Original title: Solana AI Hackathon and Token Launches—Note to Builders and Investors Original author: yashhsm, crypto KOL Original translation: zhouzhou, BlockBeats
Editor’s note: This article criticizes the phenomenon of token abuse in the current Crypto x AI field, pointing out that many projects hastily issue tokens for short-term hype, leading to neglect of long-term development, urging developers not to blindly follow trends but to focus on building actual products, while warning about the complexities and potential risks of token management.
The following is the original content (for readability and understanding, the original content has been reorganized):
When we started this hackathon, my vision was simple: to make Solana the AI chain and achieve tenfold growth.
Hosting a hackathon is the best way I can think of — bringing everyone together while personally entering the promising field of cryptocurrency and AI agents.
In the past month, I can confidently say that the 'SoHana AI Hackathon' has not only become a powerful brand but has also completely transformed the Solana agent ecosystem. Over 400 projects emerged in just 15 days, which is no easy feat, and I am incredibly proud of the team for contributing to an increase in Solana's token market value by $500 million to $1 billion.
Of course, we knew from the beginning that there would be token issuances due to this unique cryptocurrency trend with AI agents. This is not a problem if developers use tokens as a means of capital formation to build excellent products. We have also carefully designed all 8 tracks (with no interference from sponsors) to encourage the development of truly useful agents.
But we never expected this to turn into a gambling arena for speculators. For example, the solanaaihackathon.com/projects page attracted over 40,000 visitors in just one week. Now, 2-3 hackathon projects are issuing tokens worth $50 million every day, with a total value exceeding $500 million. Unintentionally, the Solana AI Hackathon has become an AI token discovery platform.
Current status or operational guidelines
1. Submit projects at the hackathon and appear in the Solana AI Hackathon project directory.
2. Enhance credibility with Solana AI Hackathon/SendAI.
3. Issuing tokens to be noticed and promoted by whales and KOLs, instantly achieving issuance from $5 million to $50 million.
4. Speculators see this as a hackathon project that could achieve 100x returns, and they buy in early — a perfect speculative venue.
This is not new — the typical power law distribution drives speculation.
While it is good to see some developers issuing tokens as a means of capital raising, like any popular trend, this bubble has become overly inflated. Although this model is closer to fair issuance (similar to ICOs), in my opinion, it is not the best direction for us to develop.
The problem of over-tokenization
The current trend is making developers short-sighted:
1. Currently, 90% of Crypto x AI projects are similar to cat and dog MEME coins; as long as the project side clearly states this, it is completely acceptable. But those that promote tokens as 'utility tokens' are even more hypocritical.
2. This trend may cause long-term harm to real developers (especially vulnerable groups) — they are forced to short-sighted development.
3. Most agent/infrastructure projects have found that tokens are the best way to attract attention:
Token surge → Agents/frameworks 'go viral' (but with no actual users) → Token surge → Everyone is happy.
Many projects simply release random announcements or demos (even with a market cap exceeding $200 million), catering to speculators to quickly inflate prices, and then whales/small groups promote these tokens as 'amazing technology', ultimately dumping them onto retail investors.
Many developers are aware that their products cannot be mass-produced or applied practically, so they merely keep releasing demos or random 'X x Y' announcements. Ask which ones are real, scalable, and fully on-chain agent-like products — I can wait.
Whales/KOLs are worse than venture capitalists
Whales and small groups have made this game very dirty; they will seize supplies or persuade developers to allocate tokens, and then inflate prices through false narratives ('supported by XX' — in reality, just reposting plus 'great technology'), promote it within the speculative community, and then continuously sell (or eventually sell), harming retail investors and developers. Their tokens are fully unlocked — because of this method of issuance.
Advice for developers
Don't issue tokens just for the sake of issuing tokens, especially when you hold less than 5% of them yourself. Trust me, when prices start to drop, you will have no motivation to continue development.
Yes, tokens will surge in the short term, and you will experience the fleeting pleasure of issuing tokens worth $50 million to $100 million, but when prices pull back, you will lose the motivation to continue development — only to be left with a group of holders expecting you to 'keep building'.
Remember, tokens are technically assets, but emotionally they are a huge burden. Issuing tokens is easy, but managing tokens is a very complex process — not fun.
The community, KOLs, and small groups will not help at all when prices drop — you will be left alone.
If you really need startup capital, you can issue tokens, but do not rush into action just to follow the trend.
Ask yourself: 'Even if the token market cap is below $500,000, will I continue to build this project in the next 6 months?' If the answer is yes, then go ahead and issue tokens.
Views on hackathon developers and speculators
Developers who have issued tokens without a vision: Good luck managing them, check back in 6 months. If you are a vulnerable developer without a vision, issuing tokens just to cater to speculators — I will not respect you as a developer at all. Even if your token market cap reaches $100 million or $500 million, when the time is right, I will directly criticize you.
If you have not yet issued tokens, stay strong, write 'no tokens' in your Twitter bio, and never hint at token issuance. Focus on development and delivery, and ignore false token issuances.
Advice to KOLs and speculators: Crypto x AI KOLs need to be responsible for the content you promote, especially tokens. Guide developers not to allocate token shares or chase influence for short-term gains. Speculators, do not blindly buy things you don’t understand just because a KOL you like recommends them. In the end, you will be the biggest loser.
Hackathon results and next steps
Many respected individuals in the industry contacted me asking for lists of tokens or preferred projects. Inquiring about the announcement date of the hackathon results, or even the results themselves. We received at least 50+ direct messages, and some even offered bribes or token allocations.
We decided to cancel the demo day and let Solana or Sendaifun announce the results directly. Developers need not worry, we will launch activities that are even more exciting than the demo day afterwards!
As for the issue of token issuance, there is currently no best solution, but I will continue to explore during my free time.
Overall, I am very optimistic about the Crypto x AI agent field, which is an emerging trillion-dollar industry. We have completely self-funded in the past month, launching SendAI, Solana AI Hackathon, and Solana Agent Kit.
Original link
