlink Price Could Crash as 3 Risky Patterns Form Amid Whale Selling
- Cardano Price Could Reclaim $0.7 After Key Stakeholders Add $204M in ADA
- Uniswap Price Soars 21% on Fee Switch and Token Burn Proposal— Eyes $15 Target
- Bitcoin Price Eyes Bulls as Crypto Market Structure Bill Draft Finally Drops
