How do you spot a fake crypto token?

You spot a fake crypto token by checking its contract address, not its name. On networks such as Ethereum, anyone can create a token and call it anything, including the name and symbol of a famous coin. MetaMask's help center puts it plainly: anyone can mint a token and name it however they like. The real token is the one at the address its issuer publishes.

How do you identify fake tokens?

A few checks catch most copies:

1. Match the contract address. Find the official address on the issuer's own site. Circle, for example, lists the address of USDC on each blockchain it supports, about 40 mainnets, and tells developers to verify every address. The address differs by network, as what is a token contract address explains.
2. Look the token up on a block explorer. Etherscan shows a token reputation label. Suspicious means unresolved reports of scams or misrepresentation, and Unsafe is its most serious warning. Etherscan says even an OK label is not an endorsement and that Unknown says nothing either way.
3. Check the project's age and story. MetaMask advises caution with assets that appeared suddenly and are rising fast.
4. Confirm before swapping. MetaMask says to double-check that the token in a swap is the one you meant to trade.

What is a copycat token?

A copycat token imitates a well-known or newly launched asset to catch people searching for it. Launch days are prime time. CoinDesk reported on August 8, 2023 that more than 66 fake PYUSD tokens had appeared on Ethereum, BNB Chain, Base and other networks after PayPal announced its stablecoin, according to DEXTools data. Creating one and listing it on a decentralized exchange cost a few cents. Some could not be sold after purchase, and some creators removed all the liquidity within hours, leaving buyers with worthless tokens. The real stablecoin is described in what is PayPal USD.

How does a fake token scam work?

There are two common patterns.

Fake listings. A scammer creates a token with a famous name, adds a little liquidity on a DEX and buys much of the supply to make it look popular. Buyers may find the token cannot be sold, as in a honeypot, or that the creator pulls the money out.

Airdropped bait. Unknown tokens appear in a wallet unasked. MetaMask says no one can reach your funds just by sending you tokens. The danger comes next: trying to sell the token, or opening its page on an explorer, may lead to a site that asks you to approve a transaction, grant token access or enter your Secret Recovery Phrase. MetaMask's advice is to leave such tokens alone and never share a recovery phrase with anyone.

If a token is not in your wallet's trusted token list, MetaMask says that alone is a reason for caution.