Unauthorized DeepSeek tokens hit a $48M market cap before crashing.
Bitcoin drops below $100K as DeepSeek's AI disruption spooks tech stocks and crypto markets.
The Chinese startup's cost-effective AI models threaten Silicon Valley, causing market-wide tech and crypto selloffs.
Why is crypto going down? DeepSeek sparks market's confusion
A wave of
unauthorized cryptocurrency tokens exploiting the name of Chinese AI sensation
DeepSeek has emerged on multiple blockchain networks, with one fraudulent token
briefly reaching a market capitalization of $48 million despite explicit
warnings from the company.
This is
happening as
DeepSeek has triggered significant panic on Wall Street, dragging
cryptocurrencies down as well. Bitcoin (BTC) briefly dropped below $100,000,
while XRP tested monthly lows. Let's take a closer look at why crypto is going
down.
Fake DeepSeek Token Hits
$48 Million Market Cap as AI Hype Fuels Surge
The primary
impostor token, launched on the Solana blockchain earlier this month, generated
approximately $150 million in trading volume and attracted over 22,000 wallet
holders, according to data from Solana token tracker Birdeye. DeepSeek has
explicitly denied any connection to cryptocurrency projects and warned users
about potential scams.
Fake Token experienced a sharp surge followed by an equally rapid decline. Source: Birdeye
The scam's
timing coincided with DeepSeek's
meteoric rise to prominence in the artificial intelligence sector, where
its cost-effective AI model has challenged industry giants. The fraudulent
token's creators attempted to legitimize their offering by creating false
associations with DeepSeek's official social media presence and website.
A second
unauthorized DeepSeek
token also gained significant traction, reaching a $13 million market cap with
$28.5 million in trading volume before declining to $8.6 million. These
incidents are part of a broader trend of scammers exploiting popular technology
trends in cryptocurrency markets.
Paul Howard, Wincent
"DeepSeek will accelerate AI development both in the US and
overseas, denying hegemony over AI," commented Paul Howard, Director at Wincent. "There is little impact for trading, anything an LLM could offer has already been available for a while, and a lower cost base will do little to influence the way institutional players interact with the crypto market, which is at the amplified risk end of the stock market."
Why Is Crypto Going Down?
Bitcoin's
price recently dipped below $100,000, reaching an 11-day low, amid a broader
selloff in technology stocks. This downturn was triggered by DeepSeek's
announcement of more affordable AI models, which intensified competition in the
tech sector and led to significant declines in tech equities.
At the
beginning of this week, Bitcoin dropped to just under $98,000, testing the
50-day exponential moving average. All major altcoins followed suit: Ethereum
(ETH) tested the psychological support level of $3,000, while XRP formed a long
lower wick, dipping to $3.05.
The Nasdaq
100, heavily weighted with technology companies, experienced notable losses,
reflecting investor concerns over DeepSeek's potential impact on established
tech firms.
The
cryptocurrency market, particularly Bitcoin, has shown a strong correlation
with technology stocks, especially during periods of market stress. As tech
stocks declined, Bitcoin's value also dropped, highlighting its sensitivity to
shifts in investor sentiment within the tech industry.
However, by
Wednesday, January 29, 2025, the market appears to be stabilizing. Bitcoin is
currently rebounding by 1.3%, testing the $102,630 level. Moreover, analysts are
still being highly positive, some of them even predicting, that
Bitcoin price this year may reach $200K mark.
Major
decentralized finance platforms have implemented protective measures, with
companies like Uniswap and DexScreener partnering with security firms to filter
out fraudulent tokens. However, the decentralized nature of blockchain
technology makes it challenging to completely prevent such scams.
As of press
time, the primary fake DeepSeek token's volume had decreased to $2 million,
though thousands of wallets still hold the unauthorized asset. The incident
serves as a stark reminder of the risks in cryptocurrency markets, particularly
during periods of intense speculation around emerging technologies.
This
cost-efficiency, combined with an open-source approach, has raised concerns
among U.S. tech leaders about China’s growing influence in AI. DeepSeek’s rapid
rise, underscored by its AI assistant surpassing ChatGPT in downloads, signals
a shift in the global AI race. Furthermore, the Chinese government’s support
for DeepSeek highlights AI as a strategic industry, intensifying geopolitical
tensions and fueling fears in Silicon Valley about maintaining dominance in AI
innovation.
