Why traders need to be aware of ChatGPT, Bing AI Chat inspired scam tokens on Binance’s BNB Chain

A slew of tokens that piggyback on popular Artificial Intelligence (AI) projects like ChatGPT and Bing AI Chat has crowded the BNB chain. Investigators at PeckShield identified dozens of newly created BingChatGPT tokens and experts believe these are “pump and dump” scams. Tokens of two projects on PeckShield’s radar have already plummeted by 99%. 

Also read: Why the crypto China narrative is not bullish for Bitcoin and Ethereum prices

Dozens of scam tokens emerge with the Bing AI Chat and ChatGPT name

PeckShieldAlert detected dozens of newly created scam tokens that derive their name from popular Artificial Intelligence chatbots like Bing Chat and ChatGPT. The tokens that the experts at PeckShield are tracking appear to be honeypots and two of them witnessed a steep 99% decline in their prices. 

A honeypot is a type of crypto scam in which the scammers promise users that they will be sent additional funds if they transfer an initial sum, only to never see their money again. 

Projects on PeckShield’s radar 

Most of the projects listed above are hosted on Binance’s BNB Chain and Ethereum. Experts at the blockchain security firm have identified another 170 projects using the ChatGPT name and BNB chain as the most common protocol on which the tokens have been issued. 

The firm identified deployers that have created dozens of tokens with a pump and dump scheme. Since the AI-narrative gathered steam, it triggered a rally in tokens of projects like Singularity.Net and Fetch.AI. At the same time, several scams that use popular chatbot names sprung up, with tokens losing their entire value within a short period of time. 

While no official crypto projects or tokens were announced as part of Microsoft’s plans for Bing, the crypto ecosystem is riddled with scam tokens inspired by the “Bing” name.