Fake ChatGPT tokens pop up as scammers leverage the new AI craze

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Key Takeaways:

  • Dozens of newly minted BingChatGPT tokens have been detected by PeckShield.
  • About 170 tokens with the ChatGPT name have been released on decentralised exchanges like Uniswap and PancakeSwap.

Scammers are attempting to capitalise on the hype that the ChatGPT artificial intelligence chatbot has generated in the tech community by issuing phoney tokens that mimic the ChatGPT name.

These tokens have been released in the last several weeks in their hundreds. Of these, 132 unique tokens have been created on the BNB Chain, 25 on the Ethereum blockchain, and 10 on other blockchains such the Cronos, Solana, Arbitrum, and OKChain.

There are currently more than 170 ChatGPT-branded tokens available on decentralised exchanges like Uniswap and PancakeSwap, according to data from DEXTools.

The most widely used token is traded on Ethereum, with a market valuation of over $250 million, over 300 distinct holders, and a liquidity of $600,000.

These fraudulent transactions come in response to the decision by software behemoth Microsoft to incorporate OpenAI chatbots for search services on Microsoft’s web browsers.

Some of these tokens have already undergone what is known as a “pump-and-dump” scam or a “rug pull,” where they have lost the majority, if not the entirety of their value.

Despite having no connection to the chatbot technology powered by artificial intelligence, these ChatGPT tokens are successfully enticing crypto enthusiasts.

con artists are definitely not passing up the chance to profit from the buzz. Despite warning signs, a number of “BingChatGPT” have been issued, seeded with liquidity, and are seeing thousands of dollars in trading volumes.

PeckShield, a blockchain security company, tweeted on Monday, “PeckShield has discovered dozens of newly produced #BingChatGPT tokens, of which 3 appear to be #honeypots & 2 have high sell tax.”

In the cryptocurrency world, fake tokens are nothing new; as soon as a project develops popularity, scammers enter the scene and do their dirty tactics. Famous Twitter alternative Damus revealed earlier this month that there are at least 15 fake tokens floating around.

Even after inciting tremendous horror in the cryptocurrency community, the insolvent FTX also  could not escape the dangers of bogus tokens. The recovery team in charge of the FTX bankruptcy issued a warning to investors, warning them to be wary of fraudulent tokens that seek to profit from the defunct cryptocurrency exchange’s troubles.

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Aadrika Sharma
Aadrika Sharma

I enjoy writing and try to learn new things every passing day!

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