Blockchain safety agency PeckShield has raised the alarm after discovering dozens of tokens purporting to be associated to synthetic intelligence (AI) powered chatbot ChatGPT.
“In a Feb. 20 submit, the agency revealed not less than three “BingChatGPT” tokens seem like a part of honeypot schemes — a sensible contract that methods a person into sending Ether (ETH), which the attacker then traps and retrieves.
In line with PeckShield, not less than two of the tokens recognized have already misplaced almost 100% of their worth, whereas a 3rd is at a 65% loss — in what’s sometimes called a “pump and dump” scheme or “rug pull.”
A pump-and-dump scheme sometimes entails the creators orchestrating a marketing campaign of deceptive statements and hype to steer traders into buying tokens, then secretly promoting their stake within the scheme when costs go up.
A minimum of one of many dangerous actors behind the tokens, “Deployer 0xb583,” is chargeable for creating “dozens of tokens with a pump & dump scheme,” stated PeckShield.
#PeckShieldAlert PeckShield has detected dozens of newly created #BingChatGPT tokens, of which 3 seem like #honeypots & 2 have excessive promote 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— PeckShieldAlert (@PeckShieldAlert) February 20, 2023
Whereas PeckShield didn’t clarify why the dangerous actors are utilizing the identify BingChatGPT for his or her tokens, the scammers could possibly be making an attempt to make the most of the Feb. 7 announcement that OpenAI’s ChatGPT tech is being built-in into Bing and Microsoft’s Edge net browser.
The token’s identify could be an try to trick victims into pondering they’re one way or the other associated to Microsoft and make the most of the hype round AI chatbots.
Blockchain analytics agency Chainalysis just lately famous in a Feb. 16 report that just about 10,000 new tokens launched in 2022 had all of the on-chain traits of being pump-and-dump schemes.
In line with the Blockchain analytics agency, 1.1 million tokens have been launched final yr, however solely 40,521 had an “influence on the crypto ecosystem,”with not less than ten swaps over 4 consecutive days of buying and selling within the week following their launch.
“Of the 40,521 tokens launched in 2022 that gained adequate traction to be value analyzing, 9,902, or 24%, noticed a worth decline within the first week indicative of doable pump and dump exercise,” the agency stated.
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Whereas a worth drop by itself shouldn’t be a sign of wrongdoing on the a part of token creators, the agency famous that it examined 25 specifically and located “they have been nearly definitely designed for a pump and dump,” with malicious honeypot code that stops new patrons from promoting the token.