Over the past day, more than 75 tokens claiming to be affiliated with DeepSeek have appeared on Ethereum and Solana, according to crypto security firm Blockaid. However, DeepSeek has not issued any tokens or partnered with any crypto projects, leaving eager traders vulnerable to fraud.

The hype surrounding DeepSeek, coupled with the rising popularity of AI-related projects, has created fertile ground for scammers. Many traders, driven by fear of missing out (FOMO), are jumping into these fraudulent tokens without verifying their legitimacy.

“It’s not hard to imagine how a trader who’s not following closely might be led to think that this is a real thing,” said Blockaid security researcher Oz Tamir. Adding to the confusion is the recent launch of President Donald Trump’s own meme coin. The unprecedented move by a sitting U.S. president has lent credibility to the idea that high-profile entities might issue their own tokens, making it easier for scammers to deceive unsuspecting investors.

Elaborate Schemes Target Unwary Traders

Some scam sites have gone to extraordinary lengths to appear legitimate. For example, one website replicates the DeepSeek app’s interface and prompts users to connect their crypto wallets. Once connected, these malicious sites can instantly drain all funds from a victim’s wallet.

The broader context of a resurgent crypto bull run and increased interest in meme coins has only amplified the risk of scams. As high-profile events drive more mainstream attention to the crypto space, inexperienced traders unfamiliar with the complexities of decentralized finance (DeFi) are becoming prime targets for fraudsters.

Fighting Back: Industry Solutions and Challenges

Platforms like Uniswap and DexScreener, popular hubs for researching and trading tokens, have partnered with Blockaid to combat these scams. They’ve implemented measures to filter out fraudulent tokens from search results. Despite these efforts, new scam tokens emerge constantly, making enforcement a continuous battle. For instance, while DexScreener has successfully removed DeepSeek scam tokens, some still appear on Uniswap and other platforms like Pump.fun, a Solana-based meme coin launchpad.

Even if these platforms refine their detection and removal processes, the issue raises a fundamental question about decentralization. In the crypto community, decentralization is often regarded as sacrosanct—a principle that should never be compromised, even at the risk of enabling bad actors. Striking a balance between preserving decentralization and protecting users from scams will likely remain a contentious debate.

Educating Users: The Key to Prevention

As scams become more sophisticated, educating traders on how to identify fraud will be critical. Platforms must not only work to remove scam tokens but also provide resources that empower users to spot red flags, such as promises of guaranteed returns or requests to connect wallets to unverified apps.

With DeepSeek’s success capturing global attention and crypto scams adapting to exploit new trends, the stakes for the industry have never been higher. As the crypto space continues to grow, its ability to navigate these challenges will determine how effectively it can protect its users while maintaining its core values of decentralization and openness.