New BingChatGPT tokens being used for honeypot schemes, reveals Peckshield

• Peckshield has sent out a warning about ChatGPT pump & dump tokens.
• Two tokens have already lost 100% of their value, while the third lost 65%.

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.

#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

All about BingChatGPT’s honeypot scheme

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.

Moreover, PeckShield confirmed that at least two of the identified tokens have already lost nearly 100% of their value. Additionally, a third token lost 65%. 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, a bad actor behind the tokens, created dozens of tokens using a pump and dump scheme, mentioned PeckShield.

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.

Chainalysis also mentioned that 1.1 million tokens were launched in 2022, but barely 40,521 impacted the crypto ecosystem.

“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.”