The cryptocurrency community is on alert with the announcement of the listing of the new BRC-20 SATS token on the OKX broker. As the platform enthusiastically announces the asset’s listing, educators and industry experts warn of potential risks associated with the project.
BitdovBitcoin teacher and co-host of Bitcoinheiros, voted the best Bitcoin channel on YouTube in Brazil in 2023, expressed serious concerns about SATS.
In a tweet published on Wednesday afternoon (20), Bitdov described SATS as a “affinity scam” and advised his followers to keep their distance and warn friends about possible scams involving the digital asset.
The educator criticized SATS for its similarity to fractions of Bitcoin (BTC) known as “satoshis” or “sats,” claiming that the token’s name could be misleading and appear to be a scam.
“SATS It is clearly an affinity scam, keep your distance and warn friends to be careful of scams involving BRC-20. Bad like all ‘crapto’, but even more so because of the misleading name. It borders on fraudulent due to the fact that sats is a fraction/denomination of BTC.” – Said the teacher.
In addition to OKX, the SATS token is also listed on Bitget, Kucoin, and Gate.io.
🚨⚠️ $SATS It is clearly an affinity scam, keep your distance and warn friends to be careful of scams involving BRC-20.
Bad as all nonsense, but even more so because of the misleading name. It borders on fraudulent due to the fact that sats is a fraction/denomination of BTC. https://t.co/NPxMzxnFaP
— ₿it⚡️Dov (@bitdov) December 20, 2023
SATS
OKX, known as one of the largest cryptocurrency exchanges in the world, has announced the listing of SATS on its spot trading markets, and according to the exchange’s statement, the token has a total supply of 2.1 quadrillion units – the same number of satoshis as Bitcoin. .
It is worth remembering that Bitcoin has a maximum limit of 21 million units, with each Bitcoin having 100 million satoshis, which translates into a total of 2.1 quadrillion satoshis.
Considering the coincidences and nature of SATS, experts advise investors not to get involved in the asset.
“SATS are not the same as Sats in bitcoin”warned another user, adding: “Shame on you, OKX, for creating the SATS ticker on your exchange for some BRC-20 affinity scam.”
BRC-20
BRC-20 is an experimental token standard designed on the Bitcoin blockchain. It enables the minting of fungible tokens via the Ordinals protocol.
Basically, Ordinals are NFTs in Bitcoin, they allow you to add data such as images, videos, audio and texts to individual satoshis.
They give each satoshi a unique number. The process of linking data to a satoshi is known as ‘enrollment’. Note that while they can be used interchangeably, ordinal numbers and inscriptions are not the same.
Ordinal is a serial number assigned to an individual satoshi. Entries are NTF content or data, which can range from images to text.
BRC-20 tokens follow Ordinals and are simpler and have much less functionality and usability than their ERC-20 counterparts due to the fact that they do not use smart contracts.
The first and largest BRC-20 token at the time of writing is ORDI, followed by SATS, which was listed on OKX and suspiciously takes the name of the smallest fraction of bitcoin.
Source: Live Coins
Barry Siefert is an accomplished journalist and author at The Nation View. He is known for his expertise in the field of cryptocurrency, and has written extensively on the topic. With a background in finance and economics, Barry has a deep understanding of the underlying technology and market forces that drive the crypto industry.
