AI memes are leading the MEME craze with an unstoppable momentum. According to Coingecko data, the total market capitalization of AI memes has soared to $2.4 billion.
Recently, GOAT achieved an astonishing thousand-fold increase within just a week of its launch. On October 24, OKX and Binance both listed GOAT contracts, causing GOAT's market cap to peak at $800 million, firmly establishing it as the leader in AI memes.
GOAT is a concept that the AI Bot 'Terminal of Truth' came up with during its self-talk. After a third party published GOAT through Pump.fun, Terminal of Truth quickly wrote this token into its own database, actively driving the market sentiment for GOAT through cultural resonance with users.
Andy Ayrey, the developer behind the AI, first had two Claude 3 Opus AI models discuss the essence of their existence in March this year. Then, in June, he launched the AI Bot 'Terminal of Truth' and created a Twitter account for the AI to express its thoughts freely. However, Terminal of Truth operates in a semi-autonomous mode, where its X tweets still require approval from human administrators, who also decide which accounts it interacts with.
As everyone knows, Marc Andreessen, founder of venture capital firm a16z, provided it with $50,000 in Bitcoin funding, which ultimately led to the creation of a meme coin now valued at $800 million.
With the AI's independently generated content in Truth Terminal, coupled with human posts, GOAT quickly became popular, showcasing the potential at the intersection of AI, meme culture, and cryptocurrency. By spreading solely through cultural resonance, Truth Terminal has brought a significant wave of speculative enthusiasm. It now appears that closed-source models like Claude 3 Opus have broken previous limitations and generated profits, indicating that the possibility of fully automated trading models without human permission and even earning profits has arrived.
The cryptocurrency circle has sparked a craze for AI agents, and the market trading application prospects are promising.
The influence of Truth Terminal on GOAT is inevitable, but what it sparks is how people can leverage AI agents to drive and influence the direction of financial markets. Similar AI agent platforms like Virtuals Protocol and AI trading robot Terminal of Fun have already established a presence in the market, granting full autonomy to AI to manage on-chain trading and social media operations. Among them, trading AI agents have a significant opportunity to become the next market hotspot.
Speaking of practical applications, the application of AI agents in the trading market is even more prominent, including real-time market data analysis, automated trade execution, risk management, and optimization. Utilizing AI agents can reduce labor costs, minimize emotional interference, and enhance trading speed and accuracy.
For example, AI agents can perform deep learning through high-frequency trading data to identify market trends and patterns, quickly responding to market changes, thus achieving more accurate trading strategies, as seen with AlphaX's AI model that offers predictive market + automated trading functionality with an accuracy rate of up to 80% in cryptocurrency trading.
Image Source: DeAgentAI's live testing on Binance Exchange
AlphaX is the first AI model based on the DeAgentAI feedback training mechanism announced by DeAgentAI's community recently. Additionally, DeAgentAI is also the first AI feedback mechanism incentive protocol in web3, continuously evolving through Proof-of-Insight integration of user feedback to quickly adapt to different trading scenarios.
Whether aimed at the C-end or B-end, AI Agent solutions have opened a new chapter in applications. In the rapidly changing cryptocurrency ecosystem where traditional financial analysis tools and trading strategies struggle to keep up, AlphaX aims to change the way market participants interact with cryptocurrencies based on AI Agent technology, ushering in a new era of AI agent trading in cryptocurrency.
AI can automatically capture market dynamics that are difficult to detect by solely relying on price data.
The operational principle of AlphaX involves two interconnected core stages. The first stage is constructing a 'prediction' model. AlphaX uses deep learning and market data to build an AI prediction model capable of accurately predicting price movements within 2 to 72 hours. Currently, AlphaX has achieved an 80% accuracy rate and aims to improve this to over 90%.
Unlike traditional prediction models that solely rely on historical data, AlphaX employs the RLHF (Reinforcement Learning from Human Feedback) framework. The uniqueness of this framework lies in its creation of a points-based simulated trading platform that allows users to participate in trading in a zero-risk environment.
Thus, the numerous trading decisions made by each user on the platform become learning data for the model, serving as a data source to expand the cognitive range of AI. By collecting and analyzing the behavioral patterns, strategy choices, and market reactions of these real traders, AI can capture market dynamics that are difficult to discern by solely relying on price data.
Then comes the second stage of 'automated trading'. Once the prediction model reaches the expected accuracy, AlphaX will enter the phase of creating and executing AI-generated automated trades. AI traders will monitor market conditions to adjust their strategies and react quickly in the cryptocurrency market, fully realizing AI agent trading.
The core of this stage combines a rule engine and reinforcement learning operations. The former sets the basic framework for trading, including risk management parameters, maximum drawdown limits, entry and exit conditions, stop-loss and take-profit standards, etc. The latter grants flexibility to the system, allowing AI to dynamically adjust trading strategies based on market conditions, learn and optimize decision-making from each trading outcome, and choose the most suitable trading methods in different market environments.
It is conceivable that AI traders will monitor the market around the clock and automatically execute trades when they identify trading opportunities that meet predefined conditions. They will also quickly adjust their strategies in response to market changes, making AI agents a completely independent trading entity.
Successfully replicating the trained small model, reducing performance requirements
Recently, AlphaX provided the latest BTC and ETH prediction signals through its AI algorithm, successfully predicting significant market trends, including the recent bullish performance.
Additionally, the decision-making ability of AI agents relies on the underlying LLM (Large Language Model). A major barrier to developing and maintaining LLMs has always been the need for substantial computational power; training these models requires large-scale hardware infrastructure, such as high-performance GPUs or TPUs.
AlphaX trains a smaller and more accurate AI model first and then transfers the 'experience' (parameters) of this small model to a larger model, allowing the larger model to possess the predictive capability of the smaller model from the start, avoiding the need to learn from scratch while requiring less GPU time, directly addressing the pain points of traditional analytical tools and the urgent need for AI trading.
Image Source: DeAgentAI's official Twitter account
According to the latest official news, users who participate in the newly launched activities by AlphaX and Bitlayer can not only earn rewards in the AlphaX Royale game and earn up to five times the gas but also claim mini treasure chests. Additionally, users can earn rewards for free through Movement.
In the past, memecoins typically emerged from viral trends and pop culture references, riding wave after wave of popularity. However, the model remained the same, and the market would eventually tire, leaving memecoins unable to evolve further. Now, AI agents are endowed with powerful potential, allowing AI to become a stronger tool for spreading memes and refreshing the flow of funds in the market.
Moreover, AI agents have reimagined the future of cryptocurrency trading. From precise price predictions to fully automated trading strategies, projects like AlphaX are pushing the boundaries of AI applications, redefining the way value is created and exchanged, providing traders with unparalleled trading imagination and advantages.
