Security, Scams & Risk

Token Approval

Also: Token Allowance, Wallet Drainer

Permission you give a smart contract to spend a specific token from your wallet, sometimes granted just by signing a message rather than sending a transaction. Unlimited approvals are convenient and dangerous: if the contract is malicious or later compromised, it can empty that token from your wallet. Review and revoke old ones periodically, and read any signature request before you sign.

General education, not investment, legal or tax advice. Markets and regulation change quickly: where a definition depends on current law or on a recent event, check the latest coverage before relying on it.