Scammers are trying to take advantage of the ChatGPT craze. They are issuing fake tokens named after the artificial intelligence chatbot. In the last few weeks, hundreds of these tokens were issued. There have been 132 tokens issued on BNB Chain, 25 tokens on Ethereum, and 10s of tokens on other blockchains like OKChain, Solana, and Cronos.
These fake issuances are in response to Microsoft’s decision to integrate OpenAI’s chatbots with Bing. Scammers don’t waste a chance to make money off the hype. Despite warnings, numerous “BingChatGPTs” have been distributed, seeded to liquidity, and seen large trading volumes of thousands of dollars.
PeckShield tweeted that it had detected “dozens” of #BingChatGPT tokens. Three appear to have #honeypots, and 2 have high sales tax. Two of them already dropped by more than -99%. PeckShield said Deployer 0xb583 had already created many tokens using a pump-and-dump scheme. This refers to the wallet address for the fraudulent issuer of these tokens.
Honeypots in cryptocurrency are smart contracts that pretend to leak funds to an arbitrary person, provided that the user sends additional money to them. On the other hand, sales tax refers to the amount of money an illicit smart contract takes when a related token is sold. Usually, this means that a user who sells $100 worth of tokens receives only $50, with the rest “taxed,” going to the smart contact’s developer.
According to DEXTools, over 170 fake ChatGPT-branded tokens have been issued on decentralized exchanges like Uniswap or PancakeSwap.
This is the most popular has market cap exceeding $250 million and over 300 holders. It also has $600,000 in liquidity and is issued on Ethereum. The BNB Chain-version has $246,000 liquidity and a $24 million market capitalization. These fake tokens can be traded in large quantities, indicating that the crypto-punting dream is alive and well.