BingChatGPT ‘pump & dump’ tokens emerging by the dozens: Peckshield

Blockchain security firm Peckshield has raised the alarm after discovering dozens of tokens believed to be linked to ChatGPT’s artificial intelligence (AI) chatbot.

In a Feb. 20 post, the firm revealed that at least three “BingChatGPT” tokens appear to be part of a decoy scheme, a smart contract that tricks the user into sending Ethereum (ETH), which the attacker then intercepts and extracts.

Some of the addresses are reported to be associated with BingChatGPT tokens. Source: PeckShield

According to Peckshield, at least two of the identified tokens have already lost nearly 100% of their value, and a third has lost 65% — in what is often referred to as a “pump and dump” or “mat pull” scheme. ”

The pump and dump scheme typically involves the creators orchestrating a campaign of misleading claims and hype to convince investors to buy tokens and then covertly sell their stake in the scheme when prices rise.

At least one of the attackers behind the tokens, “Deployer 0xb583,” is responsible for creating “dozens of Pump & Dump tokens,” Packschild said.

While PeckShield did not explain why the attackers are using the BingChatGPT name for their tokens, the scammers may have tried to take advantage on February 7th. announcement that OpenAI ChatGPT technology is being integrated into Bing and the Microsoft Edge web browser.

The name of the token may be an attempt to trick victims into thinking they are somehow connected to Microsoft and taking advantage of the hype around AI chatbots.

Analyst firm Chainalysis recently noted in a February 16 report. report that nearly 10,000 new tokens issued in 2022 had all the characteristics of pump and dump circuits.

According to analytics firm Blockchain, 1.1 million tokens were launched last year, but only 40,521 of them had an “impact on the crypto ecosystem,” with at least ten swaps over four consecutive days of trading within a week of their launch.

An example of a cryptopump and dump scheme. Source: Chain Analysis

“Of the 40,521 tokens issued in 2022 that gained enough popularity to be analyzed, 9,902, or 24%, experienced a price decline in the first week, indicating possible pump and dump activity,” the post reads. firms.

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While the drop in price is not in itself a sign of wrongdoing on the part of token creators, the firm noted that it examined 25 tokens in particular and found that “they were almost certainly designed to pump and dump” and had malicious decoy code that did not allows new buyers to sell the token.

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