In a recent development that has sent ripples through the decentralized finance (DeFi) community, CertiK issued an alert about a sharp 99% drop in the value of a token named "Injective Protocol (INJ)" on the Polygon network. This sudden crash has caused confusion among investors, especially given the identical name and ticker symbol (INJ) shared with the well-known Cosmos-based DeFi project, Injective. However, CertiK has clearly stated that the failing token on Polygon is entirely unrelated to the legitimate Injective protocol.
This incident underscores the growing risks of token impersonation and name spoofing in multi-chain ecosystems, where malicious actors exploit brand recognition to mislead investors. As blockchain networks like Polygon grow in popularity, so too does the frequency of such deceptive practices.
Understanding the Incident
According to CertiK’s on-chain monitoring system, the INJ token deployed on Polygon experienced a near-total collapse in value, losing 99% of its market price in a short period. Such a steep decline is often indicative of a "rug pull," where developers abandon a project and withdraw all liquidity, leaving investors with worthless tokens.
What makes this case particularly concerning is the deliberate naming strategy. The fake token was labeled “Injective Protocol (INJ)” — an exact match to the official name and ticker of the real Injective project, which operates as a decentralized derivatives trading protocol built on the Cosmos blockchain.
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Despite the identical branding, there is no technical or organizational connection between the two projects. The legitimate Injective protocol continues to operate securely on Cosmos, with its native INJ token maintaining stability and active development. Real-time data shows the genuine INJ token trading around $11.10, unaffected by the collapse on Polygon.
Why This Matters for Investors
The rise of multi-chain deployments has created both opportunities and vulnerabilities. While legitimate projects expand across chains via bridges and Layer 2 solutions, bad actors take advantage of this complexity to launch copycat tokens on different networks.
Key red flags in this case include:
- Unverified smart contract: The Polygon-based INJ token lacks audit verification or official documentation.
- Sudden liquidity withdrawal: On-chain analysis revealed a rapid removal of liquidity pools, confirming suspicious activity.
- Misleading naming: Using a high-profile project’s name and ticker is a common tactic in phishing attacks.
Investors must go beyond surface-level identifiers like names and tickers. Verifying the correct blockchain network, checking for official audits, and reviewing project documentation are essential steps before any investment.
How to Identify Fake Tokens
With thousands of tokens across dozens of blockchains, distinguishing real projects from scams requires vigilance. Here are practical steps to avoid falling victim:
- Check the official website and social media channels – Legitimate projects maintain consistent communication across verified platforms.
- Verify the smart contract address – Compare it with the one listed on the project’s official site or trusted blockchain explorers.
- Review audit reports – Reputable protocols like Injective undergo multiple security audits from firms like CertiK, PeckShield, or Quantstamp.
- Use blockchain analysis tools – Platforms that track liquidity changes, holder distribution, and transaction patterns can reveal red flags early.
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The Role of Security Firms Like CertiK
CertiK plays a crucial role in detecting and alerting the public about such threats. Through real-time blockchain monitoring and AI-driven analytics, CertiK identifies suspicious behavior — such as sudden price dumps, contract anomalies, or impersonation attempts — and issues public warnings.
In this instance, CertiK’s prompt alert helped prevent further losses by clarifying the distinction between the genuine Injective protocol and the fraudulent token. Their transparency supports market integrity and empowers users to make informed decisions.
Core Keywords Identified
To enhance search visibility and align with user intent, the following core keywords have been naturally integrated throughout this article:
- Injective Protocol
- INJ token
- Polygon blockchain
- CertiK alert
- Fake crypto tokens
- DeFi security
- Token impersonation
- Rug pull detection
These terms reflect common search queries related to cryptocurrency safety, project verification, and scam prevention — addressing both informational and transactional user needs.
Frequently Asked Questions (FAQ)
Is the INJ token on Polygon the same as the real Injective token?
No. The INJ token that crashed on Polygon is a fraudulent imitation. The authentic Injective Protocol operates exclusively on the Cosmos network and remains secure and operational.
How can I verify if a token is legitimate?
Always cross-check the token’s contract address on official websites or blockchain explorers like Etherscan or Mintscan. Look for security audits, active development, and verified social media presence.
Why do scammers use names like “Injective Protocol”?
Well-known project names carry trust. Scammers exploit this familiarity to trick users into believing they’re investing in reputable protocols, especially when trading on decentralized exchanges without strict listing rules.
What should I do if I’ve invested in a fake token?
Unfortunately, recovery is unlikely once funds are sent to a scam contract. Report the incident to platforms like CertiK Skynet or Immunefi for tracking, and prioritize learning secure verification practices for future investments.
Does Injective support multiple blockchains?
While Injective is primarily built on Cosmos, it enables cross-chain functionality through bridges. However, any token claiming to be “INJ” outside its official ecosystem should be treated with extreme caution unless verified.
Can price drops like this affect the real INJ token?
Generally, no. The crypto community and major exchanges distinguish between legitimate projects and impersonators. However, short-term market sentiment may cause minor volatility due to confusion.
Protecting Yourself in a Multi-Chain World
As blockchain technology evolves, so do the methods used by cybercriminals. The Injective impersonation case on Polygon serves as a timely reminder: due diligence is non-negotiable.
Always assume that name alone is not proof of authenticity. Use trusted sources, enable two-factor authentication on wallets, and consider using wallet extensions that flag known scam contracts.
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The future of DeFi depends not only on innovation but also on user education and security resilience. By staying informed and leveraging tools like those offered by CertiK and OKX, investors can navigate the crypto landscape with greater confidence and safety.
In summary, while the Polygon-based INJ token crash is alarming, it does not impact the legitimate Injective Protocol. Remaining vigilant, verifying sources, and relying on security-first practices are your best defenses against increasingly sophisticated crypto scams.