"Bitcoin ETFs Bleed as China's DeepSeek AI Model Stirs Fears"

Bitcoin ETFs Experience Outflows as China's DeepSeek AI Model Spooks Investors

Bitcoin ETFs have seen a reversal in their inflows, with investors pulling out their funds amid concerns over China's DeepSeek AI model. The sudden surge in popularity of DeepSeek, an AI application developed by a Chinese company, has raised concerns about the potential impact on U.S. technology firms and the broader tech industry.

Former U.S. President Donald Trump recently expressed his concerns over the rapid emergence of DeepSeek, stating that it should serve as a wake-up call for American technology companies. He acknowledged the competitive landscape and the growing challenge posed by the production of low-cost and efficient AI models by Chinese entities.

The rise of DeepSeek has also led to the creation of fake tokens and imposter sites, targeting crypto traders' wallets. According to data from the security firm BlockAid, at least 75 fake DeepSeek tokens have been created on Ethereum and Solana so far. Scammers primarily use two methods: releasing fake tokens to exploit traders' eagerness to be a part of DeepSeek and creating imposter sites that demand users connect their wallets, only to drain them completely.

Platforms like Uniswap and DexScreener have installed filters to combat fake tokens, but new scams continue to emerge. The development has sparked a debate in crypto forums about the balance between decentralization and regulation. While many in the crypto community are against interfering with decentralized systems, the rise of scams tied to DeepSeek's popularity highlights the need for vigilance and caution among traders.

As the crypto world grows, balancing decentralization with security will be crucial to creating a safer ecosystem. Traders must remain cautious, verify project legitimacy, and stay informed to avoid falling into these traps. The crypto community must work together to combat scams and maintain the integrity of the market.