Fake DeepSeek Crypto Coin Disrupts the Market

While the emergence of some technological advancements, like ChatGPT, traditionally leads to an uptick in the market, the sudden appearance of major competitors can have the opposite effect. On January 20, 2025, for example, DeepSeek released its first free chatbot app in direct competition with the American version — ChatGPT.

Immediately, Wall Street investors began to panic, and it didn’t take long for the market downturn to impact the digital realm.

Bitcoin (BTC) temporarily dropped below $100,000 upon the widespread announcement and use of DeepSeek’s chatbot, but that was only the beginning of the impact of the new tech on economic markets. Unfortunately, a wave of unauthorized cryptocurrency tokens using the name DeepSeek suddenly appeared on multiple blockchain networks simultaneously.

While the real AI company warned about the fraudulent tokens, it wasn’t enough to stop interested investors from falling for the scam. One fake token somehow reached a value of a whopping $48 million. Investors were quickly flocking to the fake DeepSeek coin thinking that the crypto was owned by the Chinese company or tied to the app.

The original imposter coin was launched on Solana’s blockchain in January. Over 22,000 digital wallet holders were attracted to the new offering, and they invested over $150 million into the token. Seeing the success of this first imposter coin, several other dupes were also launched. Unfortunately, these dupes aren’t limited to the DeepSeek or AI realm. Many other scammers are taking advantage of the release of legitimate crypto initiatives, like the one issued by Donald Trump, to put out fraudulent dupes, mimic coins, or hype coins that are designed specifically to create a fast profit.

DeepSeek has released a statement saying that they do not have any official cryptocurrency token. Investors should continue to be vigilant about the investments they make.

By the end of the month, the digital currency sector started to stabilize, with Bitcoin rebounding by 1.3%. Many finance platforms have responded to the event by implementing protective measures for investors. Some platforms have hired security firms to seek these fraudulent coins and dismantle them before they can cause bigger problems.

Overall, most stable cryptocurrencies have continued to become more valuable over time. If you were to have invested $1,000 in Bitcoin in 2009, then it would be worth over $103 billion in 2024.

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