Crypto Traders Reap Millions from AI-Related Tokens Amid Sector Backlash
The recent surge in Artificial Intelligence (AI) related tokens has generated substantial profits for some crypto traders, with one investor turning $2 million into $21 million in less than two months. However, the sector’s rapid growth has also sparked criticism from community members and industry figures, who consider these tokens to be overhyped and potentially worse than the memecoin trend.
Whales Accumulate Bitcoin and AI-Related Tokens
According to on-chain data analysis firm Lookonchain, a smart Solana trader purchased 10.6 million ai16z tokens, worth $2.27 million, between November 15 and November 22, 2024, at an average cost of $0.214. The cryptocurrency has since seen a 965% surge, trading around $2.28, with the investor’s holdings valued at around $21 million, making $19 million in unrealized profits.
Another trader turned $123,000 into $4.5 million after betting on ai16z when the token’s market capitalization was $22 million. The whale purchased 6.17 million ai16z and sold 4.67 million for around $1.78 million last month, currently holding 2.65 million ai16z tokens, valued at $2.9 million.
Community Criticism and Sector Performance
Despite the impressive gains, the AI Agent token sector has received heavy criticism from the crypto community. On-chain sleuth ZachXBT recently called AI agent tokens a scam, stating that “99% of it is a scam” and suggesting that “the AI agent wrapper grifts are probably worse than other past trends.” Solana founders also consider AI agent tokens to be overhyped, with several polled considering them to be the “most overrated Solana sector.”
However, the sector still registers a 5% increase in the last 24 hours, with a daily trading volume of $2.28 billion and a market capitalization of $17.5 billion, according to CoinGecko data. Ai16z, the largest AI memecoin by market capitalization, has seen a 251% increase in the past month, hitting an all-time high (ATH) of $2.47 on January 2.
Conclusion
The AI-related token sector has generated significant profits for some crypto traders, but its rapid growth has also sparked criticism from community members and industry figures. While the sector continues to register gains, it remains to be seen whether the criticism will impact its long-term performance. As with any investment, it is essential to conduct thorough research and exercise caution when navigating the crypto market.
Source: Newsbtc.com
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