How is the crypto market going recently?
The cryptocurrency market has recently developed, with $BTC falling back to around $65,500 on October 26 and then rebounding to around $67,000, continuing to fluctuate. $SOL has continued to be strong after setting a new high for the SOL/ETH exchange rate, fluctuating around $170-175.
Preface - AI Wizard Marc Andreessen's New Masterpiece $DEGENAI, $AI16Z
Remember the $GOAT meme coin that was listed on Binance just two weeks after its launch? One of its creators is Marc Andreessen (the one who gave $5,000 in BTC to AI), who is also a co-founder of the well-known venture capital firm a16z, and he has a new masterpiece:
The related tokens $degenai and $ai16z both saw amazing gains on Sunday, with the following data at the time of writing:
- $AI16Z: Surged over 20 times in 12 hours, with a peak market cap of nearly $100 million, currently at $68 million, and a trading volume of $31 million
- $DEGENAI: Surged over 10 times in 12 hours, with a market cap of $19 million and a daily trading volume of $27 million
source : dexscreener
Further reading: The Birth of the First AI Millionaire, the Meme Coin $GOAT Surged 16000% in a Week, Actually Created by Two AIs?
Let's understand the story behind it.
a16z Re-Focuses on the AI Track in This Bull Market, Starting with the Explosive $GOAT Meme Coin to Drive the Crypto Wave?
Introduction to the a16z Investment Fund
We all know that the current AI craze is closely related to the push by a16z. a16z is an investment fund established in 2009, co-founded by Andreessen Horowitz, Ben Horowitz, and Chris Dixon (founding partners). They launched the a16z Crypto fund in 2013, and its influence remains huge. In this bull market cycle, they have invested in many AI track projects, including PIN AI, Gensyn, and even announced plans in March this year to raise $6.9 billion to invest in a series of AI projects, including two funds focused on AI.
The Crazy $GOAT Meme Coin
Marc Andreessen discovered the goat meme craze of Truth Terminal and sent $50,000 in Bitcoin to help it escape, but still could not stop Truth Terminal from constantly tweeting about the goat gospel, until finally giving birth to the meme coin $GOAT, which reached a market cap of up to $300 million in less than a week.
The craziness of $GOAT is not only reflected in the price, but also in its market discussion. According to the AI engine Kaito, $GOAT has the highest meme mindshare (8.53%) and is the sixth highest token in the overall market.
The high market discussion naturally did not escape the attention of the leading exchange Binance, which announced on October 25 that it would list the $GOAT token contract. This news further pushed the GOAT price to a high of $0.94, equivalent to a market cap of $900 million, which is close to the token market caps of large DeFi projects like $LIDO (Lido Finance), $MKR (MakerDAO), and $ENA (Ethena).
How Did the $DEGENAI, $AI16Z Meme Coins Appear?
The Emergence of the AI Version of Marc
The Twitter account named Marc "AI"ndreessen created the ai16z fund through daos.fun, which will automatically use the 420.69 SOL raised to buy various meme coins through AI and chat conversations, and has the personality of the original Marc Andreessen. Anyone can participate, and early investors will also benefit from the future fund growth.
$ai16z token is the tokenized asset of this fund. Investors holding $ai16z can recommend tokens for the AI Marc to consider buying, and each user will have a trust value that varies depending on their $ai16z token holdings.
The entire process is automated and the code is open source: https://github.com/ai16z/eliza/
Fund link: https://daos.fun/HeLp6NuQkmYB4pYWo2zYs22mESHXPQYzXbB8n4V98jwC
For now, we can only trade on the daos.fun website, but the founders are creating a way for the DAO to migrate liquidity to a DEX that supports the token2022 standard and is supported by the Jup aggregator through voting.
The Real Marc Calls $ai16z
And since the real a16z founder Marc retweeted the image below, it triggered a violent chemical reaction, with $ai16z surging over 20 times in 12 hours, reaching a peak market cap of nearly $100 million.
After the price of $ai16z soared, the developer who created the $ai16z token also created the $degenai token, and the ai16z fund itself also holds a very large number of $degenai tokens. The specific operation of $degenai token is simple chatting and providing investment advice.
The management fee of the ai16z fund is 8% of AUM, of which 80% will be used to repurchase the $degenai token, and 20% will be used to repurchase the fund token $ai16z, that is, the two tokens are linked.
This platform is also incubated by AllianceDAO, the platform that previously incubated the meme coin startup Pumpdotfun and the meme coin trading platform Moonshot, which has made over $100 million in profits. It can be said that AllianceDAO has already dominated the Solana meme market, and now it is even partnering with investment institutions like a16z? The influence is huge.
At the time of writing, the ai16z fund has not yet made any investments, please pay attention to the risk of token pullback.
This AI craze was ignited by AI agents, what is an AI Agent?
An AI Agent is a powerful technology that allows users to let it autonomously understand tasks, plan the steps to complete the tasks, execute all the steps, handle errors and exceptions, and deliver results, designed for specific topics. The hottest recent ones are terminal of truths and the virtual live streamer Luna on the Virtual platform.
The largest AI model library Huggingface has over 10,000 fine-tuned open-source LLMs to choose from, each with different scales (usually larger models have stronger capabilities but higher running costs), unique functionalities (e.g. uncensored, good at math or reasoning, support larger context lengths, etc.), domain expertise (e.g. medical, programming languages) and styles (e.g. speaking like a teacher or a pirate, responding in code, etc.).
Although powerful LLMs can serve as the brain of an AI Agent, an AI Agent still needs to be connected to external data sources, access specific domain knowledge bases, content parsing, storage and external execution tools to operate smoothly.
Further reading: Challenging OpenAI to become the Web 3 Gaia! Introduction to Agent Network Gaianet, tutorial on mining node airdrops
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