PeckShield Raises Alarm On BingChatGPT 'Pump and Dump' Tokens

PeckShield Says BingChatGPT ‘Tokens’ Losing Value

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

Typically, the creators of a pump-and-dump scheme plan a campaign of false claims and hype to convince investors to buy tokens and then secretly sell their stake in the scheme when prices rise. According to PeckShield, at least one of the bad guys who made the tokens, "Deployer 0xb583," is to blame for making "dozens of tokens with a pump & dump scheme."

The con artists may be attempting to capitalize on the announcement that OpenAI's ChatGPT technology is being integrated into Bing and Microsoft's Edge web browsers, despite the fact that PeckShield did not provide any explanation as to why the bad guys are using the name BingChatGPT for their tokens.

The name of the token might be an attempt to capitalize on the hype surrounding AI chatbots and trick victims into thinking they are related to Microsoft in some way.

Chainalysis’ Discovery About ‘Pump And Dump’ Tokens

Chainalysis, a company that analyses blockchains, recently found that nearly 10,000 brand-new tokens that went on sale in 2022 had all of the on-chain characteristics of pump-and-dump schemes.

The company noted that it examined 25 tokens in particular and discovered "they were almost certainly designed for a pump and dump," with malicious honeypot code that prevents new buyers from selling the token.