Author: Chloe, PANews
AI meme is leading the MEME craze with a rising momentum, with CoinGecko data showing that the total market value of AI meme has soared to $2.4 billion.
Recently, GOAT achieved an astonishing 1,000-fold increase in just one week after its launch. On October 24, OKX and Binance successively launched GOAT contracts, pushing GOAT's market value to as high as $800 million, making it the leader of AI meme.
GOAT was a creation of the AI Bot "Terminal of Truth" in its self-talk. After a third party published GOAT on Pump.fun, Terminal of Truth quickly added the token to its own database and interacted with users through cultural resonance, actively promoting the market sentiment of GOAT.
The developer behind this AI, Andy Ayrey, first let two Claude 3 Opus AI models discuss the essence of existence in March this year. Then in June, he launched the AI Bot "Terminal of Truth" and created a Twitter account to allow the AI to freely express its thoughts, but Terminal of Truth operates in a semi-autonomous mode, and its posts still need to be approved by human administrators, who also decide which accounts it interacts with.
As a result, as we all know, a16z founder Marc Andreessen provided it with $50,000 in Bitcoin funding, and it eventually spawned an $800 million meme coin.
With the self-generated content of the Terminal of Truth AI combined with human-driven posts, GOAT quickly became popular, demonstrating the potential intersection of AI, meme culture, and cryptocurrencies. Through cultural resonance alone, Terminal of Truth has brought about a huge speculative wave. Now it seems that closed-source models like Claude 3 Opus have broken through their previous limitations and earned funds, indicating the possibility of fully automated trading modes for AI without human permission, and even the ability to earn funds.
The crypto circle is stirring up an AI agent craze, with promising market trading application prospects
The impact of Terminal of Truth on GOAT is inevitable, but what it has triggered is how people can use AI agents to drive and influence the direction of the financial market. Platforms like the AI agent platform Virtuals Protocol and the AI trading bot Terminal of Fun have already been deployed in the market, handing over on-chain trading and community media operations entirely to AI autonomy, and trading-type AI agents have a great chance of becoming the next market hotspot.
Speaking of practical applications, the application of AI agents in the trading market is more prominent, including real-time market data analysis, automatic execution of trades, risk management and optimization. Using AI agents can reduce labor costs, reduce emotional interference, and improve trading speed and accuracy.
For example, AI agents can use high-frequency trading data for deep learning, identify market trends and patterns, and quickly respond to market changes to achieve more accurate trading strategies, just like the AI-based prediction market + automatic trading function provided by AlphaX, which has achieved an accuracy rate of up to 80%.
Image source: DeAgentAI's live trading test on the Binance exchange
AlphaX is the first AI model based on the DeAgentAI feedback training mechanism announced by the community recently, and DeAgentAI is also the first AI feedback mechanism incentive protocol in web3, using Proof-of-Insight to integrate user feedback to continuously evolve and quickly adapt to the needs of different trading scenarios.
Whether for the C-end or the B-end, AI agent solutions have opened up a new chapter of applications, and in the face of the rapidly changing cryptocurrency ecosystem where traditional financial analysis tools and trading strategies cannot keep up, AlphaX aims to change the way market participants interact with cryptocurrencies based on AI agent technology, ushering in a new era of AI-agent cryptocurrency trading.
AI can automatically capture market dynamics that are difficult to discover based solely on price data
The operating principle of AlphaX is through two interconnected core stages. The first stage is to build a "prediction" model, where AlphaX uses deep learning and market data to build an AI prediction model that can accurately predict price trends within 2 to 72 hours, and AlphaX has currently achieved an 80% accuracy rate, with a target of improving the model's accuracy to over 90%.
Unlike traditional prediction models that rely solely on historical data, AlphaX adopts the RLHF (Reinforcement Learning from Human Feedback) framework. The unique feature of this framework is that it creates a simulation trading platform based on points, allowing users to participate in trading in a zero-risk environment.
Therefore, the large number of trading decisions made by each user on the platform become learning data for the model, becoming a source of data to expand the AI's cognitive scope. By collecting and analyzing the behavioral patterns, strategy choices, and market reactions of these real traders, the AI can capture market dynamics that are difficult to discover based solely on price data.
The second stage is "automated trading", where when the prediction model reaches the expected accuracy, AlphaX will enter the stage of creating and executing AI-generated automated trading, with the AI trader monitoring market conditions to adjust its strategy and respond quickly in the cryptocurrency market, fully realizing AI agent trading.
The core of this stage combines the operation of a rule engine and reinforcement learning. The former is responsible for setting the basic framework of trading, including risk management parameters, maximum drawdown limits, entry and exit conditions, stop loss and take profit standards, etc., while the latter endows the system with flexibility, allowing the AI to dynamically adjust its trading strategy based on market conditions, learn and optimize decisions from each trading result, and choose the most suitable trading method in different market environments.
One can imagine that the AI trader will monitor the market 24/7, and when it finds trading opportunities that meet the preset conditions, it will automatically execute the trades, and will also quickly adjust its strategy in response to market changes, making the AI agent a completely independent trading entity.
Replicate the success of training small models to reduce performance requirements
Recently, AlphaX has provided the latest BTC and ETH prediction signals through its AI algorithm, successfully predicting important market trends, including the recent bullish performance.
In addition, the decision-making ability of AI agents depends on the large language model (LLM) behind them, and one of the major obstacles to the development and maintenance of LLMs has always been the need for a large amount of computing power, as training these models requires large-scale hardware infrastructure such as high-performance GPUs or TPUs.
However, AlphaX solves this problem by first training a smaller and more accurate AI model, and then transferring the "experience" (parameters) of this small model to a larger model, allowing the larger model to have the predictive capability of the small model from the beginning, without having to learn from scratch, and requiring much less GPU time, directly solving the pain points of traditional analysis tools and the urgent need for AI trading.
Image source: DeAgentAI official Twitter account
According to the latest official news, users who participate in the latest activity launched by AlphaX and Bitlayer can not only earn rewards in the AlphaX Royale game and earn up to five times the gas, but also receive mini treasure chests. Users can also earn rewards for free through Movement.
In the past, memecoins usually originated from viral transmission trends and popular cultural references, riding wave after wave of popularity, but the pattern remains the same, and the market will always be sluggish, as memecoins have always been unable to break free of the challenge of being unable to evolve further. Now, AI agents are endowed with great potential, making AI a more powerful tool for spreading memes, refreshing the flow of funds in the market.
In addition, AI agents have also reimagined the future of cryptocurrency trading. From accurate price prediction to fully automated trading strategies, projects like AlphaX are pushing the boundaries of AI applications, redefining the way value is created and exchanged, and providing traders with unparalleled trading imagination and advantages.
