Update (Jan. 27, 3:50 UTC): This article has been updated to correct the launch date of Trump’s memecoin from Jan. 20 to Jan. 18.
A Solana-based token named after Chinese AI app DeepSeek briefly surged past a $48 million market capitalization on Jan. 27, fueled by $150 million in trading volume, according to Solana token data aggregator Birdeye.
Blockchain records show the token was created on Jan. 4, weeks before DeepSeek’s app made headlines by topping the US Apple App Store rankings.
The token’s valuation had quickly cooled to $30 million by the time of writing, despite efforts by its creators to link it to DeepSeek’s official X account and website. Over 22,000 wallets are still holding the token.
A second fake token also capitalized on the DeepSeek hype, briefly reaching a $13 million market cap with $28.5 million in trading volume. It has fallen to $8.6 million since.
DeepSeek has denied involvement with any crypto tokens, warning users about potential scams.
Source: DeepSeek
The AI app’s rise has dominated crypto chatter, with analysts suggesting its success contributed to sending Bitcoin (BTC) below $100,000 for the first time since US President Donald Trump took office. The app’s ascent has been viewed as a challenge to US dominance in AI, shaking financial markets.
Related: The release of DeepSeek R1 shatters long-held assumptions about AI
Meanwhile, President Trump signed an executive order on Jan. 23 aimed at preserving US leadership in AI and calling for systems “free from ideological bias or engineered social agendas.”
Fake tokens and X hacks
Ironically, Trump’s own Official Trump (TRUMP) memecoin launch on Jan. 18 and the subsequent debut of another token named after First Lady Melania Trump triggered a surge in fraudulent copycats.
Security firm Blockaid reported a spike in malicious “Trump”-branded tokens, from an average of 3,300 daily to 6,800 on the memecoin’s launch day.
Of those, Cointelegraph found 61 tokens launched on Jan. 20 with tradeable liquidity that claimed to be official TRUMP or MELANIA tokens. They raked in $4.8 in purchase transactions from 12,641 wallets.
Meanwhile, crypto detective ZachXBT warned of a rising scam trend where hackers target X accounts to promote fraudulent tokens. He said scammers are shifting their focus from government and political accounts to celebrity profiles.
Magazine: 5 dangers to beware when apeing into Solana memecoins