What Is TruthGPT Coin, and Is It a Scam?

The emergence of new technologies often paves the way for scammers, and the rise of AI-powered tools like ChatGPT is no exception. When you combine this with cryptocurrency and the name of Elon Musk, you have the perfect recipe for a buzzword-driven scam.

One such cryptocurrency drawing attention from authorities is TruthGPT Coin, labeled as an "Artificial Intelligence investment scam" by regulators in Texas. The authorities have called for an immediate halt to the promotion of this scam crypto. But what exactly is TruthGPT Coin?

Interestingly, there are two projects operating under the name "TruthGPT Coin." One operates on the Binance Smart Chain, while the other is an Ethereum ERC-20 token. Both projects seem to use the $TRUTH ticker symbol. It remains unclear whether there is a direct connection between these projects, as their overall approaches differ in terms of quality.

The first project claims to be powered by an in-house AI model called Elon Musk AI. The TruthGPT website is filled with images of Musk, low-quality digital images, fake endorsements, and more. It even includes fake accounts for prominent figures in the crypto world, such as Elon Musk, Satoshi Nakamoto, and Michael Saylor. Upon signing up, users can ask questions to the so-called "AI," but the responses are unusually slow and appear to be written by hand in some instances. The project's whitepaper is vague, lacking information on tokenomics and failing to provide any details about the individuals behind the project. These factors raise numerous red flags associated with scam projects.

On the other hand, the second TruthGPT Coin has associated itself with Elon Musk's TruthGPT AI project to establish a semblance of legitimacy. However, it explicitly states that TruthGPT Coin is a community effort and is not affiliated with Musk. Unlike the first project, it does not use Musk's imagery extensively but frequently references him on its website. This second project claims to use artificial intelligence to seek out and evaluate information for the purpose of achieving a more accurate and reliable understanding of the world.

Considering the allegations against TruthGPT Coin, it seems highly likely that it is indeed a scam. The Texas State Securities Board has issued a cease and desist order to TruthGPT Coin, although this primarily targets the first website featuring the supposed Elon Musk AI, rather than the second project focusing on TruthGPT AI. According to Texan regulators, the developers of the token, known as The Shark of Wall Street and Hedge4.ai, have a history of promoting fake initial coin offerings and scam coins.

The Shark of Wall Street and Hedge4.ai have previously engaged in a series of initial coin offerings (ICOs), releasing tokens on the Ethereum blockchain and Binance Smart Chain. They allegedly hyped the profitability of these tokens through internet websites and social media, claiming connections to a "money-making machine Artificial Intelligence Lab," another cryptocurrency related to African diamond and gold mining, and an asset with the potential to increase by a staggering 1000x. The respondents also purportedly informed investors that staking certain tokens could yield profits of up to 2000% per year.

Other state regulators, including the Alabama Securities Commission, the Montana State Auditor, the Kentucky Department of Financial Institutions, and the New Jersey Securities Bureau, have supported Texas' cease and desist order.

Additionally, the CoinMarketCap entry for TruthGPT Coin raises suspicions. It currently displays a banner warning potential users that the smart contract of the asset can be modified by the contract creator, enabling actions such as disabling selling, changing fees, minting new tokens, or transferring tokens. Caution is advised, and thorough research is essential before engaging with such tokens.