Fake DeepSeek Token Reaches $48M Market Cap, 22,000 Wallets Affected as Company Denies Involvement

A Solana-based token named after the Chinese AI app DeepSeek briefly reached a market cap of $48 million, driven by $150 million in trading volume, as per data from Solana token tracker Birdeye. Blockchain records indicate the token was created on Jan. 4, preceding DeepSeek’s rise to the top of the U.S. Apple App Store rankings. Despite its creators' efforts to associate it with DeepSeek’s official X account and website, the company has denied any involvement with the token and warned users about potential scams. By the time of reporting, the token’s valuation dropped to $30 million, with over 22,000 wallets still holding it.

Another fake token leveraging the DeepSeek name also gained traction, peaking at a $13 million market cap alongside $28.5 million in trading volume before declining to $8.6 million. These fraudulent tokens have added to concerns over scams exploiting popular trends in cryptocurrency markets.

Similar malicious activity spiked following the Jan. 18 launch of Donald Trump’s Official Trump (TRUMP) meme coin. Security firm Blockaid reported an increase in “Trump”-branded tokens from a daily average of 3,300 to 6,800. Among these, 61 tokens were identified as claiming to be official TRUMP or MELANIA coins, collectively amassing $4.8 million from 12,641 wallets.

Scammers have also begun targeting X accounts to promote fake tokens. Crypto investigator ZachXBT highlighted a shift in scam tactics, with hackers now focusing on celebrity profiles instead of government or political accounts. This method takes advantage of high-profile names to gain credibility and deceive users.

The hype surrounding DeepSeek has also drawn broader attention to the competitive landscape of artificial intelligence. Some analysts have suggested the app’s success contributed to Bitcoin dropping below $100,000 for the first time since Donald Trump took office. Its rapid rise is seen as a potential challenge to U.S. dominance in AI innovation, prompting strategic responses.

On Jan. 23, former President Trump signed an executive order aimed at ensuring U.S. leadership in artificial intelligence. The directive emphasized the importance of developing systems free from ideological biases or engineered social agendas, reflecting concerns about AI’s broader impact on technology and markets.

The incidents involving DeepSeek and Trump-branded tokens highlight the risks of fraudulent activity in the cryptocurrency space. Users are advised to exercise caution, verify token legitimacy, and stay informed to avoid falling victim to scams. This underscores the industry’s ongoing challenges as it navigates its growth and widespread adoption.