"Similar to the headlines we saw around quantum computing several months ago,
both software and hardware will continue to advance, reduce cost, and increase
access," Howard added. "Moreover, in the medium term for crypto, pay attention to macro and tech
numbers due out this week as to influencing the majors, whilst we see a continued
pullback in the pricing of AI tokens the last 7 days not necessarily correlated
with DeepSeek news itself."
Why is Crypto Going Down? FAQ
Why Is the Crypto Market
Falling?
The
cryptocurrency market is currently experiencing a downturn due to a combination
of factors, including broader sell-offs in technology stocks and the impact of
fraudulent token schemes. The recent surge and collapse of unauthorized
DeepSeek-branded tokens have contributed to heightened volatility, shaking
investor confidence.
Additionally,
DeepSeek’s disruption of the AI sector has triggered concerns on Wall Street,
leading to declines in tech stocks, which have historically correlated with
Bitcoin and other cryptocurrencies. As a result, Bitcoin briefly fell below
$100,000, while major altcoins like Ethereum and XRP also tested key support
levels.
Will Crypto Rise Again in
2025?
Despite the
recent downturn, analysts remain optimistic about the long-term outlook for
cryptocurrency in 2025. Bitcoin has already shown signs of recovery, rebounding
to over $102,000. Some analysts predict that Bitcoin could reach $200,000 by
the end of the year, supported by institutional adoption, potential regulatory
clarity, and continued demand for decentralized assets. However, market
volatility remains a key factor, and investors should remain cautious about
speculative trends and potential scams.
A wave of
unauthorized cryptocurrency tokens exploiting the name of Chinese AI sensation
DeepSeek has emerged on multiple blockchain networks, with one fraudulent token
briefly reaching a market capitalization of $48 million despite explicit
warnings from the company.
This is
happening as
DeepSeek has triggered significant panic on Wall Street, dragging
cryptocurrencies down as well. Bitcoin (BTC) briefly dropped below $100,000,
while XRP tested monthly lows. Let's take a closer look at why crypto is going
down.
Fake DeepSeek Token Hits
$48 Million Market Cap as AI Hype Fuels Surge
The primary
impostor token, launched on the Solana blockchain earlier this month, generated
approximately $150 million in trading volume and attracted over 22,000 wallet
holders, according to data from Solana token tracker Birdeye. DeepSeek has
explicitly denied any connection to cryptocurrency projects and warned users
about potential scams.
Fake Token experienced a sharp surge followed by an equally rapid decline. Source: Birdeye
The scam's
timing coincided with DeepSeek's
meteoric rise to prominence in the artificial intelligence sector, where
its cost-effective AI model has challenged industry giants. The fraudulent
token's creators attempted to legitimize their offering by creating false
associations with DeepSeek's official social media presence and website.
A second
unauthorized DeepSeek
token also gained significant traction, reaching a $13 million market cap with
$28.5 million in trading volume before declining to $8.6 million. These
incidents are part of a broader trend of scammers exploiting popular technology
trends in cryptocurrency markets.
Paul Howard, Wincent
"DeepSeek will accelerate AI development both in the US and
overseas, denying hegemony over AI," commented Paul Howard, Director at Wincent. "There is little impact for trading, anything an LLM could offer has already been available for a while, and a lower cost base will do little to influence the way institutional players interact with the crypto market, which is at the amplified risk end of the stock market."
Why Is Crypto Going Down?
Bitcoin's
price recently dipped below $100,000, reaching an 11-day low, amid a broader
selloff in technology stocks. This downturn was triggered by DeepSeek's
announcement of more affordable AI models, which intensified competition in the
tech sector and led to significant declines in tech equities.
At the
beginning of this week, Bitcoin dropped to just under $98,000, testing the
50-day exponential moving average. All major altcoins followed suit: Ethereum
(ETH) tested the psychological support level of $3,000, while XRP formed a long
lower wick, dipping to $3.05.
The Nasdaq
100, heavily weighted with technology companies, experienced notable losses,
reflecting investor concerns over DeepSeek's potential impact on established
tech firms.
The
cryptocurrency market, particularly Bitcoin, has shown a strong correlation
with technology stocks, especially during periods of market stress. As tech
stocks declined, Bitcoin's value also dropped, highlighting its sensitivity to
shifts in investor sentiment within the tech industry.
However, by
Wednesday, January 29, 2025, the market appears to be stabilizing. Bitcoin is
currently rebounding by 1.3%, testing the $102,630 level. Moreover, analysts are
still being highly positive, some of them even predicting, that
Bitcoin price this year may reach $200K mark.
