What is the Pixiu Plate? How does the Pixiu Plate work?

Dec 15,2022
What is the Pixiu Plate? How does the Pixiu Plate work?

In the currency circle, many projects are Pixiu platters. It is really hard to see Pixiu platters for those who do not understand them. It depends on the contract code, but not everyone can understand it. Therefore, it is easy to be cheated. Once entering Pixiu platters, it will be really trapped. And now there are more and more such Pixiu platters. So, what is the Pixiu plate? How does it work? How to identify the Pixiu plate? Next, let's have a look.

What is the Pixiu Plate?

"Pixiu" is a kind of divine animal in ancient Chinese legend. It has a mouth but no anus, and can swallow everything (mostly gold jewelry) without leaking, so it is described as a kind of digital currency that people can only buy but not sell. The founder (attacker) of Pixiu Disk usually inserts a piece of code into the smart contract, and only the founder (attacker) of Pixiu Disk can sell or obtain digital currency. Because of its secrecy, even for experienced digital currency investors, it is not so significant and difficult to find. Because the price of the Pixiu market rose rapidly, everyone was impulsive to follow orders without thinking, and it was easy to be deceived. Once bought, it cannot be sold.

How does the Pixiu Plate work?

In the past, hackers would use smart contract vulnerabilities to steal digital currency. However, today, many attackers do not seek vulnerable contracts, but try to deploy contracts that include traps and loopholes to lure investors. This is what we call the Pixiu Plate. It generally appears on Ethereum and BSC. The fraud is generally carried out in three steps:

1. Attackers deploy smart contracts containing traps and bait promising high profits;

2. Attackers do their best to attract you to buy currency. The victim starts to buy, and the price can generally be seen rising rapidly. The victim may stay for a period of time until they think the price is up and try to cash in. However, by the time the victim discovered that it was impossible to sell the currency.

3. Attackers obtain funds invested by victims.

Nowadays, scams have developed rapidly and created more complex plans, such as:

The founder of Pixiu Disk (attacker) can turn on or off the sales function of currency. You can sell it when you buy it, but you can't sell it when the price is too high.

The fraudsters set up a wallet and put it into a certain amount of Ethereum based currency, and disclosed the private key to the public, so that everyone competed to withdraw money. Before the transaction is allowed, the customer needs to invest some gas fees. In order to obtain currency, you will deposit some ETH in your wallet. At this time: the smart contract deducts the gas fee and transfers it to the assistance wallet. In the end, the transaction will fail because the system cannot find the funds to pay the gas fee. Finally, no one can get the initial currency, but they lost their ETH used to pay gas fees.

Set the variable tax rate of the smart contract. This means that the founder of the contract is allowed to change the consumption, sale and even transaction tax of currency. Creators can set purchase or sales tax for currency. If they set high sales tax, it is almost impossible to sell. Once you sell, you will be deducted huge taxes.

How to identify the Pixiu Plate?

There are several ways to identify fraudulent currencies, although it is not 100% accurate.

1. View code on Etherscan

If the currency is ERC-20 currency, you can view the code on Etherscan. You can see if the code has undergone validation. If the code is not verified, it may be a fraud currency. The fraudster often does not reveal the code, because the code contains some problems and errors. The viewing steps are as follows: input the currency contract address on the block browser and click "Contract". If it says "Are you the contract creator? Verify and Publish your contract source code today!", It also means that the code has not been verified! The query method of BSC-20 currency is similar. You can check it on BscScan.

2. Query comments of Etherscan or BscScan

Query comments on Etherscan or BscScan. The victim may leave a comment on the Fraud Currency Evaluation tab. You can grasp people's views on a particular currency. However, the evaluation is not 100% correct. Some of the evaluations contain advertisements or false information. Please make your own judgment.

3. Check the currency transaction data on the blockchain browser

Check the currency transaction data on the blockchain browser, such as Etherscan, BscScan or other blockchain browsers (depending on the blockchain where the currency is located). Enter the Token contract address, and then query the transaction directory. If no wallet is being sold, or only one or two wallet are being sold. This is probably a pixiu plate.

4. Query CoinCarp.com

Query CoinCard Com, the total number of centralized exchanges (CEX) issuing the token can be found. If the currency is only released on the Decentralized Exchange (DEX), you should invest cautiously. The currency with good reputation will be released to CEX, but it is not absolute. Some early projects may only be released in DEX temporarily.

5. Check the amount of liquidity in the currency pool

Check the amount of liquidity in the currency pool at such decentralized exchanges as Uniswap, Pancake or other decentralized exchanges. Liquidity refers to the amount of money locked in smart contracts so that people can buy and sell on decentralized exchanges. If the liquidity is low (less than 50000 US dollars) and drops at a visible rate, it may be a project that cheats money or the project party has already run away.

Speaking of this, I believe that you have a certain understanding of what the Pixiu Plate is, how it works, and how to identify it. In general, digital currency, Defi and NFT are new things developed in blockchain applications in recent years. Some people think that encryption is just like a wild west, full of opportunities to get rich overnight, but also full of fraudsters and potential threats, just like the reality. Therefore, the editor also reminds investors that investment is risky and they should be cautious when entering the site.