DeepSeek's AI models wiped $589 billion from Nvidia's market cap this week, marking one of the largest single-day value destructions in tech history. Meanwhile, a wave of scam tokens has flooded Solana and Ethereum, falsely claiming ties to the Chinese AI startup. The tokens have no actual connection to DeepSeek.
The Nvidia selloff
Nvidia's market cap dropped by $589 billion after DeepSeek released its latest AI models. The models reportedly offer competitive performance at a fraction of the cost, raising concerns about Nvidia's pricing power and demand for its high-end chips. The selloff erased roughly 15% of Nvidia's value in a single session.
Scam tokens exploit the hype
Opportunistic scammers didn't waste time. Tokens with names like 'DeepSeekAI' and 'DeepSeek Token' appeared on Solana and Ethereum, some with liquidity pools and social media buzz. But none are affiliated with DeepSeek. The startup has not issued any token or endorsed any crypto project.
What exchanges are doing
Several decentralized exchanges have flagged the tokens as high risk. Some centralized platforms are monitoring the situation. The tokens have no utility and are likely pump-and-dump schemes. Investors are advised to verify any claims before trading.
The SEC has not commented on the scam tokens. DeepSeek has not issued a statement. For now, the tokens remain live on-chain, and the Nvidia selloff continues to reverberate across markets.
