A fake cryptocurrency token claiming affiliation with the popular Chinese AI app DeepSeek briefly surged to a $48 million market cap, capitalizing on the recent hype surrounding the app’s release.
According to blockchain data, the coin was established on January 4, weeks before DeepSeek’s app made news when it topped the US Apple App Store rankings.
DeepSeek, an AI-powered facial recognition app, has gained significant traction in China, leading to a surge in interest in AI-related technologies. This heightened interest appears to have inadvertently fueled the creation and rapid rise of the fake DeepSeek token.
The token, which was not officially endorsed or launched by DeepSeek, experienced a meteoric rise in value before ultimately crashing. This incident highlights the risks associated with investing in cryptocurrencies, particularly those linked to trending events or companies without proper due diligence.
Scammers often exploit popular trends to create and promote fraudulent tokens, enticing unsuspecting investors with promises of quick profits. In this case, the association with the trending DeepSeek app likely attracted a significant number of investors, contributing to the token’s initial surge.
This incident serves as a stark reminder of the importance of conducting thorough research and exercising caution before investing in cryptocurrencies. Investors should be wary of tokens that claim affiliation with companies or events without official confirmation, as these could be scams designed to capitalize on hype and public interest.
