Nefarious market participants are attempting to cash in on the ongoing ChatGPT craze in technology circles by issuing fake tokens branded after the artificial intelligence chatbot despite having no official association with the tool.
Hundreds of such tokens have been issued in the past few weeks. Of these, 132 different tokens have been issued on BNB Chain, 25 tokens on Ethereum, and 10 separate tokens on other blockchains such as Solana, Arbitrum, OKChain, and Cronos.
These fake issuances follow software giant Microsoft’s move to integrate OpenAI’s chatbots for search services on Microsoft’s internet browsers.
While OpenAI is the creator of ChatGPT, Microsoft’s own chatbot is a bespoke tool and is said to be an improvement over the publicly accessible ChatGPT.
Scammers are not wasting a chance to monetize on the hype, however. Several “BingChatGPT” have been issued, seeded with liquidity, and are seeing thousands of dollars in trading volumes – despite red flags.
“PeckShield has detected dozens of newly created #BingChatGPT tokens, of which 3 appear to be #honeypots & 2 have high sell tax,” blockchain security firm PeckShield said in a tweet Monday.
“2 of them have already dropped over -99%. Deployer 0xb583 has already created dozens of tokens with a pump & dump scheme,” PeckShield added, referring to the wallet address of the nefarious issuer of these tokens.
In cryptocurrency, honeypots are smart contracts that pretend to leak their funds to an arbitrary user, provided that the user sends additional funds to it.
On the other hand, sales tax refers to the intentional amount of money taken by an illicit smart contract when a related token is sold – usually amounts higher than 50%, meaning a user selling $100 worth of a token receives only $50 worth, with the remaining “taxed” amount going to the developer of that smart contact.
At writing time on Tuesday, there are over 170 ChatGPT-branded tokens issued on decentralized exchanges such as Uniswap and PancakeSwap, data from DEXTools shows.
The most popular one has a market capitalization of over $250 million, with over 300 unique holders and $600,000 in liquidity, and is issued on Ethereum. A separate BNB Chain-version has $246,000 in liquidity and a market capitalization of $24 million.
Trading volumes on such fake tokens – and scams in some cases – are a glimpse of the crypto punting dream being alive and well.
ChatGPT has stolen the headlines as one of the most impressive technology releases of 2022. Initially unveiled to highlight the capabilities of the upcoming GPT-4, ChatGPT quickly transcended the boundaries of the artificial intelligence (AI) space to become a pop culture phenomenon. For the first time in history, we are seeing AI actively discussed all the way from mainstream media outlets to dinner conversations. The fact that an obscure area of AI was going to cause this revolution was unfathomable just a year ago.
Jesus Rodriguez is the CEO of IntoTheBlock.
ChatGPT is the latest in a family of large generative language models (LLM) that are clearly transforming the nature of content creation, application development, and user experience. The speculations of how ChatGPT and the upcoming GPT-4 type technologies might impact different industries have run high and wild and Web3 is not the exception.
The hype about the possibilities of ChatGPT has certainly found its way to the Web3 space. In recent weeks, crypto media outlets have openly discussed the role that ChatGPT can play in ending Google’s dominance, completely automating smart contract development, and making Web3 the dominant architecture paradigm. A different perspective becomes apparent once you look into the specific capabilities and limitations of ChatGPT and match it to the current state of Web3 technologies.
For all the hype around ChatGPT, there has been very little discussion about the specific capabilities and differentiators of the model. ChatGPT represents a major evolution in OpenAI’s GPT family of models but that evolution has materialized in a very specific dimension. The main difference between ChatGPT and its predecessors is that the former is key to following instructions. Models like GPT-3 were able to perform a handful of language tasks such as summarization, question answering, or text completion based on carefully curated prompts.
However, GPT-3 exhibited major limitations following more generic instructions. In early 2022, OpenAI quietly unveiled InstructGPT, a fine-tuned version of GPT-3 that uses a technique called reinforcement learning with human feedback (RLHF) to better follow human intents. OpenAI published the research behind RLHF back in 2017 and went mostly unnoticed until InstructGPT was created. InstructGPT is the crown jewel at the center of ChatGPT and one of the key differentiators from its predecessors. These days, when you are using the OpenAI API by default it uses InstructGPT.
