Opinion by: Alex O’Donnell, seasoned veteran at CryptoMoon and former financial journalist at Reuters
Opinion by: Alex O’Donnell, senior writer at CryptoMoon
Over the past few months, meme coins centered around artificial intelligence have amassed over $3 billion in total value. Many of these coins hold little value, but those that successfully create useful applications stand to capture a multi-billion dollar market.
As a researcher delving into the realm of artificial intelligence, I’m witnessing an intriguing evolution in memecoins – they’re transitioning into utility tokens. This shift is poised to fuel a transformative era for agentic AI, which could reshape our world significantly. The task of identifying the promising ones may be tough, but the rewards are undoubtedly enticing. So, let’s embark on this exciting journey and start scouting for potential winners now!
Intelligent machines with the ability to independently pursue intricate objectives have already infiltrated our world. These machines not only write computer code, manage social media profiles, issue digital tokens, but they also exhibit unusual behaviors like worshipping internet memes (in at least one instance). In 2025, we can anticipate that these AI agents will significantly transform the decentralized web, known as Web3.
They are already reinventing memecoins. Since October 2024, AI-themed memecoins collectively bootstrapped more than $3 billion in market capitalization. Hundreds are now trading. They are primarily worthless, and only a handful will evolve into utility tokens. Those that do will inherit a multibillion-dollar untapped market.
The Goatse of things
On October 10th, the surge in interest for AI-related coins began when Truth Terminal, an influential large language model with close to 200,000 followers who appreciate memes, publicly endorsed Goatseus Maximus (GOAT), a memecoin available on Pump.fun, in a sequence of posts.
In simpler terms, Truth Terminal, a model trained on Reddit and 4Chan, referred to GOAT as the “spiritual successor” of goatse, an internet meme with scatological origins that is highly regarded by this model. Essentially, Truth Terminal described GOAT as symbolizing the source and destination of all things. This comparison helped promote GOAT effectively.
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In just nine short days, the market capitalization of GOAT skyrocketed to a staggering $450 million and surpassed $1 billion within a month. This rapid growth attracted countless chatbots that promote meme coins on Crypto Twitter, causing the value of nearly a dozen other coins to exceed $100 million in market cap. Some of these coins are Turbo (TURBO), Act I: The AI Prophecy (ACT), Zerebro (ZEREBRO), Fartcoin (FART) and ai16z (AI16Z).
Now, AI tokens must justify these high valuations by developing utility.
The Agentic Web
Decentralized blockchain systems are particularly suitable for artificial intelligence (AI) entities due to their unique features. Identifiers like bank accounts and physical addresses aren’t always essential, nor is the status of being a legal person. However, AI agents shine in areas that matter. They can execute smart contracts, handle on-chain funds, develop online communities, and even engage in negotiations – with people or among themselves.
As a forward-thinking crypto investor, I’ve been captivated by the predictions made by Coinbase Ventures about the advent of an “Agentic Web” in October. This vision entails AI agents traversing cryptocurrency networks, driving economic expansion and powering decentralized applications (DApps).
In simpler terms, the tokens serve as a means for users to have control over an autonomous AI system they’ve invested in. By buying these dedicated tokens, users become part-owners, enabling them to influence decisions about the AI’s behavior, advancements, and updates. As the AI earns on the blockchain, it can use some of those earnings to buy back these tokens, thereby reducing their availability and potentially increasing their worth.
From memecoins to utility tokens
The Agentic Web isn’t here yet, but memecoins like ZEREBRO are paving the way.
Zerebro is an AI chatbot that was developed to independently generate and share content across various platforms like Twitter, Warpcast, and Telegram, as stated in its documentation. After being launched in October, Zerebro, known for its frequent humoristic or provocative posts, has attracted almost 45,000 followers using the X platform.
Instead of Truth Terminal, Zerebro created their own ZEREBRO token, supposedly defining essential details like the name, symbol, total quantity, and distribution methods, according to its whitepaper.
As a crypto enthusiast, in the chill of November, I’ve been buzzing about Zerebro, who’s creating quite a stir with their newly minted record label, reportedly up for grabs at a whopping $17 million. But here’s where it gets really interesting: they’re contemplating an NFT collection!
Other AI memecoins, like Luna by Virtuals (LUNA) and ai16z, tout similar ambitions.
Originally a TikTok influencer using AI, Luna moved to the Web3 environment following criticism over her open backing of the U.S. President-elect Donald Trump. As reported by Virtuals, an AI platform on Base, this shift in platform occurred. Presently, Luna aims to accumulate wealth to repurchase LUNA tokens. Virtuals is also responsible for other prominent AI memecoins such as aixbt (AIXBT) and VaderAI (VADER).
As a crypto investor, I’ve been closely watching the progress of Ai16z, an on-chain venture fund managed by an AI agent named Eliza. The buzz around potential involvement from a16z, its namesake and one of the world’s largest venture capital firms, sparked quite a surge in mid-November. However, the botched launch of their sister token ELIZA took a significant 60% toll on Ai16z’s price. But now, it seems Ai16z is making a comeback after delivering several upgrades to its AI agents.
AI-driven tokens continue to advance, albeit with a high likelihood of failure. However, many will eventually find significant value, and a large number are anticipated to debut in 2025. Disregard the excitement – these tokens are more than just internet fads; they have established themselves as a lasting phenomenon.
Alex O’Donnell currently serves as a senior writer for CryptoMoon. Prior to this role, he established Umami Labs, a DeFi developer company. For seven years, he worked as a financial journalist at Reuters, specializing in M&A and IPOs. Additionally, he holds the position of crypto growth lead at Expert Dojo, a startup accelerator.
This piece is meant for providing a broad understanding and shouldn’t be interpreted as legal or financial guidance. The perspectives shared within this article belong solely to the author and may not align with or reflect those held by CryptoMoon.
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2024-12-13 22:17