- Scammers issued a number of liquidity-filled “BingChatGPT,” which achieved huge trading volumes
- Market cap of the most popular token was over $250 million
ChatGPT has gone viral, and scammers are attempting to cash in on the craze. The latest scam involves issuing fake tokens with the AI’s name, which are not associated with the chatbot officially. Hundreds of fake tokens have been issued, most of which on BNB Chain, CoinDesk wrote.
The highest number of tokens – 132 – was on Binance’s blockchain. 25 were issued on Ethereum and a few on Solana, Cronos, and Arbitrum.
The tokens are “honeypots”
Scammers issued a number of liquidity-filled “BingChatGPT,” which are enjoying huge trading volumes despite warning signs. Three of the tokens detected by blockchain sleuth PeckShield are said to look like honeypots – smart contracts that make it seem like they’re leaking funds as long as the user keeps sending money to them.
50% “sales tax”
Two tokens have a huge sales tax. One deployer applied a pump and dump scheme to create a multitude of tokens, two of which had lost almost all of their value at the time of writing.
In this context, sales tax refers to a sum an illegal smart contract takes when an entity sells a related token. In most cases, it’s higher than 50%. This means that if you sell tokens for $200, you’ll get just $100. The rest will go to the smart contract developer in the form of a tax.
Biggest token has $250M market cap
Almost two hundred ChatGPT-branded tokens were issued on PancakeSwap, Uniswap, and other decentralized exchanges according to data from DEXTools. The market cap of the most popular token was over $250 million. It was issued on the Ethereum Mainnet, had more than half a million of liquidity and boasted hundreds of unique holders.
There was a second version of it on BNB Chain, which had a market cap of $24 million and liquidity of $246,000.
The dream of a crypto windfall seems to be alive and well if we are to judge by the fake tokens’ trading volumes.
