Fake DeepSeek Token Reaches $48M Market Cap Before Being Declared a Scam
A fraudulent DeepSeek Token, falsely claiming to be linked to the popular DeepSeek AI App, has been exposed as a scam after reaching a $48 million market cap and recording $150 million in trading volume. Despite its rapid growth, the official DeepSeek App has denied any affiliation with the token, warning investors to avoid falling victim to the fraud.
DeepSeek App Denies Any Connection to the Token
The DeepSeek App, a Chinese AI-based platform that recently surged in popularity on the U.S. Apple App Store, issued a statement confirming that it has no connection with any cryptocurrency project. The app’s rapid rise in downloads led scammers to exploit its name and reputation to promote a fake token on the Solana blockchain.
Blockchain records reveal that the DeepSeek Token was created on January 4, just days before the AI app gained top rankings in the U.S., suggesting that scammers were targeting investors looking to capitalize on the app’s success.
Cybercriminals Impersonate DeepSeek’s Official Accounts
In addition to launching the fake token, scammers also created fraudulent websites and impersonated DeepSeek’s official accounts on social media to convince users that the token was legitimate. Security firm Cyble has warned that these phishing attempts aim to trick investors into connecting their wallets, leading to potential fund losses.
Surge in Fake Tokens Flooding the Market
The DeepSeek Token is just one of many fraudulent tokens flooding the crypto market. Another fake token, similar in nature, surfaced shortly after, reaching a $13 million market cap with a $28.5 million trade volume.
According to analysts, the increasing number of scam tokens has even impacted the broader cryptocurrency market, contributing to Bitcoin’s price dropping below $100,000.
Political Tokens Fuel the Scam Trend
The rise in fraudulent tokens has been further accelerated by the launch of politically themed cryptocurrencies, including:
• Donald Trump’s Official Trump ($TRUMP) Memecoin, launched on January 18.
• A token named after First Lady Melania Trump.
According to security firm Blockaid, an average of 3,300 Trump-themed tokens were being created daily. However, when the TRUMP Memecoin launched on January 18, that number spiked to 6,800 tokens per day, many of which were fraudulent.
Scammers Now Targeting Celebrities and Political Figures
Previously, fraudsters focused on impersonating government and political accounts, but their tactics have now shifted to celebrity and tech-related projects. The fraudulent DeepSeek Token is a prime example of how scammers capitalize on hype and public trust to deceive investors.
How to Protect Yourself from Crypto Scams
To avoid falling victim to fraudulent tokens, investors are urged to:
✔ Verify official announcements from trusted sources.
✔ Check blockchain records and smart contract details before investing.
✔ Be cautious of sudden promotions on social media.
✔ Avoid FOMO (Fear of Missing Out) and research before trading.
✔ Use secure and reputable crypto exchanges.
With scammers finding new ways to exploit hype and market trends, due diligence and caution are more important than ever when investing in cryptocurrencies.