BlockGPT Appears Rug Pull With Damage $256,000

According to PeckShieldAlert’s warning, a rug pull occurred in the BlockGPT project on the BSC chain, and more than 816 BNBs (about $256,000) were lost. So far, 800 BNBs have been transferred to Tornado Cash. The price of BGPT has dropped by about 52% in the past hour.

#PeckShieldAlert Seems like @BlockGPT_BSC rugged ~816 $BNB (~$256K), $BGPT has dropped -52% within the last hour. ~800 $BNB has already been transferred into Tornado Cashhttps://t.co/T3J9IYn0Ul pic.twitter.com/j7ehGbOrtb

— PeckShieldAlert (@PeckShieldAlert) May 30, 2023

A rug pull is a kind of fraud in which a cryptocurrency or NFT developer hypes a project in order to gather investor funds, only to abruptly shut down or leave, taking investor assets with them. The phrase “to pull the rug out from under someone” refers to throwing the person off balance and scrambling.

A rug pull often starts with the creation of a new cryptocurrency token, which is then posted on a decentralized market and coupled with a coin from a dominant platform, such as Ethereum. Fraudsters then use social media marketing to lure a community of investors by establishing a buzz-worthy, hype-filled advertising campaign across a variety of venues. These frauds often dangle bogus promises of too-good-to-be-true returns or assign membership in a Ponzi scheme. With enough traction, a platform’s reach grows in tandem with the value of its token. As the price reaches its high, the core development team sells their tokens, which are then in the treasury of investor funds.

BlockGPT, according to the company, seeks to establish a decentralized, token-governed chatbot on the blockchain with features comparable to OpenAI’s ChatGPT. However, all that is now in the past.

According to Coincu’s investigation, the project’s official Twitter account and website are currently inaccessible.

Earlier, a white paper on the BlockGPT website claims that the firm is deploying more than six generative pre-trained transformers (GPT) models on the platform, which were trained using a proprietary dataset. The document does not specify the size of the corpus, the number of parameters used to train the model or any other technical specifics for the AI, but it does state that it was expressly created to answer blockchain-related inquiries.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Source