Major
decentralized finance platforms have implemented protective measures, with
companies like Uniswap and DexScreener partnering with security firms to filter
out fraudulent tokens. However, the decentralized nature of blockchain
technology makes it challenging to completely prevent such scams.
As of press
time, the primary fake DeepSeek token's volume had decreased to $2 million,
though thousands of wallets still hold the unauthorized asset. The incident
serves as a stark reminder of the risks in cryptocurrency markets, particularly
during periods of intense speculation around emerging technologies.
This
cost-efficiency, combined with an open-source approach, has raised concerns
among U.S. tech leaders about China’s growing influence in AI. DeepSeek’s rapid
rise, underscored by its AI assistant surpassing ChatGPT in downloads, signals
a shift in the global AI race. Furthermore, the Chinese government’s support
for DeepSeek highlights AI as a strategic industry, intensifying geopolitical
tensions and fueling fears in Silicon Valley about maintaining dominance in AI
innovation.
"Similar to the headlines we saw around quantum computing several months ago,
both software and hardware will continue to advance, reduce cost, and increase
access," Howard added. "Moreover, in the medium term for crypto, pay attention to macro and tech
numbers due out this week as to influencing the majors, whilst we see a continued
pullback in the pricing of AI tokens the last 7 days not necessarily correlated
with DeepSeek news itself."
Why is Crypto Going Down? FAQ
Why Is the Crypto Market
Falling?
The
cryptocurrency market is currently experiencing a downturn due to a combination
of factors, including broader sell-offs in technology stocks and the impact of
fraudulent token schemes. The recent surge and collapse of unauthorized
DeepSeek-branded tokens have contributed to heightened volatility, shaking
investor confidence.
Additionally,
DeepSeek’s disruption of the AI sector has triggered concerns on Wall Street,
leading to declines in tech stocks, which have historically correlated with
Bitcoin and other cryptocurrencies. As a result, Bitcoin briefly fell below
$100,000, while major altcoins like Ethereum and XRP also tested key support
levels.
Will Crypto Rise Again in
2025?
Despite the
recent downturn, analysts remain optimistic about the long-term outlook for
cryptocurrency in 2025. Bitcoin has already shown signs of recovery, rebounding
to over $102,000. Some analysts predict that Bitcoin could reach $200,000 by
the end of the year, supported by institutional adoption, potential regulatory
clarity, and continued demand for decentralized assets. However, market
volatility remains a key factor, and investors should remain cautious about
speculative trends and potential scams.
Damian's adventure with financial markets began at the Cracow University of Economics, where he obtained his MA in finance and accounting. Starting from the retail trader perspective, he collaborated with brokerage houses and financial portals in Poland as an independent editor and content manager. His adventure with Finance Magnates began in 2016, where he is working as a business intelligence analyst.
KuCoin Rolls Out MiCA-Regulated Crypto Platform Across 29 EU Markets
Hannah Hill on Innovation, Branding & Award-Winning Technology | Executive Interview | AXI
Hannah Hill on Innovation, Branding & Award-Winning Technology | Executive Interview | AXI
Recorded live at FMLS:25, this executive interview features Hannah Hill, Head of Brand and Sponsorship at AXI, in conversation with Finance Magnates, following AXI’s win for Most Innovative Broker of the Year 2025.
In this wide-ranging discussion, Hannah shares insights on:
🔹What winning the Finance Magnates award means for AXI’s credibility and innovation
🔹How the launch of AXI Select, the capital allocation program, is redefining industry standards
🔹The development and rollout of the AXI trading app across multiple markets
🔹Driving brand evolution alongside technological advancements
🔹Encouraging and recognizing teams behind the scenes
🔹The role of marketing, content, and social media in building product awareness
Hannah explains why standout products, strategic branding, and a focus on innovation are key to growing visibility and staying ahead in a competitive brokerage landscape.
🏆 Award Highlight: Most Innovative Broker of the Year 2025
👉 Subscribe to Finance Magnates for more executive interviews, industry insights, and exclusive coverage from the world’s leading financial events.
#FMLS25 #FinanceMagnates #MostInnovativeBroker #TradingTechnology #FinTech #Brokerage #ExecutiveInterview #AXI
Recorded live at FMLS:25, this executive interview features Hannah Hill, Head of Brand and Sponsorship at AXI, in conversation with Finance Magnates, following AXI’s win for Most Innovative Broker of the Year 2025.
