Solidus Labs, a blockchain security firm, has announced the release of Token Sniffer API subscriptions for larger clients, such as decentralized exchanges and trading bots. Token Sniffer, which detects rug pulls and honeypots, is an essential tool for detecting two of the most common token scams. Rug pulls involve a new token that is sold to unsuspecting investors and then abandoned by its creators, leaving users with a worthless asset. Honeypots begin with a new token offering, but the perpetrators stop users from reselling their tokens. Other scams, such as impersonation scams, can also be detected with Token Sniffer.
Solidus Labs estimates that there is a new scam token created every four minutes and has found more than 250,000 rug pulls since 2021, impacting around two million users last year alone. Token Sniffer has been getting tens of thousands of unique visitors per day since DeFi started to take off in 2021.
To address the scalability issues that companies face when checking hundreds of tokens in a day, Solidus Labs has rolled out Token Sniffer API subscriptions for larger clients. The subscriptions allow customers to programmatically run sniff tests on more than two million tokens across 12 blockchains, including Ethereum, BNB Smart Chain, Polygon, Arbitrum, and Optimism.
The new API subscriptions will be offered in two tiers, with prices ranging from $100 to $200 per month. Solidus Labs’ COO Chen Arad said that the web tool will remain free for anyone content to check tokens one at a time. The company does not want safety for the average decentralized finance user locked behind a paid API endpoint.
Solidus Labs’ founders include Arad, a former journalist and university lecturer, and ex-Goldman Sachs engineers Asaf Meir and Praveen Kumar. The company has the support of former Commodities Future Trading Commission Chair Chris Giancarlo and former SEC Commissioner Troy Paredes.