A mysterious DeFi and NFT protocol, ZTZ DAO, ends up being a honeypot scam. Here is how many gullible DeFi investors might have lost their crypto riches.
ZTZ DAO's token is a honeypot: PeckShield
Today, April 19, 2022, an automated detecting system by PeckShield cybersecurity provider has revealed that the BSC-based contract of ZTZ token is most likely a honeypot scam.
Honeypot is a class of computer scams focused on stealing users' money and data. In crypto, it usually means the contract or protocol that only allows users to inject liquidity but not withdraw it.
According to Dex.guru tracking system, ZTZ token is changing hands at $0.00000027, or down 99.97% in 24 hours. More than 5,000 crypto users still hold ZTZ despite the honeypot announcement.
Despite having nothing but a landing page, a BSC-based token, a Twitter account and a Telegram group, ZTZ DAO promoted itself as a "high-speed commercial decentralized public chain based on DAG technology, aiming to become the underlying business infrastructure of the Metaverse in the future."
Waiting for Honeypot 2.0?
Some crypto analytics services displayed that exactly one week ago, on April 12, 2022, the ZTZ/BNB price rocketed more than 700% in an hour.
It is interesting that both the website and the social media of the scam project are active: amid aggressive comments from scammed investors, the team is going to unveil "mapping and screenshots" for ZTZ2.0.
As covered by U.Today previously, honeypot scams are typically associated with various spin-offs of Dogecoin (DOGE) and Shiba Inu Coin (SHIB).