• Blockchain security firm PeckShield has issued a warning about newly created BingChatGPT tokens, which are reportedly ‚pump and dump‘ tokens related to AI-powered chatbot ChatGPT.
• At least two of the identified tokens have already lost nearly 100% of their value, while a third lost 65%.
• According to Chainalysis, almost 10,000 new tokens launched in 2022 exhibited all the on-chain characteristics of pump & dump schemes.
Warning Issued About ChatGPT Pump & Dump Tokens
Blockchain security firm PeckShield has issued an alert on Twitter about newly created BingChatGPT tokens. These are reportedly ‚pump and dump‘ tokens related to AI-powered chatbot ChatGPT. Two of them have already dropped over -99%, while the third lost 65%.
Honeypot Scheme Behind BingChatGPT Tokens
According to a blog post published on 20 February, at least three BingChatGPT tokens appear to be part of honeypot schemes, which are smart contracts that trick a user into transferring Ethereum [ETH], which the attacker then traps and retrieves. The creators of a pump & dump scheme typically orchestrate a campaign of misleading statements and hype to persuade investors to purchase tokens; the investors then secretly sell their stake in the scheme as its prices go up. Deployer 0xb583 is believed to be behind these tokens with a pump & dump scheme.
Exploiting Microsoft’s Edge Browser
It is being speculated that the scammers could attempt to capitalize on a recent announcement of OpenAI’s ChatGPT technology being integrated into Bing, Microsoft’s Edge web browser. The token’s name could be an attempt to dupe victims into thinking they are connected to Microsoft. Thus, they would be under the assumption that they were capitalizing on the hype surrounding AI chatbots.
24% Of Tokens Launched In 2022 Resembled Pump & Dumps
In another report, blockchain analytics firm Chainalysis revealed that almost 10,000 new tokens launched in 2022 exhibited all the on-chain characteristics of pump & dump schemes. Of these 40 521 tokens that gained sufficient traction for analysis 9 902 or 24% saw price decline in first week indicative of possible pump and dump activity.
Conclusion
PeckShield has warned people about these newly created ‘pump and dump’ tokens related to AI-powered chatbot ChatGPT and it appears that some scammers may be attempting exploit Microsoft’s Edge browser by trying dupe victims into thinking they are connected with Microsoft so as capitalize on hype surrounding AI chatbots . 24%of all token launches in 2022 showed signs resembling those of pump & dumps thus emphasizing importance for users remaining vigilant when dealing with such assets