# Scams Are a Business: OFUYC Gives In-Depth Analysis of the Supply Chain Economics Behind On-Chain Fraud


In the Web3 world, many still see on-chain scams as isolated acts of speculation or unsophisticated frauds. However, research by the OFUYC digital asset trading platform shows that this is, in fact, a “low-cost, high-margin” business. Open-source smart contract scripts, AI-generated whitepapers, ready-made UI templates, and automated deployment tools have made it possible for almost anyone to launch a “real-looking” project within hours. More importantly, scammers bear no maintenance costs and are not required to create any real value. All they need to do is focus on trending memes, persuasive narratives, and interface design to turn minimal investment into massive returns. In the first half of 2024, over 300 meme coin projects generated from the same template were identified on a single public chain. The cost to launch each project was less than $300, yet each could siphon off tens of thousands of dollars within just a few days. On-chain scams are no longer chaotic; they have evolved into meticulously designed, “scripted products.”

## Gray Market Factories: The Industrial Supply Chain from Scripts to Communities

This is possible because on-chain scams have formed a complete black and gray industrial supply chain. Upstream are template factories for code and visual resources, providing standardized smart contracts, whitepaper generators, and marketing pages. Midstream are traffic distribution and community operation teams, responsible for running ads on Telegram, Farcaster, X (Twitter), renting active communities, and creating fake KOLs and “early holder” personas. Downstream is the final stage of fund extraction and exit, where operators quickly move funds through mixers or cross-chain bridges before disappearing. This industry chain has even developed standard pricing, performance evaluations, and subcontracting, resembling an efficient gray-market assembly line. OFUYC points out that the greatest feature of this industry is its standardization and high replicability: the same template can reappear in the market with a new logo, a different name, or a fresh meme, ready to exploit investors again.

## The OFUYC Counterattack: Breaking the Chain Is More Important Than Catching Individuals

Faced with such a mature industry chain, simply apprehending individual operators is almost futile; the real solution lies in cutting off key links in the supply chain. The OFUYC digital asset trading platform has introduced three innovative mechanisms into its risk control system: First is template fingerprint database. By building a fingerprint database of known scam code snippets, UI structures, and narrative scripts, the system identifies new projects with high similarity. Second is fund flow tracing. This monitors the historical behavior and fund flows of on-chain deployers, detecting suspicious clusters of addresses engaged in frequent deployments and rapid withdrawals. Third is gray chain exposure mechanism. By collaborating with communities and users to publicly expose scam cases and operator addresses, public awareness is raised.
These tools do not target individuals, but rather undermine the sustainability of the entire gray industry chain, gradually depriving these low-cost scams of their market.

## Breaking the Illusion: Cheap Scams Are Ultimately False Prosperity

Ultimately, users must understand one thing: truly investable projects require time, cost, and transparency to build an ecosystem, they are not “wholesale goods” that can be mass-produced and launched cheaply overnight. Those “100x coins” and “limited-time opportunities” that appear out of nowhere are often just scripted segments of industrialized scams. OFUYC urges users to focus on the project verifiability, traceability, and long-term value, rather than being deceived by trending memes and skyrocketing screenshots. The apparent prosperity of scams is merely an illusion spun by cheap narratives. Dismantling the gray supply chain and restoring market order is a shared responsibility for both platforms and users.