As long as the money is moving in the crypto market, scams will stay around taking any possible opportunity to take away users’ money.

Recently, two small coins collapsed shortly after they were listed on the decentralized platform Uniswap, after investors poured money into them.

Fraudulent projects were first touched upon in The Block’s website The Nugs.space project that manages the NUGS coin and the Nexeum Protocol project that represents the NEXE coin were mentioned, both of which have disappeared for the time being.

The management of the China-based Nugs.space project explained that the project was halted due to a smart contract error, as it claimed on social media that the flaw could not be fixed.

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The same team indicated that the NUGS coins will remain permanently unchanged on Ethereum, and the project currently contains more than 100 million NUGS coins.

NUGS, according to its website, was supposed to be a great haven within the cryptocurrency arena.

The project’s working mechanism is to harvest 2% of the NUGS coins, with 1% burning permanently and using 1% to create a daily lottery held at 04:20 CST.

The project’s website states that NUGS should not be considered an investment, but on social media users have revealed that they have invested in the coin.

Ethereum blockchain data shows millions of NUGS coins flowing into the decentralized exchange platform Uniswap, most likely representing the coins that users are trying to sell.

NUGS Coin started trading on Uniswap right after its listing, but the coin’s trading volume quickly declined.

I thought I’d cripple a new coin listed tonight but it looks like we weren’t so lucky. NUGS dollars Listed between 15 and 25x right off the bat
Don’t touch it

– Opportunity.exe (ExeOpportunity) August 10, 2020

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It appears that another scam project, NEXE, was exposed to the same situation as NUGS and only shortly after it was listed on Uniswap.

Where the website of the project was deleted and all accounts on social networking sites were deleted, and through the available data it appears that the NEXE project was using a kind of buyback program to attract investors.

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Data from Uniswap.info shows that the price of the NEXE coin fell by 99.24% shortly after the listing on Uniswap, going from $0.13 to $0.27, before dropping to $0.0028 before its liquidity dried up completely.

Notably, anyone can create a coin and token and list it for trading on Uniswap, which is reminiscent of the hype surrounding some of the ICO bubble-like coins of 2017.

Therefore, caution and investigation of currencies and those who stand behind them and their pursuit is necessary before the turnout and purchase of any currency.

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