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New BingChatGPT tokens being used for honeypot schemes, reveals Peckshield

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New BingChatGPT tokens being used for honeypot schemes, reveals Peckshield

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  • 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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Saman Waris works as a News Editor at AMBCrypto. She has always been fascinated by how the tides of finance and technology shape communities across demographics. Cryptocurrencies are of particular interest to Saman, with much of her writing centered around understanding how ideas like Momentum and Greater Fool theories apply to altcoins, specifically, memecoins. A graduate in history, Saman worked the sports beat before diving into crypto. Prior to joining AMBCrypto 2 years ago, Saman was a News Editor at Sportskeeda. This was preceded by her stint as Editor-in-Chief at EssentiallySports.
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