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Fake ChatGPT tokens flood the market, reaching a $300M market cap

TL;DR

  • Crypto Scamers venture into ChatGPT fake tokens to swindle investors
  • The ChatGPT tokens have accumulated over $250 Million in Market Cap
  • Elon Musk calls on the AI to be shut down amid telling lies to users

Swindlers are attempting to profit off the popularity of ChatGPT, which has gone viral in recent months. The most recent scam involves releasing fake tokens with the chatbot’s name that are unaffiliated with the chatbot officially. Hundreds of counterfeit tokens, the majority on BNB Chain, have been issued.

132 ChatGPT tokens have been issued on BNB Chain, 25 on Ethereum, and 10 on other blockchains, including Solana, Arbitrum, OKChain, and Cronos.

ChatGPT tokens hit the DeFi markets

Scammers issued a number of liquidity-filled “BingChatGPT,” which are enjoying high trade volumes despite warning indicators. Three of the coins discovered by blockchain sleuth PeckShield are claimed to resemble honeypots – smart contracts that appear to be leaking funds as long as the user continues to transmit money to them.

These scams follow Microsoft’s decision to integrate OpenAI’s chatbots for search services inside Microsoft’s internet browsers. While OpenAI created ChatGPT, Microsoft’s chatbot is a custom tool that is supposed to be an enhancement of the publicly available ChatGPT.

PeckShield spotted dozens of newly produced BingChatGPT tokens, three of which look to be #honeypots and two of which have a high sell tax, according to reports. Nevertheless, two of them have already plunged by more than 99%. Using a pump and dump method, Deployer 0xb583 has already produced dozens of tokens. Peckshield continued, referring to the malevolent issuer of these tokens’ wallet addresses.

In this sense, sales tax refers to the amount collected by an illegal smart contract when an entity sells a connected token. It is usually greater than 50%. That instance, if you sell tokens for $200, you will only receive $100. The remainder will be paid to the smart contract developer as a tax.

ChatGPT tokens market cap grows

In crypto, honeypots are smart contracts that pretend to leak their cash to an arbitrary user, provided that the user contributes extra coins to it. At writing time on Tuesday, there are over 170 ChatGPT-branded tokens released on decentralized exchanges such as Uniswap and PancakeSwap, data from DEXTools reveal.

The most popular coin has a market capitalization of over $250 million, more than 300 unique holders, and $600,000 in liquidity; it is issued on Ethereum. A separate BNB Chain version has liquidity of $246,000 and a market cap of $24 million.

Trade volumes on these bogus tokens – and in some cases, scams – are evidence that the crypto betting fantasy is still alive and thriving.

Elon Musk calls for the AI to be shut down

Microsoft recently integrated OpenAI’s chatbot technology into its Bing search engine. This was done to improve its ability to respond to user inquiries. But, those in space have been skeptical about the claim.

Elon Musk, for example, said last week that Microsoft’s ChatGPT-based Bing AI is unsafe and should be shut down. He acknowledged that the system is “behaving psychotically” and lies to users.  He also thought Bing’s ChatGPT sounded oddly familiar to artificial intelligence that “goes haywire and kills everyone.” In addition, Dogecoin creator Billy Markus recently referred to one of the bot’s comments as “hilariously demented.”

Creating a new coin is not particularly laborious. As a result, continuing trends continue to inspire new product introductions. Will Smith Inu was launched when the Will Smith Oscar assaulted Chris Rock at the Oscars. Similarly, during the height of the Squid Game craze, a specialized cryptocurrency was introduced.

In the meantime, fraudsters took advantage of the fame and acceptance of the Solana-based humor coin Bonk among community members to establish an apparently fraudulent token with the same name on Polygon. The project’s price plummeted by 97%, prompting many to expressly allege on Twitter that it was a scam.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

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Florence Muchai

Florence is a crypto enthusiast and writer who loves to travel. As a digital nomad, she explores the transformative power of blockchain technology. Her writing reflects the limitless possibilities for humanity to connect and grow.

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