The AI community recently started referring to models such as ChatGPT with the term “foundation models.” Quoted by Stanford University, this term refers to the unique character of these models to be fine-tuned for specific scenarios. For instance, OpenAI created Codex, a new fine-tuned version of GPT-3 to generate programming language code that is powering programs such as GitHub CoPilot. Codex is also integrated into ChatGPT.
Now that we understand the core capabilities and differentiators of ChatGPT, we can extrapolate those to our Web3 universe and start dreaming about the potential.
ChatGPT in a Web3 world
The foundation model revolution with platforms such as ChatGPT is going to deeply influence how software is created and experienced across the entire technology market. Web3 also represents a new paradigm for distributed computing, so the combination with foundation models like ChatGPT offers a blank canvas full of opportunities. Some of those opportunities are already possible with today’s technologies.
Explorers are the search experience in Web3 and the core building block for human interactions with blockchains. However, the user experience of blockchain explorers is designed for domain experts. Imagine an explorer powered by a fine-tuned version of ChatGPT for blockchain activity. In that experience, a normal user could ask questions such as “Any large institutions transferring funds to Binance?” “When was the last time something similar happened?” or “Are there any interesting patterns in the recent transaction activity?” Search is one of the experiences that might be reimagined with technologies like ChatGPT, and explorers could be a perfect candidate.
Smart contract development assistants
Programming smart contracts remains a highly sophisticated task for developers. ChatGPT components such as Codex are able to generate Solidity code from language descriptions. Imagine a smart contract assistant in which a developer can type something like “What’s the solidity code to request a flash loan in Aave?” and it will generate the corresponding smart contract code snippet.
Smart contract audits are slow, expensive, and tedious processes that are nonetheless necessary. A large majority of the auditing process relies on executing tests that are quite often not obvious to smart contract developers. Imagine having a fine-tuned version of ChatGPT for smart contract audits that could take a language input such as “and run a battery of tests in a given smart contract.
Arguably one of the most obvious applications of models such as ChatGPT is to enable a new generation of non-fungible tokens (NFT) that incorporate conversational intelligence. Imagine a version of your favorite NFT collection that allows you to ask questions about the creator’s inspiration or specific artistic details.
Wallets are the main entry point for interactions with decentralized applications (apps) in the Web3 world. Just as the user experience in Web2 applications is being reimagined with foundational models such as ChatGPT as a fundamental construct, we can think of a similar trend for crypto wallets. Imagine a wallet experience in which a user can simply express their intentions to perform a transaction, request information or execute specific tasks simply using natural language. The conversation is going to be one of the most interesting trends in Web3 user experience in the next few years.
Web3 in a ChatGPT world
Foundational models such as ChatGPT will, undoubtedly, enable a new generation of capabilities in decentralized applications, but Web3 can play an interesting role in the infrastructure powering these models. Auditability is one of the key concerns around the emergence of models like ChatGPT. Understanding the causes of harmful, fake, unbiased, or unfair content has been at the center of the debate for the mainstream adoption of ChatGPT and similar models. Distributed ledgers are the perfect technology to enable trustless transparency and auditability for models such as ChatGPT.
Pre-training and fine-tuning are other aspects in which Web3 platforms can contribute to models like ChatGPT. The computational requirements for pre-training or fine-tuning foundation model results are prohibited for most organizations. Decentralized computation networks such as blockchains can enable scalable computation economies that can facilitate the pre-training or fine-tuning of models like ChatGPT.
Not just ChatGPT
ChatGPT and the upcoming GPT-4 release represent some of the most overhyped technologies of the last few decades. While it might be easy to get caught up in the hype, the transformational impact of these models is real and it definitely applies to Web3. One thing to understand is that ChatGPT won’t stand alone in this area much longer.
Companies such as Google with its model LaMDA, DeepMind with Sparrow, Anthropic with Claude, and Stability AI with an open-source version of ChatGPT are likely to become relevant players in this market in the next few months. In the Web3 world, these models will power new experiences for how to author and interact with smart contracts, apps, Wallets, decentralized finance (DeFi) protocols, NFTs, and pretty much every area of the ecosystem. The era of language models in Web3 is here and ChatGPT is just the beginning.
SPiCE VC co-founder and managing partner Tal Elyashiv discusses the “pressure” on VC firms to make timely investment decisions in the past few years and adds that the same fate is “beginning to happen with generative AI companies that are now the new shiny object.”
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