By Curtis Dye
PeckShield has issued a broad caution to investors in the cryptocurrency industry through a recent tweet. The statement is directed at investors in the cryptocurrency sector and serves as a warning about the risks associated with cryptocurrencies allegedly generated by ChatGPT.
The security team made a discovery that led them to one address, which they used to investigate further. According to their findings, that address was ultimately responsible for the circulation of thirteen different cryptocurrencies. Two of the projects that were built give their tokens the name BingChatGPT, which calls to mind the fact that Bing has included its very own implementation of ChatGPT into its search engine.
In addition to scams that are developed specifically to defraud investors of their money, there are also others that have a high rate of sales. When an investor buys a currency, they are only able to sell it at a greatly lower price, and it is the responsibility of the issuer of the coin to make any required adjustments.
The pump-and-dump strategy
According to Peckshield, at least two of the tokens that have been discovered have already lost virtually all of their value, while a third has lost 65% of its value as a result of an activity that is sometimes referred to as a “pump and dump” scam or a “rug pull.”
Also read:A recent study conducted by Chainalysis called attention to pump and dump movements by claiming that the moving modality is still on the rise. This statement was included in the study to draw emphasis to these types of movements.
According to the Blockchain analytics company, there were 1.1 million tokens released in 2018, but only 40,521 had an “effect on the crypto ecosystem.” This means that there were at least 10 swaps during four consecutive days of trading in the week after their introduction.
Moreover, around 9,902 (or 24%) of the 40,521 tokens created in 2022 that got enough momentum to be worth studying saw a price drop in the first week, suggesting likely pump-and-dump activities.
The industry is now prone to scams
To add insult to injury, there are supposedly many disadvantages associated with crypto tokens. Some of the most notable ones include things like false initial coin offers (ICOs), Ponzi schemes, and projects that never really came to fruition.
The launch of ChatGPT resulted in a number of different cryptocurrencies being assessed with the use of artificial intelligence. This was evidence that the market became more active as a direct consequence of the announcement.
The most recent caution, on the other hand, illustrates that a wide variety of fraudulent schemes may also arise, which may result in monetary losses for investors.
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