HomeBlockchain News Tokens fraudulently using the name ChatGPT are scamming investors out of money
Tokens fraudulently using the name ChatGPT are scamming investors out of money
Blockchain News
Like? Do Rank It! Likes
With institutional and retail investors both turning their attention to AI last month, AI-related crypto tokens such as (FET), SingularityNET (AGIX), and Ocean Protocol (OCEAN) saw significant gains throughout January.
However, concurrent to those gains has been an uptick in scams, with @PeckShieldAlert announcing this week the discovery of several dozen scam tokens associated with Bing’s integration of ChatGPT.
The use of a honeypot scam is common in crypto. A honey pot scam involves a fraudulent offer to investors that they will receive additional funds after they have transferred an initial sum.
Today, with investor interest skyrocketing in AI in the wake of Microsoft’s eye-watering $10 billion investment into OpenAI’s ChatGPT, news of the language model going viral has also been a breeding ground for new forms of fraudulent activity.
A honey pot scam involves a fraudulent offer to investors that they will receive additional funds after the initial amount is transferred. Peck Shield analysis revealed that there are at least 20 tokens currently on the market as bingchatgpt.
12 of them are on the binary bnb channel, six were created on ethereum, and two more on arbitrum.
According to the chain analysis, a staggering 170 tokens now use the name chatgpt, with nbb the most common protocol for issuing them.
Neither Microsoft nor openai announced any formal plans for cryptocurrency.
Last year, crypto investors lost nearly $3.8 billion to hackers— up from $3.3 billion in 2021—according to a Chainalysis report.
Cryptographic investors lost nearly $3.8 billion last year as a result of hackers, compared to $3.3 billion in 2021, according to a Chainalysis report.
Between September 2020 and December 2022, it is estimated by Solidus Labs that over 200,000 fraudulent tokens were created, leading to more than 2 million investors falling victim to rug pulls and exit scams involving them.
Crypto Chain Analytics Fraud Report (Source: Chain Analytics), The robust labs estimate that more than 200,000 fraudulent chips have been created, which has resulted in over 2 million investors being victimized by carpet removals and exit scams involving them. On April 19, 2022, Peckshield suggested the xtz chip could be a pot-of-honey scam, resulting in a 99.97% drop in 24 hours. Notwithstanding this warning, more than 5,000 crypto investors have slipped into the token. One week earlier, the chip jumped more than 700 per cent in one hour.
The project's website and social media accounts continued to be active even after the significant decline, Which means that even after the discovery of a project, it's a rip-off, under certain circumstances, the interest of investors will be maintained. The project scammers took off with $5.7 million from funds by draining the liquidity pool, using a website with multiple grammatical errors and featuring an anti-dump mechanism.
Dorian Batycka
Contributor at CryptoSlate
Dorian Batycka is a journalist interested in art and technology. Dorian batycka contributor to cryptoslatedorian batycka is an interested journalist of art and technology. Dorian Batycka Collaborator with CryptoSlateDorian Batycka is an art and technology journalist.
AI, Crime, ,
Latest Report
The SEC vs. Paxos: A deep dive into the implications of the lawsuit and its effects on stablecoins
The SEC's notice to Paxos to stop minting BUSD could have longstanding implications on the crypto market. It is available through Twitter and Instagram @temp_projects, often found in financial and art news, scandals, and events.He has already contributed to CoinDesk, Decrypt, Artforum, Artnet News, Art Newspaper, etc.the sec vs. paxos: a deep dive into the implications of the lawsuit and its effects on stablecoinsthe sec's notice to paxos to stop minting busd could have longstanding implications on the crypto market.
The SEC's advice to Paxos to stop hitting BUSD may have long-standing implications in the crypto marketplace.