PeckShield, a blockchain security firm, has raised concerns about multiple tokens claiming to be affiliated with the AI-powered chatbot ChatGPT.
According to a post on Feb. 20, the firm has identified several “BingChatGPT” tokens as part of honeypot schemes. These smart contracts are designed to deceive users into sending Ether, which is then captured and retrieved by the attacker.
PeckShield has reported that two of the tokens identified have lost nearly 100% of their value, while the third has lost 65%. This is often referred to as a “pump and dump” scheme or “rug pull.”
A pump-and-dump scheme typically involves manipulating the price of a token by artificially inflating its value through misleading statements and hype to encourage investors to buy. Once the price has risen, the creators of the scheme then sell their stake in the project for a profit, leaving other investors with tokens that have lost value.
PeckShield stated that “Deployer 0xb583” is responsible for creating “dozens of tokens with a pump & dump scheme.”
#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
The reason why the scammers behind the BingChatGPT tokens are using the name is not clear. However, it is possible that they are attempting to take advantage of the announcement made on February 7 that OpenAI’s ChatGPT technology is being integrated into Microsoft’s Bing search engine and Edge web browser.
The integration allows users to ask questions and receive answers in natural language rather than using traditional keyword search. The name “BingChatGPT” may have been chosen to create the impression that the tokens are related to this integration or that they are somehow affiliated with OpenAI or Microsoft.
However, there is no evidence to suggest that the tokens have any legitimate connection to these companies.
According to a Feb. 16 report by blockchain analytics firm Chainalysis, nearly 10,000 newly launched tokens in 2022 exhibited all the on-chain characteristics of being pump-and-dump schemes. This means that the tokens were likely created to deceive investors with the aim of artificially inflating their value before the creators sold their stake for a profit.
Out of the 1.1 million tokens that were launched in 2022, only 40,521 had a significant impact on the crypto ecosystem. These tokens had at least ten swaps over four consecutive days of trading in the week following their launch.
Among these tokens, 9,902 (24%) experienced a price decline during their first week of trading that indicated possible pump-and-dump activity.
Chainalysis examined 25 such cases and found they were likely designed for a pump-and-dump with malicious honeypot code preventing new buyers from selling the token.
This recent discovery by PeckShield highlights the need for investors to exercise caution when investing in newly-launched cryptocurrencies or tokens. It is important to conduct thorough research and due diligence before investing in any cryptocurrency or token project.
