The Memecoin Roulette Ramps Up with Deepseek (and FAFO)

It doesn’t make sense that the crypto market is deep in the red across the board because – wait for it – China releases a cheap yet powerful AI model.

That’s right, there was a massive sell off in the U.S. markets because of a Chinese competitor to ChatGPT.

Of course, the last time China told us one thing, but another really happened, we were all locked indoors for two years…

Anyway, Deepseek and its impact on the stock market is one thing. But for it to rip the crypto markets lower? Well, that just plays into the hand of those who believe the crypto markets trade like stocks.

Which isn’t so much about crypto being like stocks, but just traders looking to trade risk, and there is no more risky market than the crypto market.

Here’s proof.

The riskiest market in the world is contained within the broader crypto market – the memecoin roulette.

I say ‘roulette’ because it is as close to gambling as you’ll ever get. But I can tell you this, if the stock market was down, and the larger cap crypto were all down, there was one thing that wasn’t down…memecoins.

Specifically, I’m talking about Deepseek memecoins that launched as Deepseek (the AI) took over the hype train on social media.

Would the Real Deepseek Please Stand Up?

As of this morning, I was able to count at least 25 different trading pairs of the ‘Deepseek’ crypto memecoin that launched (mainly on Solana) over the last day or so.

Now, let me preface all this with, none of these are affiliated with the real Deepseek company in any way at all.

These are all memecoins that were launched to ride the hype train of the latest ‘big thing’ to grip the attention of social media. Let me show you what that looks like:

What you’ll notice is these were all launched within about a 24-hour window. As Deepseek was getting global attention, these memecoins were sprouting off left, right and centre.

What you’ll also notice is that some of them were up thousands of percent in that 24-hour window. Those aren’t made up numbers either. They’re real gains from memecoin traders.

You’ll also notice the liquidity in these is very low, so we’re not talking about these making millionaires instantly, we’re talking about people walking in and out with at best a couple thousand dollars.

This sort of thing happens every time something of note happens on social media. The wilder, often the bigger reaction in memecoin launches.

F*** Around and Find Out (FAFO)

For example, President Trump posted this AI generated image on social media the other day,

It was in response to Colombia refusing to accept plane loads of illegal immigrants, then Trump imposing massive tariffs on Colombia, then Colombia deciding not to mess with the President.

Minutes later, a FAFO memecoin had launched. And yes, within that first 24 hours or so, gains in the thousands of percent were right there. And again, not millionaire makers, but a few thousand here or there.

And yes, a ridiculous number of FAFO crypto soon were trading all over decentralised exchanges.

However, the hype is short-lived. And these memecoins explode, then quickly disappear. The memecoin market is rife with this. And soon enough, Trump, Elon, or some other wild meme-related thing will pop up, tokens will launch, silly returns ensue, making peanuts into slightly larger peanuts.

And then rinse, repeat.

I’ve warned before, you’re more likely to lose in the memecoin market than win. However, if you’re happy to trade peanuts to maybe win slightly bigger peanuts, it can be fun. At worst you’ll lose a couple bucks, but at least you’ll be plugged into meme culture and at the pointy end of the wildness of memecoin trading on Solana.

Trust in crypto,
Adam Atlantic

[1] https://x.com/WarClandestine/status/1883605341503643947