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BingChatGPT “Pump & Dump” tokens popping up by the dozens: Peckshield

BingChatGPT “Pump & Dump” tokens popping up by the dozens: Peckshield

#BingChatGPT #Pump #Dump #tokens #popping #dozens #Peckshield Welcome to InNewCL, here is the new story we have for you today:

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Blockchain security firm Peckshield has sounded the alarm after finding dozens of tokens allegedly linked to artificial intelligence (AI)-powered chatbot ChatGPT.

In a Feb. 20 post, the firm revealed that 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 captures and retrieves.

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

According to Peckshield, at least two of the identified tokens have already lost almost 100% of their value, while a third shows a 65% loss – in a so-called “pump and dump” scheme or “rug pull”. ”

In a pump-and-dump scheme, the creators typically orchestrate a campaign using misleading claims and hype to get investors to buy tokens and then secretly sell their stake in the scheme when prices rise.

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

#PeckShieldAlert PeckShield detected dozens of newly created ones #BingChatGPT Tokens, 3 of which appear to be #honeypots & 2 have high sales tax. 2 of them have already dropped over -99%.
Deployer 0xb583 has already created dozens of tokens using a pump and dump scheme #AI #ChatGPT

— PeckShieldAlert (@PeckShieldAlert) February 20, 2023

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

The token’s name could be an attempt to trick victims into believing they are somehow related to Microsoft and exploit the hype surrounding AI chatbots.

Blockchain analysis firm Chainalysis recently found in a Feb. 16 report that nearly 10,000 new tokens launched in 2022 all exhibited on-chain properties of pump-and-dump schemes.

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 10 swaps for four consecutive trading days in the week following their launch.

An example of a crypto pump and dump scheme. Source: chain analysis

“Of the 40,521 tokens launched in 2022 that gained enough traction to be analyzed, 9,902 or 24% saw a price drop in the first week, suggesting possible pump-and-dump activity,” das said Company.

Related: Wormhole Hacker Moves Another $46M in Stolen Funds

While a price drop is not in itself an indication of wrongdoing by token creators, the firm noted that it examined 25 in particular and found that “they were almost certainly designed for a pump-and-dump” and that they were malicious honeypots code had prevented new buyers from selling the token.

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