Blockchain security company PeckShield has raised the alarm after discovering dozens of tokens allegedly linked to artificial intelligence (AI)-powered chatbot ChatGPT.
“In a post on February 20, it was revealed that at least three “BingChatGPT” tokens appear to be part of a honeypot scheme – a smart contract that tricks users into sending Ether (ETH), which the attacker then traps and retrieves.
According to PeckShield, at least two identified tokens have lost nearly 100% of their value, while a third has lost 65% – often referred to as a “pump and dump” or “carpet pull” scheme.
Pump-and-dump schemes typically involve creators organizing campaigns of misleading statements and hype to entice investors to buy tokens, then secretly selling shares in the scheme when prices rise.
At least one of the bad actors behind the token, “Deployer 0xb583,” is responsible for creating “dozens of tokens with a pump & dump scheme,” said PeckShield.
#PeckShieldAlert PeckShield has detected dozens of newly created ones #BingChatGPT token, which 3 appears #honey & 2 have a high sales tax. 2 of them have dropped -99%.
Deployer 0xb583 has created dozens of tokens with a pump & dump scheme #AI #ChatGPT pic.twitter.com/merQikuslk— PeckShieldAlert (@PeckShieldAlert) February 20, 2023
While PeckShield did not explain why bad actors used the BingChatGPT name for tokens, scammers could try to take advantage of the February 7 announcement that OpenAI’s ChatGPT technology is being integrated into the Bing and Microsoft Edge web browsers.
The token name may be an attempt to trick victims into thinking it is related to Microsoft and take advantage of the hype surrounding AI chatbots.
Blockchain analytics company Chainalysis recently noted in a February 16 report that nearly 10,000 new tokens launched in 2022 have all the characteristics of a chain as a pump-and-dump scheme.
According to analytics firm Blockchain, 1.1 million tokens were launched last year, but only 40,521 had an “impact on the crypto ecosystem,” with at least ten swaps during four consecutive trading days in the week after launch.
“Of the 40,521 tokens launched in 2022 that gained enough traction to be analyzed, 9,902, or 24%, experienced a price drop in the first week indicating possible pump and dump activity,” the company said.
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While the drop in price itself is not an indication of wrongdoing on the part of the token’s creator, the company noted that it examined 25 in particular and found “they were almost certainly designed to pump and dump,” with malicious honeypot code preventing them. new buyers from selling tokens.