Key Highlights
- A suspected scammer claiming to be the FARTCOIN developer launched the $HOODFART token on Robinhood Chain.
- Relay Protocol warned that scam tokens on Robinhood Chain can disappear from users’ wallets after purchase, leaving them with lost funds.
- The launch comes as traders face rising risks from fake tokens, honeypots and wallet drainers on the newly launched Robinhood Chain.
A suspected crypto scammer claiming to be the developer behind FARTCOIN has announced a new $HOODFART token on Robinhood Chain, promising to spend more than $50,000 promoting it and asking users to submit their wallet addresses for a potential airdrop.
The account, named “Fartcoin Dev” on X, said it was returning after previously launching FARTCOIN, a meme coin that it claimed reached a market capitalization of more than $1 billion and was listed on major crypto exchanges.
The account then announced that it would launch $HOODFART and push it even harder than FARTCOIN.
“I am back as promised!” the account wrote. “Last time I launched a coin, $FARTCOIN, it ran to 1B+ and was listed on all major exchanges.”
Robinhood Chain faces scam concerns
Meanwhile, this is coming at a difficult time for traders on Robinhood Chain. Robinhood launched the public mainnet of the blockchain on July 1, bringing a new network where users can trade tokens and carry out low-cost swaps.
But the same open system that allows new projects to launch easily has also attracted scammers.
In short, anyone can deploy a token on a permissionless blockchain, meaning users may come across fake projects, copycat coins and tokens created to trick them into losing money.
Relay warns that some scam tokens can disappear
For instance, Relay Protocol, a multichain payments and bridging network, warned on July 9 about a surge in scam tokens on Robinhood Chain. The protocol said some of the tokens were designed to disappear from users’ wallets shortly after they were bought.
“We’re aware of reports of tokens disappearing from wallets after purchase on Robinhood Chain,” Relay said.
The protocol explained that some scam tokens can briefly appear in a buyer’s wallet after a transaction before being moved back to the person who created the token. In such cases, the buyer has already spent money but is left without the tokens they thought they had purchased.
Relay also said the issue was not caused by private keys being stolen or users’ entire wallets being hacked. Other assets in an affected wallet remain safe, with the problem linked to purchases of malicious tokens.
Other users have also reported losses involving scam tokens and suspicious transactions on Robinhood Chain. Some researchers have warned about honeypot tokens, wallet drainers and smart contracts that can take advantage of user approvals.
Robinhood says its wallet uses Blockaid for scam warnings
A Robinhood spokesperson recently told The Crypto Times that Robinhood Wallet works with Blockaid to warn users about known or suspected scam tokens and filter tokens that receive a malicious rating.
“Robinhood Chain is permissionless. This is a common issue across permissionless chains. It’s not specific to Robinhood Chain,” the spokesperson said.
In short, this launch of $HOODFART adds another warning for traders looking for popular names on the new network. By using the FARTCOIN name and claiming a connection to its earlier success, the account is seeking attention from users who may already recognize the token.
Relay has urged users to trade verified tokens from trusted sources and warned that money spent on confirmed scam purchases may not be recoverable.
Also Read: NOXA Goes Dark After $12M in Fees, Exposing Robinhood Chain’s Single Point of Failure
