Blockchain security firm PeckShield calls users to watch out for fake ChatGPT-related crypto tokens after finding dozens of them.
The firm revealed at least three “BingChatGPT” tokens appear to be part of honeypot schemes, which are smart contracts that trick users into sending Ether, which the hacker then traps and retrieves — all while new buyers are prevented from doing the same (sell their tokens) in the first few weeks or months.
According to PeckShield, at least two of the tokens identified have already lost nearly 100% of their value, while a third is at a 65% loss.
Such schemes are often referred to as “pump and dump” or “rug pull,” and they typically involve the creators orchestrating a campaign of misleading statements and hype to persuade investors into purchasing tokens. Once enough unsuspecting users have been tricked, the scheme maker sells their stake and runs to the bank.
At least one of the bad actors behind the tokens, “Deployer 0xb583,” is responsible for creating “dozens of tokens with a pump & dump scheme,” according to PeckShield.
With the name BingChatGPT, creators of these schemes want to ride the marketing wave of Microsoft — which has recently integrated OpenAI’s ChatGPT in its search engine – Bing. In that sense, the token name might confuse users that by buying into the token, they will somehow be able to take a portion of the profits the AI platform makes down the road.
#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
Meanwhile, blockchain analytics firm Chainalysis recently noted that of nearly 10,000 new tokens launched in 2022, almost all had the on-chain characteristics of being pump-and-dump schemes.
The cryptocurrency market remains too volatile to manage for most users, and if you don’t have too much money to play with it, you are better off avoiding it altogether. Or, perhaps, just put a fraction of your savings in it. Playing safe is not a bad idea; quite the contrary.