• Blockchain security firm PeckShield has issued an alert on Twitter regarding newly created ‚BingChatGPT‘ tokens, which are reportedly pump and dump tokens related to AI-powered ChatGPT.
• Two of the identified tokens have already dropped over 99%, while a third lost 65% of its value.
• According to Chainalysis, 24% of the tokens launched in 2022 exhibited all the characteristics of pump and dump schemes.
PeckShield Alert
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. Two of the identified tokens have already dropped over -99%, while a third lost 65%.
Honeypot Scheme
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. It is being speculated that scammers could attempt to capitalize on a recent announcement of OpenAI’s ChatGPT technology being integrated into Bing, Microsoft’s Edge web browser.
Pump & Dump Scheme
Deployer 0xb583, a bad actor behind the tokens, created dozens of tokens using a pump and dump scheme. The creators of such schemes typically orchestrate campaigns of misleading statements and hype to persuade investors to purchase their token; these investors then secretly sell their stake in the scheme as prices go up.
Chainalysis Report
A report by Chainalysis revealed that almost 10,000 new tokens launched in 2022 exhibited all the on-chain characteristics of pump & dump schemes. Additionally, 1.1 million total tokens were launched in 2022 but only 40,521 impacted the crypto ecosystem; 24% out of this number saw price drops indicative of possible pump & dump activity within its first week after launch.
Conclusion
PeckShield’s warning highlights how even established blockchain security firms can identify malicious activities like pump & dumps taking place across different platforms or ecosystems before they cause any harm or damage—in this case helping users avoid investing in fraudulent schemes connected with ChatGPT technology and its integration with Microsoft Edge browser through Bing search engine platform.