What Is Issuing a Coin? Seeing the Blockchain Fungible Token Scam Clearly in One Article

1.3.1 Bytecode#

The code is converted by a compiler (such as solc) into a long string of hexadecimal characters like 6080604052348015610010.... That’s what actually runs inside the Ethereum Virtual Machine, the EVM

1.3.2. ABI, Application Binary Interface#

This is a JSON file, essentially a README. It tells wallets and exchanges: this contract has a function called transfer, which takes two parameters, one an address and one an amount

1.4.1. Sending a Special Transaction#

Issuing a coin on mainnet is essentially sending a transaction to the blockchain’s empty address 0x0

• **Payload: that’s the Bytecode generated above
• Gas Fee: the miner fee, which I prefer to call fuel. On mainnet, this step costs real money (ETH/SOL). Because you’re occupying storage space on nodes worldwide, you have to pay for it

1.4.2. On-Chain Confirmation#

Miners/validators package your transaction and write it into a block
Once written, the EVM executes your Constructor, which usually does two things:

• Mint: writes 1145140000... coins directly under your (the deployer’s) address
• Generate an address: computes a brand-new contract address from your wallet address and transaction count

At this point your coin has been born. It lies quietly in some block on the blockchain, but its value is still 0, because it isn’t in anyone’s wallet yet, nor on any exchange

1.5.1 Etherscan#

You upload your source code to the block explorer Etherscan
Etherscan compiles your source on the spot, and if the resulting bytecode matches the on-chain bytecode exactly, it gets a green checkmark

Passing verification means showing your hand to the whole world. Of course, auditable doesn’t mean safe — plenty of sophisticated leek-harvesting logic (hidden fee rates, blacklist mechanisms) is open source and ordinary leeks still can’t understand it

3.2.1 Front-Running#

Say you notice CEPATO coin looks promising and decide to go heavy with 10 ETH

1. A bot spots your large buy order while scanning the mempool. It quickly calculates: once this buy order fills, it will push the coin price up 5%
2. The bot immediately sends its own buy order for the same coin, but its gas fee is 1 dollar higher than yours
3. The miner sees the bot paying more and puts the bot’s transaction ahead of yours.
4. *The result:
   • Block N: the bot buys -> price pushed up 5%
   • Block N+1: you enter -> you’re forced to buy in at a price 5% higher
   • Profit: the bot sells right back, risk-free arbitrage on that 5% spread

It’s like you’re queuing in the cafeteria for the last portion of braised pork; you’ve just swiped your card when a bot rushes over, gives the lunch lady 5 extra yuan to snatch the meat away, then turns around and sells it to you at a markup

3.2.2 Sandwich Attacks#

This is the advanced version of front-running, and it eats from both ends

Say you want to buy a large amount of CEPATO coin, and you’ve set 10% slippage (meaning you’ll accept a fill price at most 10% worse than the current one)

The bot’s procedure is as follows:

1. The first bite: The bot detects your slippage tolerance, sends a huge buy order with gas maxed out, and forcibly cuts in line ahead of you to buy
   • The coin price spikes instantly, stopping right at the 10% slippage limit you set
2. The middle layer: It’s your transaction’s turn to execute. Since the price is still within your tolerance (even though it’s the peak), your transaction fills
   • Your large buy pushes the already-spiked price up a bit further
3. The third bite: The bot sends a sell order with gas set slightly lower than yours, selling right after you
   • The bot bought at the lowest point and sells at the highest point that you pushed it to

Your transaction is effectively sandwiched between two bot transactions. Every cent of premium you pay on the buy becomes the bot’s profit. This is why retail investors on-chain often feel like the price drops the moment they buy

3.3.3 Honeypot#

If the attacks above are bandits from outside, then a Honeypot is a trap set by the project team (that’s you)

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// 这是一个简化的貔貅逻辑
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function _beforeTokenTransfer(address from, address to, uint256 amount) internal virtual {
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    // 如果是卖出操作（to 是 Uniswap 池子地址）
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    if (to == uniswapPair) {
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        // 只有庄家（owner）能卖，其他人报错
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        require(from == owner, "弱智，你被骗了");
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    }
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}

Retail investors watch the chart soar (because you can only buy, never sell), see their account balance turn into millions of dollars, click sell in excitement, and the wallet pops up a red Transfer Failed

3.3.4 Pulling the Pool#

As mentioned earlier, after adding a pool you get an LP Token
As long as this credential is still in the market maker’s hands, the market maker is the president of this bank

• The harvest process:
  1. The market maker issues a coin and adds a pool of 1 ETH
  2. Everyone charges in like crazy; the pool now holds 100 ETH
  3. Late at night, the market maker opens Uniswap and clicks 移除流动性
  4. The outcome:
     • The market maker takes the 100 ETH in the pool
     • Retail investors are left holding a pile of CEPATO Coin
     • At this point the retail coins still exist and aren’t locked, but there’s nowhere left to exchange them. The price instantly goes to zero (the divisor becomes 0)

Some market makers will say: I locked the LP Token on a third-party platform, I’m safe
In fact, he may have locked it for 1 month. A month later it unlocks automatically, right when the project’s hype has cooled and the leeks have let their guard down the most, and then he pulls the pool

3.3.5 The Permission Backdoor#

• The coin price rises to 100 yuan each, with a total supply of 1 million
• The market maker calls the hidden mint() function in the contract (only the Owner can call it) and prints 100 million coins out of thin air for himself
• Dumping: The market maker takes these 100 million zero-cost coins and sells them all into the pool at once The money in the pool is drained, and the coin price instantly becomes 0.0000001