• Crypto scams are becoming more sophisticated as AI-enabled tools become more prevalent.
• Scammers are leveraging the hype around AI tools to create tokens and generate a fake following on social media platforms.
• These fake accounts can be used to give the illusion of credibility and popularity, undermining social proof-of-work in the crypto industry.
Rise of AI Could Lead to More Crypto Scams
The integration of artificial intelligence (AI) into the cryptocurrency industry has been long awaited by many, mainly for its ability to help combat existing scams in the space. However, experts are overlooking how this technology could be used for malicious activities as well.
AI Tools Used by Hackers
Meta recently reported that hackers were taking advantage of OpenAI’s ChatGPT tool in attempts to gain access to Facebook accounts. DEXTools found over 700 token trading pairs that mentioned either “ChatGPT” or “OpenAI,” showing how scammers are using these AI tools to create tokens even though OpenAI hasn’t officially announced any plans related to blockchain technology yet.
Scam Projects Leveraging Social Media Platforms
Social media platforms have become popular channels for promoting new scam coins online due to their widespread reach and influence. Scammers use AI-powered tools to amplify their reach and create a seemingly loyal fanbase with thousands of people within a short period, giving them an aura of credibility and popularity without any real research or effort on their part.
Undermining Social Proof-of-Work
Crypto projects tend to gain trust when they appear popular with a large following, as it suggests others have done enough research before investing. However, AI can challenge this assumption and make it difficult for investors to distinguish between legitimate projects with genuine followings from ones created by scammers using automated bots behind the scenes.