Scammers are creating fake “ChatGPT” and “Bing” crypto tokens—here’s how to protect yourself (via CNBCMakeIt)
on Feb. 20. The firm has identified at least one of those digital coins as having been created by a user notorious for "pump and dump" crypto schemes.Legally, fraudsters aren't allowed to name their token after ChatGPT, Bing or any other trademarked name without being affiliated with those companies, but it's difficult to crack down on the practice.
"On the one hand, no one needs to allow activity, which potentially allows accessibility and more open financial services," Arad says. "On the other hand, it creates new challenges like this, where scammers take advantage of openness and new tools are needed to simplify and assess risks like fake impersonation tokens."Crypto investors should be wary of newly created tokens that use the name of popular products or celebrities.
The Squid Game token, however, turned out to be a "rug pull" scheme instead. The developers abruptly abandoned the project before the game was set to launch and managed to steal over $3 million from investors in late 2021, says Arad. And they did this simply by using the name of the famous show at the right time when it was trending, he adds.
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