# Token Spammers, Rug Pulls, and SniperBots: An Analysis of the Ecosystem of Tokens in Ethereum and the Binance Smart Chain (BNB)

**Authors:** Federico Cernera, Massimo La Morgia, Alessandro Mei, Francesco Sassi  
**arXiv:** [2206.08202](https://arxiv.org/abs/2206.08202)  
**Date:** 2022-06-16  
**Summary page:** https://www.summarizepaper.com/en/paper/2206.08202v1/

## Key points

- Federico Cernera, Massimo La Morgia, Alessandro Mei, and Francesco Sassi perform a comprehensive longitudinal analysis of Ethereum and BNB Smart Chain
- The study focuses on the ecosystem of tokens and liquidity pools on these blockchains to highlight similarities and differences between them
- Approximately 60% of tokens are active for less than one day
- Only 1% of addresses create an anomalous number of tokens ranging from 20% to 25%
- Token spammers use short-lived disposable tokens to perpetrate exit scam frauds serially
- A new kind of trader bot is involved in these activities, detected by the authors who quantify their activity in exit scam operations
- The study provides valuable insights into the functioning of blockchain ecosystems by analyzing token creation patterns, liquidity pool dynamics, fraudulent activities such as exit scams, and trader bots' involvement in such activities.
- This research highlights critical issues related to blockchain security while providing a better understanding of how token ecosystems operate on different blockchain platforms.
- It can help developers improve their security measures by identifying potential vulnerabilities in existing systems while also informing investors about risks associated with investing in certain types of tokens or projects.

## Summary

In their paper titled "Token Spammers, Rug Pulls, and SniperBots: An Analysis of the Ecosystem of Tokens in Ethereum and the Binance Smart Chain (BNB)," Federico Cernera, Massimo La Morgia, Alessandro Mei, and Francesco Sassi perform a comprehensive longitudinal analysis of the two most popular blockchain platforms - Ethereum and BNB Smart Chain. The authors delve into the ecosystem of tokens and liquidity pools on these blockchains to highlight similarities and differences between them. The study estimates the lifetime of tokens on both platforms and reveals that approximately 60% of tokens are active for less than one day. Additionally, the authors find that only 1% of addresses create an anomalous number of tokens ranging from 20% to 25%. The authors also present an exit scam fraud that is prevalent on both blockchains. They discover that token spammers use short-lived disposable tokens to perpetrate these frauds serially. Furthermore, the authors introduce a new kind of trader bot involved in these activities. They detect their presence and quantify their activity in exit scam operations. This study provides valuable insights into the functioning of blockchain ecosystems by analyzing token creation patterns, liquidity pool dynamics, fraudulent activities such as exit scams, and trader bots' involvement in such activities. Overall, this research highlights some critical issues related to blockchain security while providing a better understanding of how token ecosystems operate on different blockchain platforms. It can help developers improve their security measures by identifying potential vulnerabilities in existing systems while also informing investors about risks associated with investing in certain types of tokens or projects.