Scammers have discovered a new way to defraud Solana users by exploiting the blockchain's "Permanent Delegate" extension, which allows them to burn tokens shortly after a transaction. This feature, designed for legitimate purposes, has been manipulated by bad actors to burn victims' tokens within seconds of their purchase.

The scam hinges on the Permanent Delegate extension, which enables actions like burning or transferring tokens without limitation. While this feature can be beneficial in specific cases, Solana has acknowledged that it can be misused by scammers to manipulate tokenomics and inflate the token's value.

Security firms have warned that scammers might burn tokens for various reasons, such as creating chaos or reducing the token's available float to prevent price drops. This allows them to deceive users into thinking the token's circulating supply remains stable, enabling them to benefit from price manipulation on DeFi protocols. Despite these warnings, there are tools to detect when this extension is activated, and users are advised to be vigilant.

Source: https://coinpaper.com/5295/scammers-exploit-solana-token-feature-to-burn-users-crypto

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