Taking advantage of OpenAI’s “fragrance” of ChatGPT, these trend-following tokens are appearing in the market.
The explosive “AI effect” has caused tokens related to this array such as Fetch (FET), SingularityNET (AGIX) or Ocean Protocol (OCEAN) to grow dramatically in the past month. However, this inadvertently becomes a double-edged sword for frauds to profit in the market.
On February 20, the famous blockchain security firm PeckShieldAlert issued a red alert after detecting dozens of fraudulent tokens called BingChatGPT on Ethereum, BNB Chain and Arbitrum.
#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 #WHO #ChatGPT pic.twitter.com/merQikuslk— PeckShieldAlert (@PeckShieldAlert) February 20, 2023
According to PeckShieldAlert, there are at least 3 tokens of the honeypot type. This is a technique used by an anonymous person to trick users into sending ETH into a smart contract and take control and drain money.
The security firm’s analysis also reflects that there are no less than 2 BINGCHATGPT tokens that have lost almost 100% of their value and most other tokens are on the decline. This phenomenon is often found in pump-dump or rug pull patterns, which inflate prices and drain liquidity or dump all tokens on naive investors.
According to a Chainalysis statistic, hackers stole nearly $3.8 billion from crypto investors last year. Between September 2020 and December 2022, Solidus Labs estimates that over 200,000 fraudulent tokens were generated, resulting in no less than 2 million users falling victim to rug pull and scams.
With the AI ”craze” after Microsoft invested $ 10 billion in OpenAI’s ChatGPT, users need to be very cautious before investing in any projects related to this field.
Synthetic Kyptos
