Scammers Create Fake ChatGPT Tokens, Targeting Crypto Enthusiasts

Major Insights-

  • Scammers are creating fraudulent tokens that mimic the ChatGPT name to take advantage of its popularity.
  • Over 170 ChatGPT-branded tokens are available on decentralized exchanges, with some already being involved in “pump-and-dump” or “rug pull” scams.
  • Investors should be cautious and do their due diligence when investing in new tokens to avoid falling victim to these scams.

Overview

Scammers are using the hype surrounding the ChatGPT artificial intelligence chatbot to create fraudulent tokens that mimic its name. These fake tokens have been released in the hundreds in recent weeks, with more than 170 ChatGPT-branded tokens available on decentralized exchanges like Uniswap and PancakeSwap.

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Types of Fraudulent Tokens

Of the fake tokens created, 132 unique tokens have been made on the BNB Chain, 25 on the Ethereum blockchain, and 10 on other blockchains such as Cronos, Solana, Arbitrum, and OKChain. The most widely used token is traded on Ethereum, with a market valuation of over $250 million, over 300 distinct holders, and liquidity of $600,000.

Scams and Losses

Some of these fraudulent tokens have already undergone “pump-and-dump” or “rug pull” scams, leading to the majority, if not the entirety, of their value being lost. Despite having no connection to the AI-powered chatbot technology, these ChatGPT tokens are still enticing crypto enthusiasts.

Warning Signs

Con artists are not passing up the chance to profit from the buzz. Several “BingChatGPT” tokens have been issued, seeded with liquidity, and seeing thousands of dollars in trading volumes. PeckShield, a blockchain security company, has warned that it discovered dozens of newly produced BingChatGPT tokens, of which three appear to be honeypots, and two have high sell tax.

Similar Scams

In the cryptocurrency world, fake tokens are nothing new. As soon as a project gains popularity, scammers enter the scene and use dirty tactics to deceive investors. Famous Twitter alternative Damus revealed earlier this month that at least 15 fake tokens are floating around. Even the insolvent FTX couldn’t escape the dangers of bogus tokens, with the recovery team responsible for the FTX bankruptcy issuing a warning to investors to be wary of fraudulent tokens.

Read Also – The Rise Of Stablecoins: A Comprehensive Overview

Conclusion

Investors should exercise caution and do their due diligence when investing in new tokens. The rise in fraudulent tokens is a reminder that the cryptocurrency market is still vulnerable to scams, and investors must be vigilant in protecting their investments.



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