DeepSeek token surges to $48M amid AI app buzz

A Solana-based (CRYPTO:SOL) token associated with the Chinese AI app DeepSeek briefly reached a market capitalisation of $48 million on January 27.

This surge was driven by a trading volume of $150 million, according to data from the Solana token aggregator Birdeye.

The token was created on January 4, prior to DeepSeek’s app gaining significant attention by topping the US Apple App Store charts.

However, the token's value quickly diminished, falling to approximately $30 million shortly after its peak, despite attempts by its creators to connect it to DeepSeek’s official social media accounts and website.

Currently, over 22,000 wallets are reported to still hold this token.

In addition, another fraudulent token capitalising on the DeepSeek hype reached a market cap of $13 million but has since declined to $8.6 million.

DeepSeek has officially denied any association with these cryptocurrency tokens and has issued warnings regarding potential scams.

The rise of the AI app has stirred discussions in the crypto community, with some analysts suggesting that its success may have contributed to Bitcoin dropping below $100,000 for the first time since Donald Trump's presidency began.

This development is seen as a challenge to US leadership in AI and has had notable impacts on financial markets.

On January 23, President Trump signed an executive order aimed at maintaining US dominance in AI technology, emphasising the need for systems free from ideological bias.

In a related note, the launch of Trump’s memecoin on January 18 led to a surge in fraudulent tokens mimicking his brand.

Security firm Blockaid reported an increase in malicious "Trump"-branded tokens from an average of 3,300 daily to 6,800 on the day of the memecoin launch.

Crypto investigator ZachXBT highlighted a growing trend where scammers are targeting celebrity profiles on social media platforms to promote fraudulent tokens.