Since July, products similar to Ponzi schemes have reached the top of the charts alongside decentralized applications running on the world’s second-largest blockchain. If the number of users and transaction volumes are high, the risk level is just as high for those who are using these applications.
According to Coindesk, Team JUST, the group of anonymous developers behind the infamous gambling dapp FOMO 3D, warned last week that what looked to be a near identical copy of its game was eating up one-third of the network’s total computational power, raised over $7 million in ETH within the span of seven days. Team JUST has gone on record both publicly and in private communications with CoinDesk to allege the imposter game as being a Chinese mobile app called LastWinner supposedly created to “trick” users by displaying false, bot-driven game activity. To elaborate, Team JUST purports that the game essentially uses its own ether, 200,000 to be exact, as a means of fueling thousands of transactions that are carried out by computer bots. The goal is to give the appearance of a highly popular and legitimate gambling dapp, thereby luring users to engage with their own ether in the hopes of winning big.
One of the lead designers in Team JUST, who goes by the pseudonym “Justo_Bot,” went so far as to issue statements in a channel-wide Discord post Tuesday, warning users that LastWinner might be run by criminals.
“The scale of this wallet, the scale of these bots. The amount of sheer gas being used. I genuinely think you’re probably looking at a crime syndicate running this in China to scam people on a scale the ethereum network has never seen before…It’s very bad.”
Others are concerned as well – alarms were raised by users and analysts on various online channels over the frenzy of the transaction activity caused by the new gambling dapp called LastWinner. According to Coindesk.com, Amberdata, a blockchain monitoring and analytics firm, explained to CoinDesk that as a result of “the clone of the FOMO 3D gambling app” the ethereum blockchain has been under a heavy load.
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