BingChatGPT 'pump & dump' tokens emerging by the dozens: Peckshield

Blockchain information steadfast Peckshield has raised the alarm aft uncovering dozens of tokens purporting to beryllium related to artificial quality (AI) powered chatbot ChatGPT.

In a Feb. 20 post, the steadfast revealed astatine slightest 3 "BingChatGPT" tokens appear to beryllium portion of honeypot schemes — a astute declaration that tricks a idiosyncratic into sending Ethereum (ETH), which the attacker past traps and retrieves.

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

According to Peckshield, astatine slightest 2 of the tokens identified person already mislaid astir 100% of their value, portion a 3rd is astatine a 65% nonaccomplishment — successful what is often referred to arsenic a “pump and dump” strategy oregon “rug pull.”

A pump-and-dump scheme typically involves the creators orchestrating a run of misleading statements and hype to transportation investors into purchasing tokens, past secretly selling their involvement successful the strategy erstwhile prices spell up. 

At slightest 1 of the atrocious actors down the tokens, "Deployer 0xb583," is liable for creating "dozens of tokens with a pump & dump scheme,” said Peckshield.

#PeckShieldAlert PeckShield has detected dozens of recently created #BingChatGPT tokens, of which 3 look to beryllium #honeypots & 2 person precocious merchantability tax. 2 of them person already dropped implicit -99%.
Deployer 0xb583 has already created dozens of tokens with a pump & dump strategy #AI #ChatGPT pic.twitter.com/merQikuslk

While PeckShield did not explicate wherefore the atrocious actors are utilizing the sanction BingChatGPT for their tokens, the scammers could beryllium trying to instrumentality vantage of the Feb. 7 announcement that OpenAI's ChatGPT tech is being integrated into Bing and Microsoft's web browser Edge.

The token's sanction mightiness beryllium an effort to instrumentality victims into reasoning they are someway related to Microsoft and instrumentality vantage of the hype astir AI chatbots.

Blockchain analytics steadfast Chainalysis precocious noted successful a Feb. 16 report that astir 10,000 caller tokens launched successful 2022 had each the on-chain characteristics of being pump-and-dump schemes.

According to the Blockchain analytics firm, 1.1 cardinal tokens were launched past year, but lone 40,521 had an "impact connected the crypto ecosystem," with astatine slightest 10 swaps implicit 4 consecutive days of trading successful the week pursuing their launch.

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

"Of the 40,521 tokens launched successful 2022 that gained capable traction to beryllium worthy analyzing, 9,902, oregon 24%, saw a terms diminution successful the archetypal week indicative of imaginable pump and dump activity," the steadfast said. 

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While a terms driblet connected its ain is not an denotation of wrongdoing connected the portion of token creators, the steadfast noted that it examined 25 successful peculiar and recovered "they were astir surely designed for a pump and dump," and had malicious honeypot codification that prevents caller buyers from selling the token.