The cryptocurrency world had to witness another case of hype-driven speculation in the form of a fake DeepSeek token reaching a shocking market cap of $48 million. Although there were no official relations between the Chinese AI app DeepSeek and this Solana-based token, a multitude of trading volumes gave it a life before its value started tanking. There is the risk of speculative crypto investments and fraudulent tokens in the market.
The Rise of Fake DeepSeek Token
On January 27, the DeepSeek-themed token saw its market capitalisation soar past $48 million with a trading volume of $150 million. Records from the blockchain reveal that the token was created on January 4, even before DeepSeek’s app became a favourite by topping the US Apple App Store rankings.
The company has disassociated itself with the cryptocurrency despite efforts by its creators to associate it with the official website of DeepSeek’s X account. However, investors kept coming in, as more than 22,000 wallets are still holding the token.
Fake DeepSeek token hits $48M market cap amid Chinese AI app hype
— Soleva_Crypto (@soleva2025) January 30, 2025
"🚨 Fake DeepSeek token skyrockets to $48M market cap amid AI hype! 🤖🚀 Stay vigilant—official app denies crypto ties. #AI #CryptoScams"https://t.co/IPaYkosdEt
Market Crash and Second Fake Token.
The fake token valuation later cooled to $30 million, a testament to the volatility of speculative assets. Curiously, another fraudulent DeepSeek token similarly rode on the hype, achieving a $13 million market cap before it crashed to an $8.6 million market cap.
DeepSeek has alerted users about possible scams and suggested they be careful when investing in cryptocurrencies that say they are linked to the company.
The Broader Trend: Fake Tokens and X Account Hacks
The rise of fraudulent tokens is not restricted to DeepSeek. There were fake “Trump”-branded tokens that came out when the official memecoin (TRUMP) launched on January 18. A doubling of scam tokens was reported from 3,300 to 6,800 per day by the security firm Blockaid following the memecoin’s release.
Crypto detective ZachXBT also raised an alarm that scammers now are shifting focus from hacking accounts pertaining to governments and politicians and are now targeting X celebrity accounts for spreading fake tokens.
Conclusion.
The DeepSeek token scam is a warning to crypto investors. Increased hype continues to fuel speculation in the crypto market, so one needs to vet each token before investing. There is a growing number of fake tokens and scams, so it pays to be informed and do the proper research to avoid falling for all fraudulent schemes.
