By James Davis
PeckShield, a blockchain security company, alerted the public on Twitter of BingchatGPT scam tokens deployed by 0xb583. Investors should take caution and look out for these tokens. Scammers created the tokens in an organized, almost foolproof plan to defraud unsuspecting investors.
They deployed BingChatGPT on Ethereum and BNB Chain networks. These scammers targeted investors through honeypots, pump and dump schemes, and a high sell tax.
Avenues Deployed by Scammers
In conjunction with these tokens, all have the name BingchatGPT with different symbols. However, three of these tokens are honeypot schemes. Honeypots are designed to attract investors by tricking them into seeing the visible weakness while ignoring the actual vulnerability of the asset.
These contracts allow the original deployer to drain a user’s asset when they send a particular amount of tokens. This design locks the assets and is only available for scammers to drain.
Additionally, two assets have high sell tax of 99% and 100%. This high sell tax was absurd because investors participate in non-profitable sales. In this case, investors cannot gain from this sell tax since they need to pay high fees of 99% and 100%, which would result in losses.
Moreover, PeckShield disclosed that two of the tokens had recorded a decline of 99%. This showed that a pump-and-dump scheme was the motive of the tokens. This scheme lures investors to input their assets in hyped tokens to earn. However, they lose their investments when the hyped token loses value after the creators sell their stake.
The security resource identified one of the addresses linked to these tokens, 0xb538, as a notorious deployer of pump-and-dump tokens.
AI Tech Rallies
This scamming event took place just when there were rallies by AI tech in the sensitization of AI tokens, during the period when AI tech has been more hyped than ever before. These rallies by top AI tech companies will occur later this year.
These rallies aimed to create and build knowledge across the community on how investors can invest using AI. They also focused on networking. With a bright future in developing new technologies, these events are toured to be regular. Investment using AI is now a cutting-edge technology in investment management.