A New Danger in Cryptocurrency: Fake ChatGPT Tokens

Thomas Seattle
Thomas Seattle Crypto
3 Min Read

With numerous reports on the rise of cryptocurrency – based frauds, such as ChatGPT tokens, investors should remain vigilant about these malicious AI-related schemes. Scammers are taking advantage of investors’ curiosity surrounding artificial intelligence technology and exploiting their eagerness to capitalize on the latest trends to make a quick buck. Therefore, it is essential for those considering investing to be aware of this risk and take proper precautions when assessing potential opportunities.

Hundreds of illegitimate tokens with the AI chatbot’s moniker have recently surfaced. 132 of these fraudulent tokens were released on BNB Chain, 25 on Ethereum, and an additional 10 across other blockchains such as Arbitrum, Solana, OKChain, and Cronos.

Malicious People Take Advantage of ChatGPT is Popularity

Scammers have recently been using ChatGPT’s name to make a quick buck in their fraudulent activities. PeckShieldAlert, a security analysis platform, has identified thousands of new tokens dubbed “BingChatGPT” tokens that are being used for deceptive schemes. Out of these cryptocurrencies, three seem to be honeypots with high sell tax rates for those who pay extra coins into them and expect funds back in return.

Conversely, sales tax is a phrase used to describe the amount of money stolen from unsuspecting buyers who purchase tokens via malicious smart contracts.

a new danger in cryptocurrency fake chatgpt tokens

Scammers Took Billions of Dollars

Despite this, the market for honeypots and other crypto-frauds is persistently growing. Chainalysis reported that in 2022, investors lost approximately $3.8 billion to cyberpiracy – a drastic increase from 2021’s record of $3.3 billion in losses. These fraudulent transactions could be linked directly to Microsoft’s decision to incorporate OpenAI chatbots as a search service on their browsers – ChatGPT was constructed by OpenAI; however, Microsoft has customized it with additional features which they claim “outperform” publicly available versions of ChatGPT technology.

In the Face of These Developments, Microsoft and OpenAI are Silent

With Microsoft and OpenAI having not announced any official cryptocurrency initiatives, it is evident that all tokens associated with ChatGPT bearing the companies’ names are fraudulent. Nonetheless, scammers have capitalized on this hype by minting numerous “BingChatGPT” tokens which have earned thousands of dollars in trading volume! Shockingly, some of these fraudsters impose large sales taxes to earn a significant amount when their counterfeit token is sold. Clearly, buyers should be wary of these potentially hazardous investments.

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I graduated from Lancaster University and currently working in the financial services industry. I’m a goal-driven journalist who tracks down personal and corporate finance stories and delivers on deadline and a reporter/editor with extensive experience in newspapers, magazines and the internet in public and private markets, equity and debt, M&A, banking, fintech areas.
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