In this wide-ranging discussion, Hannah shares insights on:
🔹What winning the Finance Magnates award means for AXI’s credibility and innovation
🔹How the launch of AXI Select, the capital allocation program, is redefining industry standards
🔹The development and rollout of the AXI trading app across multiple markets
🔹Driving brand evolution alongside technological advancements
🔹Encouraging and recognizing teams behind the scenes
🔹The role of marketing, content, and social media in building product awareness
Hannah explains why standout products, strategic branding, and a focus on innovation are key to growing visibility and staying ahead in a competitive brokerage landscape.
🏆 Award Highlight: Most Innovative Broker of the Year 2025
👉 Subscribe to Finance Magnates for more executive interviews, industry insights, and exclusive coverage from the world’s leading financial events.
#FMLS25 #FinanceMagnates #MostInnovativeBroker #TradingTechnology #FinTech #Brokerage #ExecutiveInterview #AXI
Executive Interview | Dor Eligula | Co-Founder & Chief Business Officer, BridgeWise | FMLS:25
Executive Interview | Dor Eligula | Co-Founder & Chief Business Officer, BridgeWise | FMLS:25
In this session, Jonathan Fine form Ultimate Group speaks with Dor Eligula from Bridgewise, a fast-growing AI-powered research and analytics firm supporting brokers and exchanges worldwide.
We start with Dor’s reaction to the Summit and then move to broker growth and the quick wins brokers often overlook. Dor shares where he sees “blue ocean” growth across Asian markets and how local client behaviour shapes demand.
We also discuss the rollout of AI across investment research. Dor gives real examples of how automation and human judgment meet at Bridgewise — including moments when analysts corrected AI output, and times when AI prevented an error.
We close with a practical question: how retail investors can actually use AI without falling into common traps.
In this session, Jonathan Fine form Ultimate Group speaks with Dor Eligula from Bridgewise, a fast-growing AI-powered research and analytics firm supporting brokers and exchanges worldwide.
We start with Dor’s reaction to the Summit and then move to broker growth and the quick wins brokers often overlook. Dor shares where he sees “blue ocean” growth across Asian markets and how local client behaviour shapes demand.
We also discuss the rollout of AI across investment research. Dor gives real examples of how automation and human judgment meet at Bridgewise — including moments when analysts corrected AI output, and times when AI prevented an error.
We close with a practical question: how retail investors can actually use AI without falling into common traps.
Brendan Callan joined us fresh off the Summit’s most anticipated debate: “Is Prop Trading Good for the Industry?” Brendan argued against the motion — and the audience voted him the winner.
In this interview, Brendan explains the reasoning behind his position. He walks through the message he believes many firms avoid: that the current prop trading model is too dependent on fees, too loose on risk, and too confusing for retail audiences.
We discuss why he thinks the model grew fast, why it may run into walls, and what he believes is needed for a cleaner, more responsible version of prop trading.
This is Brendan at his frankest — sharp, grounded, and very clear about what changes are overdue.
Brendan Callan joined us fresh off the Summit’s most anticipated debate: “Is Prop Trading Good for the Industry?” Brendan argued against the motion — and the audience voted him the winner.
In this interview, Brendan explains the reasoning behind his position. He walks through the message he believes many firms avoid: that the current prop trading model is too dependent on fees, too loose on risk, and too confusing for retail audiences.
We discuss why he thinks the model grew fast, why it may run into walls, and what he believes is needed for a cleaner, more responsible version of prop trading.
This is Brendan at his frankest — sharp, grounded, and very clear about what changes are overdue.
Elina Pedersen on Growth, Stability & Ultra-Low Latency | Executive Interview | Your Bourse
Elina Pedersen on Growth, Stability & Ultra-Low Latency | Executive Interview | Your Bourse
Recorded live at FMLS:25 London, this executive interview features Elina Pedersen, in conversation with Finance Magnates, following her company’s win for Best Connectivity 2025.
🔹In this wide-ranging discussion, Elina shares insights on:
🔹What winning a Finance Magnates award means for credibility and reputation
🔹How broker demand for stability and reliability is driving rapid growth
🔹The launch of a new trade server enabling flexible front-end integrations
🔹Why ultra-low latency must be proven with data, not buzzwords
🔹Common mistakes brokers make when scaling globally
🔹Educating the industry through a newly launched Dealers Academy
🔹Where AI fits into trading infrastructure and where it doesn’t
Elina explains why resilient back-end infrastructure, deep client partnerships, and disciplined focus are critical for brokers looking to scale sustainably in today’s competitive market.
