(This article is reprinted with permission from Daily Coin Research)
How is the crypto market doing recently?
The recent developments in the cryptocurrency market, with $BTC briefly falling to $65,500 on October 26 before rebounding to around $67,000, continuing to fluctuate. The price of $SOL has remained strong after setting a new high in the sol/eth exchange rate, fluctuating around $170-175.
Foreword – AI wizard Marc Andreessen's new masterpiece $DEGENAI, $AI16Z
Do you remember the $GOAT meme coin that went live on Binance just two weeks after its launch? One of the creators, Marc Andreessen (the one who sent $50,000 in BTC to AI), who is also a well-known co-founder of the venture capital firm a16z, has a new masterpiece:
Related tokens $degenai and $ai16z both saw an astonishing rise on Sunday. Below are the data at the time of writing.
$AI16Z: skyrocketing over 20 times within 12 hours, with a peak market value of nearly $100 million, currently at $68 million, with trading volume reaching $31 million.
$DEGENAI: skyrocketing over 10 times within 12 hours, with a market value of $19 million, and a daily trading volume of $27 million.
source: dexscreener
Further reading: The birth of the first AI millionaire, was the meme coin $GOAT's 16,000% rise behind the work of two AIs?
Now, let's understand the story behind this.
a16z has re-invested in the AI track during this bull market cycle, starting with the meme coin $GOAT and driving the crypto wave?
Introduction to a16z investment fund
We all know that this wave of AI craze is greatly related to the push from a16z. a16z is an investment fund established in 2009, co-founded by Andreessen Horowitz, Ben Horowitz, and Chris Dixon (co-founding partner). In 2013, they launched a dedicated fund for the crypto industry, a16z Crypto, which still holds significant influence today. During this bull market cycle, they have invested in many AI track projects, including PIN AI, Gensyn, etc. They even announced plans to raise $6.9 billion this March to invest in a series of AI projects, which include two funds focused on AI.
$GOAT meme coin madness
Marc Andreessen discovered the Truth Terminal, which is obsessed with goat memes, and sent $50,000 in Bitcoin to help it escape, but still could not stop Truth Terminal from continuously tweeting about the gospel of goats, eventually leading to the emergence of the meme coin $GOAT, which reached a peak market value of $300 million within a week.
The madness of $GOAT is not only reflected in its price, but also in the surge of discussions about $GOAT in the market. According to the AI engine Kaito's tweet, $GOAT has the highest meme mindshare (8.53%) and is the sixth highest token in the overall market.
The discussion in the market has skyrocketed and will not be easily overlooked by leading exchanges. Binance announced on October 25 that it will launch the $GOAT token contract. As soon as this news broke, the price of GOAT continued to surge to a peak of $0.94, equivalent to a market value of $900 million, which is already approaching the market values of large DeFi projects like $LIDO (Lido Finance), $MKR (MakerDAO), and $ENA (Ethena).
How did $DEGENAI and $AI16Z meme coins come about?
The emergence of AI version Marc
A Twitter account named Marc 'AI' ndreessen created the ai16z fund through daos.fun. This fund will automatically purchase various meme coins with the raised funds of 420.69 SOL through AI and chat dialogue, reflecting the original character of Marc Andreessen, allowing anyone to participate. Early investors will also be able to benefit from the future growth of the fund.
$ai16z token is the tokenized asset of this fund. Investors holding $ai16z can recommend tokens to AI Marc for him to consider buying. Each user will have a trust value, which will vary based on the amount of ai16z tokens held.
The entire process is fully automated, and the code is open-source: https://github.com/ai16z/eliza/
Fund link: https://daos.fun/HeLp6NuQkmYB4pYWo2zYs22mESHXPQYzXbB8n4V98jwC
Currently, we can only trade on the daos.fun website, but the founder is creating a way for the DAO to vote to migrate liquidity to a DEX that supports token2022 standards and is backed by the jup aggregator.
The real Marc called out for $ai16z
Since the real a16z founder Marc retweeted the image below, it created a dramatic chemical reaction, with $ai16z skyrocketing over 20 times within 12 hours, peaking at nearly $100 million in market value.
After the price of $ai16z skyrocketed, the developers who created the $ai16z token also launched the $degenai token. The ai16z fund itself holds a significant amount of $degenai tokens, which actually represents another AI agent. So what is the specific operation method? It's just simple chatting and providing investment advice.
The management fee for the ai16z fund is 8% of AUM (Assets Under Management), with 80% going to repurchase $degenai tokens and 20% to repurchase the fund token $ai16z. This means that the two tokens are linked.
This platform is also incubated by the past meme coin launching platform, Pumpdotfun, which has earned over $100 million, and the meme coin trading platform Moonshot's AllianceDAO. 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 immense.
At the time of writing, the ai16z fund has not yet made any investments. Please be aware of token pullback risks.
This AI craze was sparked by AI agents. What is an AI Agent?
AI Agent refers to an AI application designed for specific topics, allowing users to autonomously understand tasks, plan steps to complete tasks, execute all steps, handle errors and exceptions, and deliver results. Recently, the most popular examples are terminal of truths and the virtual streamer Luna on the Virtual platform, both of which are AI agents.
The largest AI model repository Huggingface has over 10,000 fine-tuned open-source LLMs to choose from, each with different scales (larger models often have stronger capabilities but higher operational costs), unique features (such as uncensored, strong in mathematics or reasoning, supporting longer context lengths, etc.), domain expertise (such as medicine, programming languages), and styles (such as speaking like a teacher or pirate, responding in code, etc.).
Although powerful LLMs can act as the brains of AI Agents, AI Agents still need to connect to external data sources, access domain-specific knowledge bases, content parsing storage, and external execution tools to operate smoothly.
Further reading: Challenging to become the OpenAI of Web 3! Introduction to the Agent network Gaianet and mining instructions for airdrop nodes.
Data source:
tldr on ai16z from my understanding: ai agent has $100k liquid (NAV). +$900k speculative premium market cap atm because the fund is tokenized. it's 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 – @shawmakesmagic dev who made @degenspartanai– ai16z was sent a large amount of $degenai https://t.co/IIECPK80gk– 8% carry from ai16z goes towards buying $degenai – Game theory possibilities on what's better to buy– The $pmairca coin is… https://t.co/cIIlAogVP3 pic.twitter.com/glQFu68lBn
— jin (@dankvr) October 27, 2024
Has a16z personally dived into managing meme AI16Z? Venture capital supports the AI meme coin craze, first appearing in Chain News ABMedia.
