Definition ∞ An unauthorized token refers to a digital asset created or distributed without the legitimate permission or backing of its purported issuer or protocol. These tokens are often fraudulent, designed to deceive users into believing they hold value or represent a legitimate project. They can be used in phishing schemes, rug pulls, or other scams to illicitly acquire funds. Such tokens lack official recognition and carry significant financial risk.
Context ∞ Unauthorized tokens pose a persistent threat to users within the digital asset ecosystem, frequently appearing in conjunction with scams and fraudulent activities. The discussion often centers on user education regarding due diligence, the importance of verifying contract addresses, and the challenges faced by platforms in preventing the listing of deceptive assets. Future efforts include improved detection mechanisms by exchanges and stricter listing criteria to protect users from these illegitimate tokens. News frequently reports on new scams involving such unauthorized digital assets.
Blockchain Knowledge
Cryptocurrency Foundation
Cryptospace Newsfeed
