In a dramatic overnight surge, cryptocurrencies themed around the emerging AI powerhouse DeepSeek have seen explosive growth, with one token skyrocketing nearly 600% in just 24 hours.
The Solana-based token DeepSeek AI Agent reached a market capitalization of $11.98 million, with trading volume jumping 698% to $31.25 million, showing intense trader interest. Meanwhile, another Solana token called DeepSeek AI gained over 50%, reaching a market value of $500,000.
These meteoric rises come as China-based startup DeepSeek gains attention for its cost-effective AI model that's challenging U.S. dominance in artificial intelligence. However, investors should note several red flags before jumping on the trend.
Most notably, these cryptocurrencies have no official connection to DeepSeek, and the company has not announced any plans for its own digital currency. The tokens appear to be riding solely on the namesake and hype surrounding the AI firm's recent achievements.
Adding to the risk factors, these tokens currently trade only on decentralized exchanges with very limited liquidity, making them vulnerable to extreme price swings. Major cryptocurrency exchanges have not listed these assets.
CoinMarketCap has also issued warnings that the circulation supply and market valuations for these tokens remain unverified by independent sources. This lack of verification creates additional uncertainty around their true value and trading dynamics.
While the explosive gains may look tempting, the combination of unverified metrics, limited trading venues, and no official backing from DeepSeek suggests investors should approach these tokens with extreme caution despite their recent performance.
The emergence of these AI-themed tokens highlights both the speculative nature of certain crypto assets and the growing intersection between artificial intelligence and digital currencies in today's market landscape.