  This article presents an empirical investigation into the determinants of
total revenue generated by counterfeit tokens on Uniswap. It offers a detailed
overview of the counterfeit token fraud process, along with a systematic
summary of characteristics associated with such fraudulent activities observed
in Uniswap. The study primarily examines the relationship between revenue from
counterfeit token scams and their defining characteristics, and analyzes the
influence of market economic factors such as return on market capitalization
and price return on Ethereum. Key findings include a significant increase in
overall transactions of counterfeit tokens on their first day of fraud, and a
rise in upfront fraud costs leading to corresponding increases in revenue.
Furthermore, a negative correlation is identified between the total revenue of
counterfeit tokens and the volatility of Ethereum market capitalization return,
while price return volatility on Ethereum is found to have a positive impact on
counterfeit token revenue, albeit requiring further investigation for a
comprehensive understanding. Additionally, the number of subscribers for the
real token correlates positively with the realized volume of scam tokens,
indicating that a larger community following the legitimate token may
inadvertently contribute to the visibility and success of counterfeit tokens.
Conversely, the number of Telegram subscribers exhibits a negative impact on
the realized volume of scam tokens, suggesting that a higher level of scrutiny
or awareness within Telegram communities may act as a deterrent to fraudulent
activities. Finally, the timing of when the scam token is introduced on the
Ethereum blockchain may have a negative impact on its success. Notably, the
cumulative amount scammed by only 42 counterfeit tokens amounted to almost
11214 Ether.
