Fake DeepSeek tokens surge to $60M amid scams

A surge of fraudulent DeepSeek tokens has recently caught the attention of the cryptocurrency community, with these tokens falsely claiming ties to the popular Chinese AI protocol.

The fake tokens have amassed a combined market capitalisation exceeding $60 million, with one counterfeit token, Seek, briefly reaching a market cap of $48 million before collapsing.

This incident follows a troubling pattern of scams that have emerged in response to DeepSeek's rise in popularity.

Scammers are capitalising on the hype surrounding AI technologies and high-profile figures like Donald Trump, luring unsuspecting investors into their traps.

The official DeepSeek team has clarified that they have not issued any cryptocurrency, emphasising that only one official Twitter account exists for the project.

Despite these warnings, many investors continue to pour money into these fraudulent tokens, revealing a concerning lack of awareness about the risks involved.

The broader crypto space has seen an alarming rise in scams, with reports indicating that over $857 million has been stolen through fraudulent schemes tied to the TRUMP (CRYPTO:TRUMP) token alone.

Many new investors, eager for quick profits, fall victim to these scams due to inexperience and a lack of understanding of how to differentiate legitimate projects from frauds.

Industry experts have expressed concern over this growing issue, highlighting how the ease of creating fake meme coins complicates efforts to protect users.

While platforms like Uniswap (CRYPTO:UNI) and DexScreener are working to address these fraudulent tokens, the swift proliferation of new scams poses ongoing challenges for both regulators and investors.