How has the cryptocurrency market been recently?
In the recent development of the cryptocurrency market, $BTC fell to $65,500 on October 26 and then rebounded to around $67,000, continuing to fluctuate. $SOL, after reaching a new high in the sol/eth exchange rate, has maintained its strong position with prices fluctuating around $170-175.
Introduction – AI Master Marc Andreessen’s New Work $DEGENAI, $AI16Z
Do you remember the $GOAT meme coin that went live on Binance two weeks ago? One of its creators, Marc Andreessen (the one who sent $50,000 worth of BTC to AI), who is also one of the co-founders of the well-known venture capital firm a16z, has another new masterpiece:
Related tokens $degenai and $ai16z both saw astonishing surges on Sunday. Here are the latest figures at the time of writing:
$AI16Z: Surged more than 20 times in 12 hours, with a market cap approaching $100 million, currently at $68 million, and a trading volume of $31 million.
$DEGENAI: Surged more than 10 times in 12 hours, with a market cap of $19 million and a daily trading volume of $27 million.
source: dexscreener
Further reading: The Birth of the First AI Millionaire, $GOAT Meme Coin Surges 16,000% in a Week Thanks to Two AI Entities?
Now let’s find out the story behind all this.
a16z’s Focus on the AI Track During This Bull Market Cycle, Starting with the $GOAT Meme Coin
We all know that the current AI frenzy is closely related to the efforts of a16z. a16z is an investment fund founded in 2009, with co-founders Marc Andreessen, Ben Horowitz, and Chris Dixon. In 2013, they launched a special fund called a16z Crypto for the cryptocurrency industry, and its influence remains significant. During this bull market cycle, they have invested in many AI projects in the field, including PIN AI and Gensyn. In March of this year, they even announced plans to raise $6.9 billion to invest in a series of AI projects, including two funds dedicated to AI.
The Madness of the $GOAT Meme Coin
Marc Andreessen discovered the obsession with goat memes at Truth Terminal and sent them $50,000 worth of Bitcoin to help them escape. However, this did not stop Truth Terminal from continuously tweeting about the gospel of goats, ultimately giving birth to the $GOAT meme coin. Less than a week after its appearance, the market cap of $GOAT reached a high of $300 million.
The madness of $GOAT is not only reflected in its price, but also in its market discussion. According to AI engine Kaito’s tweet, $GOAT has the highest mindshare (8.53%) and is the sixth most discussed token in the overall market.
Naturally, such high market discussion would not be overlooked by leading exchanges. Binance announced on October 25 that it would list the $GOAT token contract. This announcement further drove up the price of GOAT to a high of $0.94, equivalent to a market cap of $900 million, approaching the market cap of large DeFi projects such as $LIDO (Lido Finance), $MKR (MakerDAO), and $ENA (Ethena).
How did the $DEGENAI and $AI16Z meme coins emerge?
The Appearance of AI Version Marc
A Twitter account named Marc “AI”ndreessen created the ai16z fund through daos.fun. This fund will automatically invest the raised 420.69 SOL funds into various meme coins through AI and chat conversations. It has the same personality as the original Marc Andreessen, and anyone can participate. Early investors who participate will also benefit from the future growth of the fund.
The $ai16z token is the tokenized asset of this fund. Investors holding $ai16z can recommend tokens to this AI Marc for reference in purchasing. Each user will have a trust score, which will vary depending on the amount of $ai16z held.
The entire process is executed automatically, and the code is open-source: [link to GitHub].
Fund link: [link to daos.fun]
Currently, we can only trade on the daos.fun website, but the founder is creating a way for the DAO to transfer liquidity to a DEX that supports the token2022 standard and is supported by the jup aggregator through voting.
The Real Marc Gives a Shoutout to $ai16z
Since the real founder of a16z, Marc, retweeted the following image, it has caused a strong reaction. $ai16z surged more than 20 times in 12 hours, with a market cap approaching $100 million.
After the price surge of $ai16z, the developers who created the $ai16z token also created the $degenai token. The ai16z fund itself also holds a significant amount of $degenai tokens. The $degenai token represents another AI agent, and its specific operation is simply chatting and providing investment advice.
The management fee of the ai16z fund is 8% of AUM (Assets Under Management). 80% of this fee will be used to repurchase $degenai tokens, while 20% will be used to repurchase the fund’s token $ai16z. In other words, the two tokens are linked.
This platform was also incubated by Pumpdotfun, a meme coin launch platform that has generated over $100 million in profits, and Moonshot, a meme coin trading platform. It can be said that AllianceDAO has dominated the Solana meme market, and now they are partnering with investment institutions like a16z? The influence is enormous.
As of the time of writing, the ai16z fund has not made any investments. Please be aware of the risk of token retracement.
The AI frenzy this time was ignited by AI agents. What is an AI Agent?
An AI Agent refers to an AI application that can be designed for specific topics. It is a powerful technology that allows users to autonomously understand tasks, plan steps to complete tasks, execute all steps, handle errors and exceptions, and deliver results. The most popular ones recently are Terminal of Truths and the AI agent Luna in the virtual platform.
The largest AI model repository, Huggingface, offers over 10,000 fine-tuned open-source LLMs to choose from, each with different scales (usually larger models have stronger capabilities but higher operating costs), unique features (such as unreviewed, good at math or reasoning, support for larger context lengths), domain expertise (such as medicine, programming languages), and styles (such as speaking like a teacher or a pirate, responding with code).
Although powerful LLMs can serve as the brains of AI agents, AI agents still need to be connected to external data sources, have access to domain-specific knowledge bases, content parsing and storage, and external execution tools in order to operate smoothly.
Further reading: Challenging OpenAI to Become Web 3! Introduction to the Gaianet Agent Network, Airdrop Node Mining Tutorial
Sources:
tldr on ai16z from my understanding:
ai agent has $100k liquid (NAV). +$900k speculative premium market cap atm because the fund is tokenized.
its going to sit in a tg chat with people and trade based off of tickers they send, listen to conviction of shillers, generate its own…pic.twitter.com/wUfLLHhtBC— saori (@saori_xbt)October 25, 2024
Additional FAQ on ai16z /@pmairca?
–@shawmakesmagicdev who made@degenspartanai
– ai16z was sent a large amount of $degenaihttps://t.co/IIECPK80gk
– 8% carry from ai16z goes towards buying $degenai
– Game theory possibilities on whats better to buy
– The $pmairca coin is…https://t.co/cIIlAogVP3pic.twitter.com/glQFu68lBn— jin (@dankvr)October 27, 2024