Fake DeepSeek Crypto Token Sees Brief Surge Amid AI App Popularity
A cryptocurrency token named after the Chinese artificial intelligence (AI) application DeepSeek briefly achieved a market capitalization exceeding $48 million on January 27, driven by significant trading activity. This surge occurred despite the token having no official connection to the popular AI app.
The Solana-based token, created on January 4, saw a trading volume of $150 million, according to data from Solana token aggregator Birdeye. This surge coincided with DeepSeek’s app gaining widespread attention, including topping the US Apple App Store rankings. However, the token's value quickly declined to $30 million. Another similarly named token capitalizing on the app's popularity briefly reached a $13 million market cap before falling to $8.6 million. Despite creators attempts to link the token to DeepSeek's official online presence, DeepSeek has explicitly stated they are not involved with any cryptocurrency tokens and cautioned users about potential scams.
The AI app’s increasing popularity has generated substantial discussion within the cryptocurrency community. It has also occurred during a period of focus on AI development and its implications on global markets.
The emergence of these fake tokens highlights a growing trend of scams associated with popular trends and figures. This also follows similar patterns observed with other instances, where fraudulent digital assets have emerged following popular figures. Security firm Blockaid previously reported a surge in fraudulent tokens connected to other public figures, demonstrating the persistence of such scams within the digital asset space. Crypto investigator ZachXBT has also warned of increasing instances where social media accounts are compromised to promote these fraudulent tokens.
The situation with the DeepSeek-related tokens serves as a reminder for individuals to exercise caution and conduct thorough research before investing in any cryptocurrency, especially those associated with trending topics or individuals. It reinforces the importance of verifying the legitimacy of any digital asset and remaining vigilant against potential scams.