The market cap of a Solana coin bearing the name of Chinese AI DeepSeek momentarily hit $48M, but the company denied ever releasing a cryptocurrency.
According to Solana token data aggregator Birdeye, a Solana-based token named after the Chinese AI software DeepSeek momentarily surpassed a $48 million market capitalization on January 27 thanks to $150 million in trading volume.
DeepSeek App Fake Token Release
According to blockchain records, the coin was established on January 4, weeks before DeepSeek’s app made news by dominating the US Apple App Store ratings.
Despite efforts by its founders to connect the token to DeepSeek’s official X account and website, its value rapidly dropped to $30 million at the time of writing. There are still more than 22,000 wallets that contain the token.
Profiting off the DeepSeek frenzy, a second fraudulent token momentarily rose to a market valuation of $13 million with a trading volume of $28.5 million. Since then, it has fallen to $8.6 million.
DeepSeek has cautioned users about possible fraud and denied affiliation with cryptocurrency tokens.
The popularity of the AI app has dominated cryptocurrency discussions, with many speculating that it helped push Bitcoin below $100,000 for the first time after US President Donald Trump assumed office. Financial markets have been shaken by the app’s rise, which has been seen as a challenge to US dominance in AI.
Meanwhile, on January 23, President Donald Trump signed an executive order calling for AI systems free from social agendas or ideological bias to maintain US leadership in the field.
X Hacks And Fake Crypto Tokens
Ironically, the January 20 launch of Trump’s Official Trump (TRUMP) memecoin and the subsequent introduction of a second token named for Melania Trump, the First Lady, increased counterfeit imitations.
Malicious “Trump”-branded tokens increased from a mean of 3,300 per day to 6,800 on the day of the memecoin’s introduction, according to security firm Blockaid.
Sixty-one such tokens have been discovered, which were introduced on January 20 and had tradeable liquidity, claiming to be the official TRUMP or MELANIA tokens. Twelve thousand six hundred forty-one wallets generated $4.8 in buy transactions for these tokens.
ZachXBT, a well-known crypto investigator, alerted people to a growing scam practice in which hackers target X accounts to push phony tokens. He claimed that scammers now concentrate on celebrity profiles rather than official or political ones.
