The security risks in Binance's meme coin projects are increasing.

In recent weeks, critical security vulnerabilities have come to the forefront that investors need to be aware of in the meme coin trend initiated by Binance. A report published by GoPlus Security warns investors about the dangers present in the x402 ecosystem. Although x402 projects have shown rapid growth lately, the security risks that come with this growth are increasing.

According to the report, common security vulnerabilities found in early-stage x402 projects include over-authorization, unlimited minting, and honeypot traps. These vulnerabilities can allow malicious users to interfere with encrypted contracts and withdraw user funds. For example, the x402 bridge protocol 402bridge faced a vulnerability on October 28, leading to the malicious withdrawal of assets from over 200 users' USD Coin (USDC) wallets. Similarly, the Hello402 project experienced significant value loss on November 12 due to an unlimited mint issue.

GoPlus Security conducted audits on more than 30 x402 projects on Binance Wallet and OKX Wallet, identifying serious security risks in some projects. Projects with high risks include FLOCK, x420, U402, PENG, and x402Token. For instance, the FLOCK project allows any token in the contract to be withdrawn through ownership functions. On the other hand, the x420 project enables unlimited minting through the contract's crosschainMint function.

These risks necessitate that investors conduct contract analyses before investing in new x402 projects. With oversight and security deficiencies, it is emphasized that investors need to exercise extra caution to avoid losses. Although the x402 ecosystem has evolved with the support of technology giants like Coinbase and Google, it has been noted that new projects do not all meet the same security standards. Experts indicate that users should therefore focus on trustworthy projects.