PeckShield Discovers Pump And Dump Tokens Linked To ChatGPT
February 21 2023 - 7:45AM
NEWSBTC
In a recent report on Twitter, a blockchain security firm,
Peckshield, revealed several Ponzi scheme tokens linked to a
popular chatbot, ChatGPT. As per the report, many tokens have lost
more than 60% of their value after creation. PeckShield
provides products and services to improve the blockchain system’s
security, usability, and privacy. These services allow clients to
figure out vulnerable areas within their system and create a
suitable approach to handle them. Its recent findings center on
pump-and-dump digital currencies. Related Reading: Shiba Inu Jumps
4% As Lead Dev Answers ‘When Shibarium’ Peckshield Discovers Dozens
Of Pump And Dump Tokens PeckShield’s post states that three of the
dozens of BingChatGPT tokens are connected to honeypot schemes.
This system typically allows the perpetrators to trick users into
releasing their Ether holdings. The company noted that two of these
three coins have already lost almost 100% of their initial value.
Meanwhile, the third one has declined by about 65%. This shows that
the tokens are a typical example of rug pulls or pump-and-dump
schemes. Perpetrators of this scheme usually create a campaign or
system that misleads investors, tricking them into purchasing
tokens. Then, when the prices of these coins appreciate, the
scammers secretly sell them off, leaving investors with nearly
nothing. Related Reading: Shiba Inu Whale Scoops 50 Billion SHIB In
Single Day After Earlier Ditching Bigger Amount According to the
blockchain security firm, one of the culprits who pioneered the
scheme of creating dozens of tokens was Deployer 0xb583. However,
the company failed to mention why the culprits chose to use the
name BingChatGPT for the scam tokens. It could be that the
perpetrators were leveraging the announcement about the chatbot
released on February 8. The announcement noted that OpenAI’s
ChatGPT tech works with the Edge browser of Microsoft and Bing. So
the token’s name might be a way to make investors believe it’s
connected to Microsoft, leveraging the AI chatbot hype. Other
Instances Of Pump And Dump Tokens Another report from a blockchain
analytics firm, Chainalysis, about 10,000 newly released digital
tokens in 2022 had the potential of being pump-and-dump tokens. The
firm further cited that out of the 1.1 million digital tokens
launched in 2022, investors transacted with around 40,521 only. It
also noted that this set of tokens had not less than 10 swaps on 4
consecutive trading days in the week after their release. The
blockchain analytics firm also stated that out of the 40,521 tokens
that gained traction after their launch in 2022, about 24%, or
9,902, witnessed a decline in their prices within their first
trading week. This is also a possible sign of a pump-and-dump
scheme. Although a drop in the price of a token is not enough to
dim it as a pump-and-dump scheme, the firm cited that 25 of them
showed clear signs of being fraud tokens after a close
investigation. These coins had a malicious honeypot code that
restrained new investors and buyers from selling them. Featured
image from Pixabay, Chart from TradingView.com
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