SHIB Community Alert: Top Ally Warns of Tricky Honeypot Scam

A top ally of the Shiba Inu (SHIB) project has warned of a "honeypot scam" using the name of the open-source cryptography company Zama. Shiba Inu is working with Zama to implement fully homomorphic encryption (FHE), a privacy solution that allows developers to use data on untrusted domains without needing to decrypt it.

Dr. Rand Hindi, CEO and co-founder of Zama, recently took to X to issue a warning that concerns the Shiba Inu and crypto community. "This is fake. There is no Zama token yet. Don’t get rekt, guys," Hindi wrote, referring to an alert shared by a community member on the fake Zama token.

The alert concerns a fraudulent "Zama" token based on Binance Smart Chain (BSC), which caught the interest of the crypto community. However, eagle-eyed community members were quickly able to spot the scam, described as a "honeypot scam." In this type of scam, buyers can purchase the token but are unable to sell, trapping funds and draining wallets over time.

Hindi clarified that the fake Zama token is not affiliated in any way with the real Zama cryptography project, which focuses on fully homomorphic encryption (FHE). Despite Zama’s growing presence in the crypto and privacy space, no official token has been launched, and any claim suggesting otherwise is a fraudulent attempt to exploit the brand’s reputation.

Other warnings issued

Susbarium, a Shiba Inu-focused X account dedicated to exposing scams and protecting the Shiba Inu community, recently warned the SHIB community about fake Exodus emails flooding inboxes with the subject line "Exodus Wallet: Keep It Active."

Susbarium warned that this is a fraud designed to steal user funds and urged the Shiba Inu community not to fall for it. This is because a wallet would never need to be verified to keep it active. Also, the real Exodus wallet support will never ask for their seed phrases.

To be safe, cryptocurrency holders should always visit the official website, which clearly states, "No phone support." They should also avoid fraud hotlines and bots. They should also avoid sharing their keys.