BingChatGPT ‘pump & dump’ tokens emerging by the dozens: PeckShield


Blockchain security firm PeckShield has raised the alarm after finding dozens of tokens purporting to be related to artificial intelligence (AI) powered chatbot ChatGPT.

In a Feb. 20 post, the firm revealed at least three “BingChatGPT” tokens appear to be part of honeypot schemes — a smart contract that tricks a user into sending Ethereum (ETH), which the attacker then traps and retrieves.

How To Get Free Crypto  

Some of the addresses reportedly associated with the BingChatGPT tokens. Source: PeckShield

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 — in what is often referred to as a “pump and dump” scheme or “rug pull.”

A pump-and-dump scheme typically involves the creators orchestrating a campaign of misleading statements and hype to persuade investors into purchasing tokens, then secretly selling their stake in the scheme when prices go up. 

At least one of the bad actors behind the tokens, “Deployer 0xb583,” is responsible for creating “dozens of tokens with a pump & dump scheme,” said PeckShield.

While PeckShield did not explain why the bad actors are using the name BingChatGPT for their tokens, the scammers could be trying to take advantage of the Feb. 7 announcement that OpenAI’s ChatGPT tech is being integrated into Bing and Microsoft’s web browser Edge.

Coinbase Banner  

The token’s name might be an attempt to trick victims into thinking they are somehow related to Microsoft and take advantage of the hype around AI chatbots.

Blockchain analytics firm Chainalysis recently noted in a Feb. 16 report that nearly 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,” with at least ten swaps over four consecutive days of trading in the week following their launch.

An example of a crypto pump and dump scheme. Source: Chainalysis

“Of the 40,521 tokens launched in 2022 that gained sufficient traction to be worth analyzing, 9,902, or 24%, saw a price decline in the first week indicative of possible pump and dump activity,” the firm said. 

FreeBitcoin Banner  

Related: Wormhole hacker moves another $46M of stolen funds

While a price drop on its own is not an indication of wrongdoing on the part of token creators, the firm noted that it examined 25 in particular and found “they were almost certainly designed for a pump and dump,” and had malicious honeypot code that prevents new buyers from selling the token.

Go to Source
Author: Stephen Katte

Recommended Crypto Services, Products and Strategies:

The first thing any crypto investor needs is is a reliable and secure Crypto Wallet.  Whether you’re looking for an online wallet, hardware wallet, desktop or mobile wallet, Crypto Renegade provides you with all the Best Crypto Wallets in each category.

Best Crypto Wallets Banner

When you’re ready to buy more crypto, or exchange your coins for others, Crypto Renegade’s list of the Best Crypto Exchanges has you covered.  The Crypto Exchanges recommended here offer everything from simplicity and convenience to advanced trading platforms and profit sharing. 

Best Crypto Exchanges Banner

If you want to learn more about the methods and tools that can be used to find Great Crypto Projects, then be sure to check out Crypto Renegade’s strategy for How To Find The Best Cryptocurrency.

Crypto Strategy Banner

For those people that don’t have any money to invest right now, or just want to understand the technology a bit more, you’ll definitely want to check out Crypto Renegade’s Free Crypto Strategy and start collecting Free Coins today!

Free Crypto Banner

What do you think about cryptocurrency? Do you have any questions about it? Be sure to leave a comment below.

This site uses Akismet to reduce spam. Learn how your comment data is processed.