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

cointelegraph.com:

Blockchain security firm Peckshield has raised the alarm after finding dozens of tokens purporting to be related to artificial intelligence (AI) powered chatbot ChatGPT.

In a Feb. 20 post, the firm revealed at least three "BingChatGPT" tokens appear to be part of honeypot schemes — a smart contract that tricks a user into sending Ethereum (ETH), which the attacker then traps and retrieves.

According to Peckshield, at least two of the tokens identified have already lost nearly 100% of their value, while a third is at a 65% loss — in what is often referred to as a “pump and dump” scheme or “rug pull.”

A pump-and-dump scheme typically involves the creators orchestrating a campaign of misleading statements and hype to persuade investors into purchasing tokens, then secretly selling their stake in the scheme when prices go up. 

At least one of the bad actors behind the tokens, "Deployer 0xb583," is responsible for creating "dozens of tokens with a pump & dump scheme,” said Peckshield.

#PeckShieldAlert 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 #AI #ChatGPT pic.twitter.com/merQikuslk

While PeckShield did not explain why the bad actors are using the name BingChatGPT for their tokens, the scammers could be trying to take advantage of the Feb. 7 announcement that OpenAI's ChatGPT tech is being integrated into Bing and Microsoft's web browser Edge.

The token's name might be an attempt to trick victims into thinking they are somehow related to Microsoft and take advantage of the hype around AI chatbots.

Blockchain analytics firm