a month ago 2 min read

'Pump and Dump' BingChatGPT Tokens are Multiplying by Dozen


PeckShield, a blockchain security company, claimed on Twitter that it has discovered numerous pump-and-dump coins that claim to be associated with ChatGPT.

PeckShield, a blockchain security company, has issued a warning after discovering many tokens that claim to be associated with ChatGPT, an AI-powered chatbot.

A smart contract that deceives a user into giving Ether, which the attacker subsequently captures and collects, is used in at least three "BingChatGPT" tokens, according to a post from the company on February 20.

In what is known as a "pump and dump" technique or "rug pull," at least two of the tokens discovered have already lost nearly 100% of their value, and a third is at a 65% loss.

In a classic pump-and-dump scheme, the perpetrators orchestrate a campaign of false advertising and hype to get investors to buy tokens, then covertly sell their investment in the scheme when prices rise.

"Deployer 0xb583" is at least one of the criminals behind the tokens and is in charge of producing "dozens of tokens with a pump & dump strategy." Peckshield stated:

"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 AIChatGPT"

Despite PeckShield's lack of an explanation, it's possible that the con artists are attempting to capitalize on the February 7 revelation that OpenAI's ChatGPT technology will be incorporated into Bing and Microsoft's Edge web browser.

The name of the token may be an effort to deceive victims into believing they are somehow associated with Microsoft and capitalize on the hype surrounding AI chatbots.

In 2022, around 10,000 new tokens were introduced, and they all had pump-and-dump characteristics.

Only 40,521 of the 1.1 million tokens created last year had a "effect on the crypto ecosystem," with at least ten swaps occurring over four straight trading days in the week after their introduction. The firm stated:

"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,"

Even though a price decline by itself does not necessarily mean that the people who created the token did something wrong, the company looked at 25 in particular and discovered that "they were almost certainly designed for a pump and dump," complete with malicious honeypot code that prevents new buyers from selling the token.

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