The proliferation of DeepSeektechnology has led to a surge in fraudulent activities, particularly in the cryptocurrency market. In the past 24 hours, the number of scam tokens related to the popular Chinese AI tool, DeepSeek, has skyrocketed.
According to CoinTelegraph and data from the security firm BlockAid, at least 75 scam tokens associated with DeepSeek were created as of January 27th, marking a threefold increase from the previous day. This surge is reminiscent of the spike in fraudulent tokens that followed the launch of Trump Coin on January 18th.
Over 75 DeepSeek Tokens Launched in a Day
DeepSeek recently released a new version of its AI tool, which quickly gained popularity and topped Apple’s App Store. However, this success has been accompanied by a wave of scam tokens attempting to exploit the AI’s popularity.
Oz Temir, a research analyst at BlockAid, explained that scammers have created a decentralized application (DApp) that closely resembles DeepSeek’s official website, featuring a “Connect Wallet” button.
Clicking this button could result in users’ wallets being completely drained. Temir noted that the sophistication of this scam underscores the need for heightened vigilance among users. In a post on the social media platform X (formerly Twitter), DeepSeek stated:
DeepSeek has not issued any cryptocurrency. We currently only have one official account on the Twitter platform. We will not contact anyone through other accounts. Please be cautious and protect yourself against scams.
Despite these warnings, scammers remain active and have even found some success. Reports indicate that two fraudulent DeepSeek tokens gained significant traction during this period. One of these tokens reached a market value of $48 million before rapidly declining, while another reached $13 million.
Temir emphasized that scammers are increasingly exploiting crypto market trends with greater speed. BlockAid reported that the launch of the official Trump Coin (TRUMP) and the Melania meme coin (MELANIA) led to an increase in related scam tokens. For instance, the number of Trump-related tokens surged from 3,300 to 6,800 per day following the launch of TRUMP.
DeepSeek has sparked widespread debate on social media, largely due to the impressive capabilities of its AI model, which is seen as a potential competitor to OpenAI’s ChatGPT. The company claims that the development of its model cost less than $6 million, significantly less than the billions of dollars spent by American companies on their AI models.
Conclusion
The rapid rise in scam tokens linked to DeepSeek highlights the growing threat of fraud in the cryptocurrency space. As AI technologies continue to evolve and gain popularity, scammers are quick to capitalize on these trends, putting unsuspecting users at risk. The situation underscores the importance of vigilance and the need for robust security measures to protect users from falling victim to such scams. As the crypto community navigates these challenges, staying informed and cautious remains crucial.
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