Just days after Robinhood ($HOOD) launched the public mainnet of its new blockchain, Robinhood Chain, users have reported widespread losses from fake tokens, phishing attacks and rug pulls. The permissionless structure has exposed vulnerabilities that scammers are exploiting aggressively.
Scam contracts drain user funds immediately
According to blockchain security firm Proto, scam contracts on Robinhood Chain accept token swaps but instantly send the purchased tokens back to the deployer's wallet. To the buyer, the transaction appears to have executed normally, but in reality they have acquired worthless tokens. One user claimed that the scam token 'USER' automatically appeared in the default sell screen of the Robinhood Wallet, warning that funds could vanish if settings were not changed.
Meme coins dominate trading, amplify risks
Another victim reported swapping Ethereum (ETH) for the Robinhood Chain-based meme coin '$ROBINHOOD' only to have the tokens transferred to an unauthorized wallet immediately after approval. NFT traders and other users have reported losses ranging from $50 to tens of thousands of dollars. Researchers note that over 75% of transactions on Robinhood Chain in the past two days have been in meme coins, creating a fertile ground for speculative assets and fraudulent contracts.
Platform's response and future trust
Robinhood stated that it integrates with Blockaid to warn about known scam tokens and filter risky ones, adding that permissionless chains inherently face the same issues as other blockchains. However, the flood of early-stage scams means the platform's security and user protection measures will directly impact its credibility going forward. Users are advised to verify token addresses and smart contract approvals independently, and to avoid trusting automatically displayed tokens or promotional lists.