🏆 Award Highlight: Best Connectivity 2025
👉 Subscribe to Finance Magnates for more executive interviews, industry insights, and exclusive coverage from the world’s leading financial events.
#FMLS25 #FinanceMagnates #BestConnectivity #TradingTechnology #UltraLowLatency #FinTech #Brokerage #ExecutiveInterview
Recorded live at FMLS:25 London, this executive interview features Elina Pedersen, in conversation with Finance Magnates, following her company’s win for Best Connectivity 2025.
🔹In this wide-ranging discussion, Elina shares insights on:
🔹What winning a Finance Magnates award means for credibility and reputation
🔹How broker demand for stability and reliability is driving rapid growth
🔹The launch of a new trade server enabling flexible front-end integrations
🔹Why ultra-low latency must be proven with data, not buzzwords
🔹Common mistakes brokers make when scaling globally
🔹Educating the industry through a newly launched Dealers Academy
🔹Where AI fits into trading infrastructure and where it doesn’t
Elina explains why resilient back-end infrastructure, deep client partnerships, and disciplined focus are critical for brokers looking to scale sustainably in today’s competitive market.
🏆 Award Highlight: Best Connectivity 2025
👉 Subscribe to Finance Magnates for more executive interviews, industry insights, and exclusive coverage from the world’s leading financial events.
#FMLS25 #FinanceMagnates #BestConnectivity #TradingTechnology #UltraLowLatency #FinTech #Brokerage #ExecutiveInterview
In this video, we take an in-depth look at @BlueberryMarketsForex , a forex and CFD broker operating since 2016, offering access to multiple trading platforms, over 1,000 instruments, and flexible account types for different trading styles.
We break down Blueberry’s regulatory structure, including its Australian Financial Services License (AFSL), as well as its authorisation and registrations in other jurisdictions. The review also covers supported platforms such as MetaTrader 4, MetaTrader 5, cTrader, TradingView, Blueberry.X, and web-based trading.
You’ll learn about available instruments across forex, commodities, indices, share CFDs, and crypto CFDs, along with leverage options, minimum and maximum trade sizes, and how Blueberry structures its Standard and Raw accounts.
We also explain spreads, commissions, swap rates, swap-free account availability, funding and withdrawal methods, processing times, and what traders can expect from customer support and additional services.
Watch the full review to see whether Blueberry’s trading setup aligns with your experience level, strategy, and risk tolerance.
📣 Stay up to date with the latest in finance and trading. Follow Finance Magnates for industry news, insights, and global event coverage.
Connect with us:
🔗 LinkedIn: /financemagnates
👍 Facebook: /financemagnates
📸 Instagram: https://www.instagram.com/financemagnates
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▶️ YouTube: /@financemagnates_official
#Blueberry #BlueberryMarkets #BrokerReview #ForexBroker #CFDTrading #OnlineTrading #FinanceMagnates #TradingPlatforms #MarketInsights
In this video, we take an in-depth look at @BlueberryMarketsForex , a forex and CFD broker operating since 2016, offering access to multiple trading platforms, over 1,000 instruments, and flexible account types for different trading styles.
We break down Blueberry’s regulatory structure, including its Australian Financial Services License (AFSL), as well as its authorisation and registrations in other jurisdictions. The review also covers supported platforms such as MetaTrader 4, MetaTrader 5, cTrader, TradingView, Blueberry.X, and web-based trading.
You’ll learn about available instruments across forex, commodities, indices, share CFDs, and crypto CFDs, along with leverage options, minimum and maximum trade sizes, and how Blueberry structures its Standard and Raw accounts.
We also explain spreads, commissions, swap rates, swap-free account availability, funding and withdrawal methods, processing times, and what traders can expect from customer support and additional services.
Watch the full review to see whether Blueberry’s trading setup aligns with your experience level, strategy, and risk tolerance.
📣 Stay up to date with the latest in finance and trading. Follow Finance Magnates for industry news, insights, and global event coverage.
Connect with us:
🔗 LinkedIn: /financemagnates
👍 Facebook: /financemagnates
📸 Instagram: https://www.instagram.com/financemagnates
🐦 X: https://x.com/financemagnates
🎥 TikTok: https://www.tiktok.com/tag/financemagnates
▶️ YouTube: /@financemagnates_official
#Blueberry #BlueberryMarkets #BrokerReview #ForexBroker #CFDTrading #OnlineTrading #FinanceMagnates #TradingPlatforms #MarketInsights
