Scammers Cash In On ChatGPT's Popularity: Fake Binance, Ethereum Tokens Flooding Market

Zinger Key Points
  • Fake tokens capitalizing on ChatGPT craze, with hundreds of tokens being issued across multiple blockchains.
  • Scammers seed tokens with liquidity despite red flags.

The rise of the ChatGPT artificial intelligence chatbot has created a buzz in the tech world, and scammers are trying to exploit this trend by issuing fake tokens that are branded with the ChatGPT name.

These tokens have no official association with the actual tool, and the scammers are taking advantage of the hype to make a quick profit.

The number of these fake tokens has risen to hundreds, with 132 issued on BNB BNB/USD Chain, 25 on Ethereum ETH/USD, and 10 on other blockchains, including Solana SOL/USD, Arbitrum, OKChain, and Cronos CRO/USD.

While Microsoft has integrated OpenAI's chatbots for its search services, its own chatbot is different from ChatGPT. Unfortunately, scammers have created fake tokens, such as "BingChatGPT," and even seeded them with liquidity. Despite numerous red flags, some of these tokens are seeing high trading volumes and thousands of dollars in profits.

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Blockchain security firm Peckshield has discovered dozens of newly-created BingChatGPT tokens, some of which appear to be honeypots or have high sell tax, meaning that a user may be giving up a large portion of their funds unknowingly. Some of these tokens have already dropped by over 99%, and the issuer of these fake tokens has deployed dozens of tokens using a pump-and-dump scheme.

According to data from DEXTools, there are now over 170 ChatGPT-branded tokens issued on decentralized exchanges such as Uniswap and PancakeSwap.

The most popular token has a market capitalization of over $250 million and is issued on Ethereum, with over 300 unique holders and $600,000 in liquidity.

Another version of the token, issued on the BNB Chain, has $246,000 in liquidity and a market capitalization of $24 million.

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Posted In: CryptocurrencyNewsMarketsartificial intelligenceBlockchainChatGPTDecentralized ExchangesHoneypotsMicrosoftOpenAiPancakeSwapSell taxUniSwap
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