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DeepSeek Disrupts AI Crypto Market: Low-Cost Model Drives Value Drop

Coin WorldTuesday, Jan 28, 2025 5:52 am ET

1min read

AI Cryptos Drop as Low-Cost DeepSeek Disrupts Market

The AI cryptocurrency market has seen a significant shift with the introduction of DeepSeek, a low-cost AI model that has disrupted the landscape. The model, developed by the DeepSeek team, offers high performance at a fraction of the cost of traditional AI models, making it an attractive option for developers and users alike.

The impact of DeepSeek on the AI cryptocurrency market has been profound. The introduction of the model has led to a drop in the value of other AI cryptocurrencies, as users and developers flock to the more affordable option. This shift has raised concerns about the future of the AI cryptocurrency market and the role of decentralized AI in the industry.

The DeepSeek team has assured users that when the model is used through platforms like Venice AI, no data can be stolen. This has helped to alleviate some of the concerns about the model's Chinese connection and its potential impact on data privacy.

The Polygon co-founder, Sandeep Nailwal, has stated that the DeepSeek R1 craze is highly beneficial for the CryptoAI track. This endorsement has further boosted the model's popularity and solidified its position in the AI cryptocurrency market.

ChainOpera AI, a platform that has partnered with DeepSeek, has seen its registered users grow to over 800,000. The platform offers a multi-role, multi-value network flow economic model design that incentivizes end users' private data through a "type-to-earn" model. This has helped to drive user engagement and growth on the platform.

The AI cryptocurrency market is in a state of flux, with the introduction of low-cost models like DeepSeek disrupting the established order. As the market continues to evolve, it will be interesting to see how other AI cryptocurrencies respond to the challenge posed by DeepSeek and whether decentralized AI can maintain its momentum in the industry.

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