DeepSeek AI vs. Scammers: The $48M Crypto Fraud You Need to Know About!

DeepSeek AI has become a global sensation following its launch on January 20, 2025. This artificial intelligence application was developed with a budget of less than $6 million, significantly lower than the billions of dollars spent by major companies such as OpenAI and Google.

DeepSeek’s popularity skyrocketed, making it the most downloaded app in the United States and dominating Google search trends.

However, amid the excitement surrounding DeepSeek AI’s launch, cybercriminals have taken advantage of this momentum to create various fake crypto tokens under its name. This phenomenon mirrors previous scams that emerged following the launch of the TRUMP token.

The Rise of Fake DeepSeek Tokens and Their Impact

According to Solana token tracker Birdeye, a Solana-based token named after DeepSeek briefly reached a market capitalization of $48 million, with trading volumes hitting $150 million.

However, DeepSeek AI has confirmed that they have never released an official crypto token and have warned users about potential scams.

Despite these warnings, more than 22,000 wallets still held the token even as its valuation dropped to $30 million. Additionally, another fake DeepSeek token peaked at a market capitalization of $13 million before falling to $8.6 million.

Reports from Cointelegraph and BlockAid reveal that in the past 24 hours alone, over 75 fake AI-related tokens using the DeepSeek name have emerged on blockchain networks, tripling the number from the previous day.

Some of these tokens even reached market caps in the tens of millions before collapsing due to increased investor awareness.

Read Also: Beware of DeepSeek AI Crypto Token Scam Circulating by Exploiting DeepSeek Trend

Fraudulent Tactics Used in DeepSeek Token Scams

Security researcher Oz Tamir from BlockAid revealed that scammers are becoming increasingly sophisticated. They are not only creating fake tokens but also launching decentralized applications (dApps) that mimic DeepSeek AI’s official website.

These fake applications feature a “Connect Wallet” button that, when accessed by users, can drain their crypto wallets within seconds.

DeepSeek itself has issued warnings on the X platform, stating that they have not released any cryptocurrency tokens. They emphasized that there is only one official DeepSeek AI account on social media and urged users to remain vigilant against potential scams.

A Similar Case: The Fake TRUMP Token Scam

This situation closely resembles the fraudulent schemes that followed the launch of the TRUMP meme coin. According to BlockAid, after the official TRUMP token was launched on January 18, the number of fake Trump-themed tokens surged from a daily average of 3,300 to 6,800.

Among these, 61 tokens falsely claimed to be official Trump or Melania coins, collectively amassing $4.8 million from 12,641 wallets.

The strategies used in both the TRUMP and DeepSeek scams follow a similar pattern—creating dApps and fake tokens that imitate legitimate branding to deceive unsuspecting investors. Given the rapid rise of such scams, users are strongly advised to verify the authenticity of any token before investing.

The Impact of DeepSeek’s Surge on Crypto and AI Markets

DeepSeek’s success has had ripple effects beyond AI, significantly impacting the broader crypto market. Data from CoinGecko indicates that the market capitalization of AI-based assets dropped by 10% to $10.4 billion following the emergence of fake DeepSeek tokens.

Meanwhile, DeepSeek’s rise has also prompted a response from the U.S. government. On January 23, former President Donald Trump signed an executive order aimed at ensuring U.S. leadership in AI technology. This move reflects concerns that Chinese AI innovations like DeepSeek could challenge America’s dominance in the sector.

Additionally, Trump announced a $500 billion allocation for the Stargate Project to support AI and crypto development in the U.S. However, DeepSeek’s success—despite its significantly lower development costs—raises questions about whether even substantial U.S. investments can prevent further disruption in this space.

DeepSeek’s achievements have even surpassed ChatGPT as the most popular app on the App Store and have dominated Google search trends in the U.S. over the past week.

Read Also: AI Crypto Tokens Plunge Amid Rising Popularity of DeepSeek AI

Conclusion: Staying Vigilant Against Crypto Scams

The cases of fake DeepSeek AI and TRUMP tokens serve as crucial reminders for investors to remain cautious against fraudulent schemes that capitalize on trending technologies. As innovation in AI and blockchain continues to accelerate, scammers are also evolving their methods to deceive investors.

To avoid falling victim to such scams, users should:

1. Verify the legitimacy of projects before investing.

2. Avoid connecting crypto wallets to unknown websites.

3. Rely on official sources of information from developers or trusted communities.

4. Use blockchain security tools to detect potential threats.

By maintaining a high level of vigilance, investors can protect their assets from the ever-evolving fraud tactics in the cryptocurrency industry.

FAQ about DeepSeek AI

1. What is DeepSeek AI?
DeepSeek AI is a revolutionary artificial intelligence application launched on January 20, 2025. Despite being developed with a budget of less than $6 million, it has rapidly become the most downloaded app in the U.S. and a trending topic on Google.

2. Has DeepSeek AI released any official cryptocurrency tokens?
No. DeepSeek AI has confirmed that they have not launched any cryptocurrency tokens. Any token claiming to be associated with DeepSeek AI is fraudulent.

3. What are fake DeepSeek tokens, and why are they a problem?
Fake DeepSeek tokens are scam cryptocurrencies created by cybercriminals to deceive investors. These tokens falsely claim to be linked to DeepSeek AI, leading to massive financial losses for unsuspecting buyers.

4. How much money have these fake tokens generated?
One Solana-based fake DeepSeek token briefly reached a market capitalization of $48 million, with trading volumes hitting $150 million. Another fake token peaked at $13 million before dropping to $8.6 million.

5. How many fake DeepSeek tokens have been created?
Reports indicate that over 75 fake AI-related tokens using the DeepSeek name have emerged on blockchain networks within 24 hours, tripling from the previous day.

6. Is this similar to the TRUMP token scam?
Yes. The scam mirrors the fraudulent activities that followed the launch of the TRUMP meme coin, where scammers created thousands of fake Trump-themed tokens to deceive investors.

7. What impact has this had on the crypto and AI markets?
The emergence of fake DeepSeek tokens has led to a 10% drop in the market capitalization of AI-based crypto assets, falling to $10.4 billion.