A Shiba Inu confidant has warned the community of a fake “Zama” token, revealing that the token is in no way related to any project.
The alert refers to a “honeypot scam” that is fraudulently utilizing the name of Zama, a reputable open-source cryptography organization with which SHIB is legitimately collaborating.
The scammer is attempting to profit from the excitement surrounding the partnership between Zama and Shiba Inu by tricking people into purchasing tokens that can be purchased but not sold.
Shiba Inu Asks Community To Stay Vigilant
The primary objective of Shiba Inu’s real collaboration with Zama is the deployment of fully homomorphic encryption (FHE), a powerful privacy approach that allows developers to work with protected data without ever decrypting it.
It’s a significant step in improving the security and privacy of the SHIB ecosystem.
Users are being advised by the SHIB team to remain vigilant, steer clear of dubious connections or contracts, and verify any claims that appear to be connected to Zama or the FHE program.
Being cautious can help keep the cryptocurrency safe, especially when scammers try to capitalize on the community’s enthusiasm.
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Zama CEO Warns of Token Scam
Dr. Rand Hindi, CEO and co-founder of Zama, took to X to warn users about the honeypot scam. The warning focused on a phony “Zama” coin that was introduced on the Binance Smart Chain (BSC) and attracted the interest of inquisitive cryptocurrency users at first.
In these types of frauds, investors are duped into purchasing a token, only to discover later that they are unable to sell it, so locking their money.
Scammers gradually drain victims’ cash while they are stranded. A false air of validity was added to the scam by using the name of a corporation associated with Shiba Inu’s privacy efforts, Zama.
The incident shows the significance of exercising caution and confirming the legitimacy of token sources.
Investors should always avoid unconfirmed smart contracts, even when they seem to be associated with reliable enterprises or technologies.
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Shiba Inu Team Confirms Fake Zama Token Has No Ties to Real Project
“The phony Zama token has nothing to do with the actual Zama cryptography project,” explained Hindi, a key member of the Shiba Inu team.
Respected in the blockchain privacy community, Zama is well-known for its contributions to fully homomorphic encryption (FHE), which enables processing of encrypted data without the need for decryption.
At present, Zama hasn’t introduced any official tokens. Therefore, Hindi explained that anything that purports to be a Zama initiative or asset is completely fraudulent and ought to be handled with warning.
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