In the wake of the Chinese AI startup DeepSeek — which recently prompted a major crypto market downturn — more than 75 phony tokens bearing the name DeepSeek have appeared across Ethereum and Solana in the last 24 hours, according to Blockaid. Despite the excitement surrounding the project, DeepSeek has not announced any official token. Scammers, however, are capitalizing on the AI-meme surge to lure unsuspecting traders seeking profit from the buzz.
“Many users who aren’t following the details could easily believe such a token is legitimate,” commented Oz Tamir, an analyst at Blockaid.
Further confusion has been added by meme coins linked to high-profile figures such as Donald Trump. The recent TRUMP token launch on Solana boosted user confidence in cryptocurrencies associated with notable brands or well-known individuals.
Rumors of an Official DeepSeek Token
Despite warnings about fraudulent ventures, rumors persist that DeepSeek itself has launched a crypto asset. Users have identified an independent DeepSeek-named token on Ethereum, which surged 1600% before undergoing a correction. Yet so far, there’s no confirmation that its developers have ties to the original AI project.
Additionally, DeepSeek appears to be connected to Venice.ai, a privacy-focused, decentralized AI platform. Venice.ai uses the VVV token, which grants holders access to the DeepSeek R-1 API — one of the startup’s key models.
About the VVV Token
- Launch: January 27 on Ethereum Layer-2 Base
- Functionality: Provides AI API access, allowing users to generate text, images, and code
- Privacy: Venice.ai developers claim user data isn’t shared with third parties, including Chinese entities
- Distribution: 25% of tokens allocated to early Venice users, 35% retained by the project, and 10% reserved for an incentive fund
Amid the uptick in meme coins and AI tokens, experts advise caution with unverified offerings and a thorough review of official company statements prior to purchase. While the AI token segment is surging, the combination of high volatility and potential scams makes the market highly unpredictable and risky.
Also Read:
- Vine Co-founder’s Meme Coin Becomes Solana Hit, Surges 2000%
- Trump’s $500B “Stargate”Initiative Announcement Sparks Rise in AI Tokens
- AI Tokens Overtake Meme Coins: Trends, Forecasts, and Risks
This post is for informational purposes only and is not an ad or investment advice. Please do your own research making any decisions.