Spot the Scams: Fake DeepSeek Crypto Tokens on the Rise

Key Takeaways

• Over 80 fake DeepSeek-themed cryptocurrencies appeared within 24 hours, with one reaching a $48 million market capitalization.
• DeepSeek confirms it has not issued any official cryptocurrency and warns users to stay vigiliant against scams.

The release of DeepSeek, a revolutionary AI model to rival the likes of ChatGPT, hasn't just caused Bitcoin and the stock market to crash—dozens of fake DeepSeek meme coins and cryptocurrencies are now popping up everywhere, looking to scam and swindle unsuspecting crypto users.

According to official data from security firm Blockaid, over 80 scam tokens were created in the last 24 hours alone. This mirrors the spike in fake tokens that were released following the release of $TRUMP, President Donald Trumps' official cryptocurrency, and the debut of First Lady Melania Trump's token $MELANIA.

What is DeepSeek?

The cryptocurrency market has seen rapid fluctuations following the official launch of DeepSeek, an AI (Artificial Intelligence) startup. This AI model is said to rival OpenAI's ChatGPT, which is used by millions daily.

The buzz around DeepSeek gained momentum after ScaleAI CEO Alexandr Wang praised its performance, noting it surpassed leading U.S. AI models like OpenAI's ChatGPT. The soaring popularity of DeepSeek triggered a widespread sell-off in U.S. tech stocks and the cryptocurrency market, with Bitcoin dropping below $100K.

A major cause for this is the low costs. The Chinese AI company behind DeepSeek claims to have spent only $5.8 million to train its models—an amount that pales in comparison to its U.S. competitors, where OpenAI has raised a total of $17.9 billion to develop its models.

Are DeepSeek-Themed Coins Legit?

Fake crypto tokens, such as Solana-based DeepSeek and DeepSeek AI Agent, are rallying with the surge in interest for DeepSeek. These tokens can be found on platforms like DexScreener, with DeepSeek crypto reportedly surging to a $48 million market capitalization, before settling at a 9.9M market cap, with over 90,000 wallets still holding the token.

To prevent users from being scammed, DeepSeek wrote in an X post published on January 10, "DeepSeek has not issued any cryptocurrency. Currently, there is only one official account on the Twitter platform. We will not contact anyone through other accounts. Please stay vigilant and guard against potential scams."

They have released a further statement on January 28 that @deepseek_ai is their sole official account on X/Twitter.

The Bottom Line

You heard it here—cryptocurrencies under the name DeepSeek are not legitimately endorsed by the company behind the DeepSeek AI Agent.

Any investor looking to explore these projects should do so with caution and be wary of crypto-related scams, rug pulls, and phishing attacks that are prevalent in the world of decentralized finance and blockchain technology. Users are advised to always exercise caution and verify token legitimacy by researching the development team and the project itself before investing.

Disclaimer: This article is intended for entertainment and informational purposes only and should not be considered investment advice. Always conduct your own research and consult a financial advisor before making serious investment decisions with digital assets. The author and publication are not responsible for any losses incurred from reading this article.