A crypto investor recently discovered an unfamiliar token labeled “ETHG” in his Uniswap-linked wallet with a valuation showing over $420,000.
The investor confirmed he had never purchased or interacted with this token, raising concerns of a scam. Screenshots of the token showed that ETHG, listed as “Ethereum Games,” was flagged as malicious by Blockaid, an on-chain security platform.
The token’s price, shown at $0.211 per unit with a balance of 2 million ETHG, was calculated to appear extremely valuable. However, this displayed value is meaningless since the token lacks actual liquidity.
The price is derived by multiplying the last recorded trade price by the token balance. This can easily be manipulated by scammers through wash trades or artificial price setting on illiquid tokens.
Security Expert Warns Against Interacting
The investor called on Vet (@Vet_X0), a validator on the XRP Ledger (XRPL), for an explanation. Vet weighed in, warning the user not to engage with the token or any associated websites. According to him, interacting with these kinds of tokens on Ethereum opens the door to dangerous exploits.
Vet emphasized that smart contract-based blockchains like Ethereum are vulnerable to these scams because they allow tokens to be distributed freely to wallets without permission. Once the token is in a wallet, the scam relies on the user’s curiosity or attempts to swap it, during which malicious smart contract calls can compromise the wallet’s assets.
This is unfortunately the downside to blockchains that handle everything with smart contracts like ETH. Do NOT, under any circumstances, interact with these tokens or the sites linked with it.
You're risking dangerous approval exploits to empty your whole wallet (infinite…
— Vet (@Vet_X0) April 18, 2025
XRP’s Advantage Over ETH
Vet contrasted this risk with the XRPL architecture, highlighting its native support for issued tokens without relying on smart contracts. On the XRPL, users must explicitly trust a token issuer through a trustline before receiving any token.
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Additionally, users can easily zero out or remove trustlines at will without granting token-level approvals or exposing their wallet to contract calls. XRP has outperformed Ethereum for five months, and an advantage like this gives investors more reasons to choose XRP.
Will XRP Surpass Ethereum?
This incident reinforces the need for users to understand the technical risks associated with smart contract permissions. It also highlights the advantages of blockchain architectures like the XRPL that prioritize user-controlled token interaction and simplified asset management.
Vet commended XRP’s creators, explaining that all functions on the network are limited and known to users in advance, minimizing the attack surface for exploits seen on Ethereum. Experts believe XRP can dethrone ETH as the top altcoin in 2025, and protection from scammers is a crucial advantage that could help it achieve this goal.
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.
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