Some cryptocurrency traders have amassed millions by investing in AI-connected tokens, which are currently at the forefront of trends. Yet, this surge in interest has sparked criticism from various individuals within the community and industry professionals. They view these tokens as potentially more risky than the meme coin craze.
Crypto Traders Make Millions From AI-Related Tokens
On January 6, the on-chain data analysis company Lookonchain reported that a shrewd Solana investor amassed substantial profits from an AI agent and memecoin named ai16z (AI16Z). In just under two months, this investor transformed a $2 million initial investment into a staggering $21 million, thanks to the surge in popularity of AI-related tokens.
The AI-controlled cryptocurrency portfolio operates on the Solana blockchain and follows rules set by ai16zDAO. Its name is cleverly derived from venture capital company Andreessen Horowitz (a16z), which seems designed to draw interest towards this project.
As per the article, it’s stated that a whale bought approximately 10.6 million ai16z tokens, valued at about $2.27 million, from November 15 to November 22, 2024. Since this purchase, the cryptocurrency has experienced an impressive surge of nearly 965%, now trading around $2.28.
As of the report’s creation, the investor’s assets were estimated to be worth approximately $21 million, representing an unrealized profit of $19 million. Earlier today, the ‘whale’ transferred 5.3 million units of ai16z, valued at around $10.68 million, into Jupiter for sale through a limit order.
In a different scenario, another investor managed to multiply their initial $123,000 investment into an impressive $4.5 million by wagering on ai16z. The astute trader had bought approximately 6.17 million ai16z tokens when its total market value was about $22 million. Recently, they sold off around 4.67 million of those tokens, earning roughly $1.78 million.
Presently, this investor owns approximately 2.65 million a16z tokens, which are worth around $2.9 million each. This adds up to over $4.5 million in earnings within just two months. Additionally, this substantial investor has earned an extra $13.4 million from other AI-related crypto tokens such as GOAT, FARTCOIN, and ARC.
Community Calls AI Agent Tokens ‘Overrated’
2024 saw a surge in the popularity of AI Agent tokens among cryptocurrency investors. Many experts forecasted that AI-related tokens and meme coins would be the dominant trend for the year. As the year drew to a close, AI meme coins captured the limelight, pushing several tokens within the sector into the top 10 meme coin rankings by late December.
AI16z, the top AI-themed cryptocurrency by market value, experienced a significant jump of 251% over the past month, reaching an unprecedented peak (all-time high) of $2.47 on January 2nd. This digital token also ranks as the third-largest AI-focused crypto and has recently witnessed a 25% spike in the last day, fluctuating between $2.25 and $2.28 during Monday morning’s trading hours.
Despite the ongoing buzz in the crypto world, I’ve noticed a wave of criticism lately, particularly towards AI agent tokens. Recently, ZachXBT, a well-known crypto investigator, labeled these tokens as a scam. In response to Justin Taylor’s comments, he emphasized that 99% of these AI agents are likely fraudulent and even suggested that the deceptive practices surrounding them could surpass previous trends in the industry.
Zach contended that memecoins are at least devoid of any guarantees, while AI coins strive to portray themselves as authentically legitimate as they can to potentially mislead unsuspecting investors. Similarly, the creators of Solana view AI agent tokens as excessively hyped. In a survey conducted anonymously among 42 Solana founders, several of them deemed AI Agents, along with Blinks, to be the most overrated sector within Solana.
In spite of facing some critique, the industry has seen a 5% growth over the past 24 hours, as reported by CoinGecko. The daily trading volume stands at approximately $2.28 billion, and its market capitalization is currently valued at around $17.5 billion.
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2025-01-07 07:34