The rapid success of Chinese AI company DeepSeek has triggered a wave of malicious “DeepSeek” crypto tokens in the past 24 hours, highlighting how quickly scammers exploit viral trends.
Surge in Fake Tokens
Data from security firm BlockAid revealed that at least 75 scam tokens impersonating DeepSeek were created as of January 27, marking a threefold increase from the previous day. This rise mirrors the surge in scam tokens following the launch of Donald Trump’s memecoin earlier this month.
DeepSeek’s latest AI app, released on January 20, quickly climbed to the top of the Apple app store. However, the app’s success also sparked fraudulent activity, with scammers leveraging DeepSeek’s name to create fake crypto tokens and decentralized applications (DApps) designed to deceive users.
Sophisticated Scams Target Users
Oz Tamir, a research analyst at BlockAid, reported that scammers have developed a DApp mimicking DeepSeek’s website. The fraudulent site includes a “Connect Wallet” button that could potentially drain users’ cryptocurrency wallets. Tamir noted the increasing sophistication of such scams, emphasizing the importance of user vigilance.
DeepSeek addressed the issue in a pinned X post on January 10, clarifying that it has not issued any cryptocurrency and urging users to avoid fake accounts. “DeepSeek has not issued any cryptocurrency. We will not contact anyone through other accounts. Please stay vigilant and guard against potential scams,” the company wrote.
Scammers See Short-Lived Success
Despite warnings, some fake DeepSeek tokens briefly gained traction. Two prominent scam tokens reached market caps of $48 million and $13 million, respectively, before losing momentum. Tamir highlighted that scammers are becoming increasingly efficient at capitalizing on trending events, creating fraudulent tokens almost immediately after viral moments.
The surge in fake tokens echoes patterns seen earlier this month, when the launch of Official Trump (TRUMP) and First Lady Melania’s memecoin (MELANIA) led to a sharp rise in scam tokens. Trump-branded tokens spiked from 3,300 to 6,800 daily launches on the debut day of the official memecoin.
DeepSeek’s AI Dominates Headlines
DeepSeek’s popularity on social media has skyrocketed, with many comparing its AI model to OpenAI’s ChatGPT. Notably, the company claimed its model was developed for under $6 million — a stark contrast to the billions American companies are investing in similar technology.
While DeepSeek’s success is impressive, the flood of scams associated with its rise underscores the growing need for caution as scammers become more sophisticated in exploiting viral narratives.
