Red Alarm flags hundreds of risky dapps on BNB Chain

DappBay, a web3 dApp store for users on the BNB Chain, has flagged over 100 risky decentralized applications (dapps) in its recent update. 

BNB Chain shared the findings on X (formerly Twitter). See below.

BNB Chain launched DappBay in July 2022, allowing users to discover new web3 projects while being kept abreast of their risk levels in real-time.

At the heart of DappBay is its Red Alarm component, a risk screening tool that can help identify possible rug pulls and scam projects by checking logic flaws or fraud risks in smart contracts.

This tool regularly updates its list with dapps and smart contracts that have been assessed as scams or deemed to carry an extraordinarily high level of risk.

You might also like: Binance ‘willfully failed’ to report over 100k transactions linked to fraud and scams, U.S. Treasury says

Risky dapps

One of the prominent names on DappBay’s list of risky dapps is Genesis Universe, a non-fungible token (NFT) card exploration game built on the BNB Smart Chain. In this game, players explore and fight in a new world, following the increasingly popular play-to-earn approach.

However, its presence on the Red Alarm list points to possible risks in its operation, therefore advising caution for both users and investors.

Another notable addition to DappBay’s Red Alarm list is DeXe DAO Studio, categorized under tools and utilities and marked with a “significant risk” level. 

This dapp reportedly supports the development of decentralized autonomous organizations (DAOs), highlighting the importance of active, valuable member involvement and expertise. However, despite its ambitious goals, the assigned risk level indicates possible drawbacks or issues that users need to consider.

Web3 Pilot, a first-in-first-out defi investment platform, was identified as a high-risk dapp. Per Red Alarm’s indication, the platform’s main risk revolves around it being a possible Ponzi scheme, misleadingly enticing investors with the allure of unusually high returns.

Other decentralized applications highlighted in Red Alarm’s list include QuickPay, Silo, and Defi Ujm. The first two are categorized as Ponzi schemes, while the third is suspected to be a phishing website.

Read more: Staying safe in web3: your guide to dapps security
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