DeepSeek distances itself from any crypto tokens amid scam warnings
DeepSeek's official statement clarified that it has no involvement in the creation of any crypto assets
DeepSeek, the rapidly rising Chinese AI app, has distanced itself from the recent surge in Solana-based tokens falsely associated with its name.
On January 27, 2025, a token named after DeepSeek briefly hit a market capitalization of $48 million, driven by a staggering $150 million in trading volume. The token was created on January 4, weeks before the app gained significant attention by topping the US Apple App Store rankings.
However, DeepSeek has strongly denied any connection to these tokens, warning users of potential scams.
Fake tokens capitalize on DeepSeek’s popularity
Two fake tokens capitalized on the hype surrounding DeepSeek's success, with one briefly reaching a market cap of $48 million, while another soared to $13 million. Despite their fleeting rise, both tokens have since seen their valuations decrease, with the second token now hovering at just $8.6 million. Blockchain records show that these tokens were artificially linked to DeepSeek's brand, leading to confusion among investors.
DeepSeek's official statement clarified that it has no involvement in the creation or promotion of any crypto assets and urged the public to be cautious of potential fraudulent schemes. The company emphasized that it would take steps to protect its users from scams using its name.
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A broader issue of crypto scams
The surge in fake tokens linked to DeepSeek is part of a larger trend of cryptocurrency scams, particularly in the wake of high-profile tech and AI developments. Experts have warned that scammers are increasingly targeting celebrity and popular tech app brands to lure in unsuspecting investors. DeepSeek’s success has sparked a wave of interest in the AI and crypto sectors, but it also highlights the growing risks of fraud in the crypto space.
As the popularity of DeepSeek and similar technologies continues to rise, it’s important for users to be vigilant about potential scams. DeepSeek's swift action to distance itself from these fraudulent tokens may set a precedent for other tech companies facing similar issues.
Read also: DeepSeek AI Assistant overtakes ChatGPT on App Store.
