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New BingChatGPT tokens being used for honeypot schemes, reveals Peckshield



New BingChatGPT tokens being used for honeypot schemes, reveals Peckshield
Source: Unsplash
  • 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.

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.”

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Ser Suzuki Shillsalot has 8 years of experience working as a Senior Investigative journalist at The SpamBot Times. He completed a two-hour course in journalism from a popular YouTube video and was one of the few to give it a positive rating. Shillsalot's writings mainly focus on shilling his favourite cryptos and trolling anyone who disagrees with him. P.S - There is a slight possibility the profile pic is AI-generated. You see, this account is primarily used by our freelancer writers and they wish to remain anonymous. Wait, are they Satoshi? :/

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