Fake Bing ChatGPT Tokens Pop Up Amid AI Hype

Muhammad Naeem

Blogger

After Microsoft unveiled an AI-powered version of its search engine Bing, scammers started selling tokens to try to take advantage of the excitement surrounding the new product. Microsoft recently launched a new search engine that uses the same technology as OpenAI's ChatGPT. This has created a rivalry with Google in the artificial intelligence space. There is also growing interested in AI-related tokens such as Fetch, SingularityNET, and Ocean Protocol in the cryptocurrency market. These tokens have become more valuable as investors try to take advantage of the trend.

Unfortunately, the increased interest in AI and cryptocurrency has given rise to fake tokens posing as well-known brands.

According to a search on DEXTools, at least 20 are currently using the name BingChatGPT. Twelve of these are on Binance's BNB Chain, another 6 on Ethereum and 2 on Arbitrum.

Another 170 are using the ChatGPT name, with BNB being the most commonly issued protocol. Keep in mind that no official crypto projects or tokens have been announced as part of Microsoft's Bing plans.

Chat GPT Fake Tokens

PeckShield, a crypto-security firm, said in a tweet about the proliferation of BingChatGPT that at least three of the tokens using the BingChatGPT name appear to be honeypots.

A honeypot is a type of cryptocurrency scam in which the fraudster promises users that if they transfer an initial sum, they will be sent additional funds – but the investors never see their money again. Two of the tokens posing as Bing-related schemes also have extremely high sales taxes, implying that the issuer will take a sizable cut of any proceeds generated when a token is sold—in this case, 99% or even 100% of funds. Another of the BingChatGPT tokens, however, seems to have been produced by a prolific hacker known as "Deployer 0xb583," whose previously deployed coins include ones with names that refer to the founder of Tesla, Elon Musk, and the former UK Prime Minister, Liz Truss. Despite PeckShield's lack of an explanation, the bad actors may be attempting to capitalize on the February 7 announcement that OpenAI's ChatGPT technology will be incorporated into Bing and Microsoft's Edge web browser.

The token's name may be an attempt to capitalize on the hype surrounding AI chatbots by tricking victims into thinking they are somehow affiliated with Microsoft.

A report published on Feb. 16 by the blockchain analytics company Chainalysis noted that nearly 10,000 new tokens expected to be introduced in 2022 met all the criteria for pump-and-dump schemes.

1.1 million tokens were launched last year, but only 40,521 of those had an "impact on the crypto ecosystem," as measured by at least ten swaps over four straight trading days after their launch, according to the Blockchain analytics company.

Out of the 40,521 tokens launched in 2022 that attracted enough interest to be worth analyzing, 9,902, or 24%, experienced a price decline in the first week that may have been caused by pump and dump activity, according to the firm. The company looked at 25 in particular and found that "they were almost certainly designed for a pump and dump," complete with malicious honeypot code that prevents new buyers from selling the token. However, a price decline alone does not always mean that the people who created the token did something wrong.

Conclusion

It is very necessary for investors and traders to stay vigilant and do their own research before investing in any tokens. Since these tokens have no actual purpose, they are not very likely to survive the current regulatory trends.