Chatbot Trend In The Cryptocurrency Market: Beware Of Scams Allegedly Linked To ChatGPT

Apr 17, 2023 at 09:50 // News
Nina Lyon
Chatbot fever has grown rapidly and has received massive media support worldwide

OpenAI, an artificial intelligence research laboratory that has recently represented ChatGPT, GPT-4 and many other products, has not made an official launch of any of the cryptocurrencies associated with ChatGPT.

Since the launch of the ChatGPT chatbot, the fever has grown rapidly and has received massive media support worldwide. The history of the cryptocurrency market is full of a list of altcoins with "trending" names, but without technical or financial support. Usually, the use of trending terms leads to nothing but fraud or theft.

So far, one of the words that have become trendy in 2023 is a "chatbot" and "chatgpt" in particular. There is no doubt that someone will manipulate with the name of some chatbots to create another cryptocurrency or fake the creation of the coin.

When piranhas smell the blood

Currently, there are over 14 tokens that mention "GPT" in their name listed on CoinMarketCap, and many more can be found on the Internet.

CNBC has already mentioned the BingChatGPT coin, which has been released but has no confirmed connection to Bing or Microsoft. So far, OpenAI, the developer of ChatGPT, has announced an official launch of one of the cryptocurrencies associated with ChatGPT.

Coin with a market capitalization of zero and no whitepaper

Another token has recently attracted the attention of cryptocurrency enthusiasts. The appearance of the coin named CryptoGPT on the market raises more questions than answers. The coin was listed in February 2023, but it seems to already have some supporters. 

The website claims to allow users "to "earn money by monetizing data from fitness, dating, gaming, and education." Indeed, a rather eye-catching list that looks more like a list of popular keywords for today's teens.

Recently, the coin's founders announced that they had raised $10 million. This information was published by CoinDesk, but it does not seem to have been double-checked before publication.

The "price" of the coin has been steadily increasing, but none of the price charts give complete and evaluated information yet. Several cryptocurrency market analysis platforms provide different information. Binance provides information about the price of coinGPT, but the calculated market capitalization shows 0 USD. Coinmarketcap gives a market capitalization of 13 million so far, but warns its users that this information is not verified and only gives the information provided by the website of CryptoGPT itself.

Several blogs have already reproduced the note of Jason Yanowitz, the founder of Blockworks. He points out doubts about the founders of the CryptoGPT project.

Another serious point is that unlike any trusted cryptocurrency coin, CryptoGPT does not have a whitepaper or any other technical document. The only thing they provide is a litepaper - a shortened and concise version of a whitepaper and a plan for 2023. To date, it seems that the company has no intentions of creating a business that would develop beyond 2023.

All of this gives us not one, but a whole bunch of red flags to wave at the top of the cryptocurrency "stay away" coin mountain.

Not everything that "can talk" is a chatbot

Several cases of phishing with chatbots have already been reported recently. According to the report, individuals received phishing emails promising access to AI chatbot technology just a day after its launch and before it was available to the masses. The emails offered recipients the opportunity to purchase an OpenAI crypto token that would give them access to GPT-4. The email looked legitimate, with the company logo and brand color, but was nothing more than poorly written phishing. By clicking the link in the email, users were redirected to their crypto wallets. Once they were linked, the scammers took out the entire wallet.

Double check everything or lose everything

Investors in cryptocurrencies are always warned about the risks of investing in tokens about which they do not have enough information. If you decide to invest in cryptocurrencies, do it responsibly.

As has already written, there is a list of measures that every investor must perform beforehand to minimize the risk of being scammed.

Here is a short list of points that users should always double check and analyze:

  • Unrealistic numbers and promises of profits. Regardless of trends, startups can never guarantee a profit or predict the number of users they're certain to have. There can be no certainty of future revenues. If a project claims that its token will become very expensive over time, it's most likely a lie and a trick.

  • The team. If the project is a scam, you'd easily find strange patterns in the team's list - newly created social media accounts, unverifiable experience, limited number of photos, etc. In most cases, they just find a few pictures online and use them as pictures of their CEOs, CTOs and consultants.

  • Whitepaper. This document should describe what the project is about, what, how and when it'll be done. A decent white paper is very elaborate and usually requires a lot of time (and sometimes money), which scammers can't afford or don't want, since their main target audience is people who don't want to spend their time reading boring papers.

  • Waste of money. If we talk about IT and cryptocurrencies, it's important that most of the money goes into the further development of the product. Spending something on marketing is generally fine, but if a project prioritizes payments to some experts, lawyers and meetings, it's a warning sign.

  • Technology. Any project that promises to use the money raised to launch a product is trying to get easy money. They should develop their product, not just start working on it.

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