In the crypto market, two AI trading bot projects—Degenai and ai16z—are attracting increasing attention. The common feature of these two projects is that they were created by the same developer, @shawmakesmagic, and they use the same trading logic and models. The difference is that Degenai originates from the pumpfun platform, while ai16z was born from daos.fun.
The background of Degenai and ai16z
Degenai has already launched and has a set of open-source trading strategies that determine buying and selling through user interactions on Discord. The performance of tokens that users have participated in in the past will influence the AI's judgment on future trading decisions, and the number of Degenai tokens held by users will also become an important weight in decision-making. As the founder of the project, @shawmakesmagic has a very high level of attention to the holding and management of Degenai tokens.
While ai16z has not yet launched, the project has garnered attention from @pmarca, receiving several retweets and interactions. Notably, the AI trading bot of ai16z is led by @pmairca, and its development background and ideas are essentially the same as those of Degenai.
The relationship and market impact of both
Degenai and ai16z have a close relationship, where Degenai is viewed as the primary token of the developer. The developer has allocated 4.2% of Degenai tokens to the DAO of ai16z, and 8% of ai16z's future trading profits will be used to repurchase Degenai tokens. Shawn (the developer) has mentioned that Degenai is his core token of interest, while ai16z is a project operated by the DAO. For investors in ai16z, buying and selling ai16z is akin to participating in the DAO's operations, similar to purchasing shares.
Currently, ai16z is performing better than Degenai, partly due to @pmarca's strong endorsement and support, and also related to the involvement of the a16z team, which has temporarily boosted ai16z's market performance. However, despite ai16z's greater popularity and performance in the market, the value of Degenai has not been fully realized, partly because pmarca's support has overshadowed its potential.
Future outlook: The relationship between ai16z and Degenai
ai16z and Degenai both use the same trading model, with Degenai leading and ai16z closely following. In the long run, the value of ai16z will further increase, especially since the backing and repurchase mechanism from the a16z team may significantly boost its market capitalization. However, Degenai remains undervalued due to the lack of significant external promotion.
It is worth noting that the earnings of ai16z come not only from its own trading performance but also include tokens distributed by some entrepreneurial projects. These tokens can be viewed as pure profit and will increase the intensity of Degenai token repurchases, further enhancing its market value.
Overall, ai16z and Degenai, as works of the same developer, will continue to attract investors' attention in the future, and their relationship and market interactions will become a deeply explored investment opportunity in the crypto space.
Characteristics of MEME coins:
Community-driven: Most MEME coins have active community support, especially on social platforms like Twitter, Reddit, and Telegram. The enthusiasm of the community often drives the price of these tokens up.
High volatility: MEME coins tend to exhibit extremely high volatility, with price increases that can be astonishing, but there are also significant risks involved.
Highly speculative: Although these coins attract a large number of speculators in the crypto market, their long-term value remains uncertain.