Blockchain security company PeckShield has raised the alarm after finding dozens of tokens allegedly related to the AI-powered chatbot ChatGPT.
In a post on February 20, The firm revealed that at least three “BingChatGPT” tokens appear to be part of honeypot schemes, a smart contract that tricks a user into sending Ether (ETH), which the attacker then catches and recovers..
According to PeckShield, at least two of the identified tokens have already lost almost 100% of their value, while a third is at a 65% lossoften referred to as a “pump and dump” or “rug pull” scheme.
In this type of scam, the creators orchestrate a campaign of misleading claims and hype to persuade investors to buy tokens, then secretly sell their stake. in the scam when prices rise.
At least one of the bad actors behind the tokens, “Deployer 0xb583”, is responsible for the creation of “dozens of tokens that have a pump & dump scheme”said PeckShield.
#PeckShieldAlert PeckShield has detected dozens of newly created #BingChatGPT tokens, of which 3 appear to be #honeypots & 2 have high sell tax. 2 of them have already dropped over -99%.
Deployer 0xb583 has already created dozens of tokens with a pump & dump scheme #AI #ChatGPT pic.twitter.com/merQikuslk— PeckShieldAlert (@PeckShieldAlert) February 20, 2023
#PeckShieldAlert PeckShield has detected dozens of newly created #BingChatGPT tokens, of which 3 appear to be #honeypots and 2 have high sales tax. 2 of them have already fallen more than -99%. Deployer 0xb583 has already created dozens of tokens with a pump & dump scheme #AI #ChatGPT pic.twitter.com/merQikuslk
Although PeckShield did not explain why the bad guys are using the name BingChatGPT for their tokens, scammers could be trying to take advantage of the February 7 announcement that OpenAI’s ChatGPT technology is being integrated into Bing and Microsoft’s Edge web browser.
The token name could be an attempt to trick victims into thinking they are somehow related to Microsoft and take advantage of the buzz around AI chatbots..
The blockchain analytics company chainalysis recently noted in a Feb. 16 report that almost 10,000 new tokens launched in 2022 had all the on-chain characteristics of being pump and dump schemes..
According to the blockchain analytics firm, 1.1 million tokens were launched last year, but only 40,521 had an “impact on the crypto ecosystem”; there were at least ten trades during four consecutive trading days in the week following its launch.
“Of the 40,521 tokens launched in 2022 that gained enough traction to be tested, 9,902, or 24%, saw a price drop in the first week indicative of potential pump and dump activity,” the firm said..
Although a price drop alone is not an indication that the creators of the tokens have acted badly, the company noted that it examined 25 in particular and found that they were “almost certainly designed for a pump and dump”; have a malicious honeypot code that prevents new buyers from selling the token.
Clarification: The information and/or opinions expressed in this article do not necessarily represent the views or editorial line of Cointelegraph. The information presented here should not be taken as financial advice or investment recommendation. All investment and commercial movement involve risks and it is the responsibility of each person to do their due research before making an investment decision.
Keep reading:
Investments in crypto assets are not regulated. They may not be suitable for retail investors and the entire amount invested may be lost. The services or products offered are not directed or accessible to investors in Spain.