a16z personally goes to sea trading memes AI16Z? VCs back AI meme coin craze

(This article is reprinted with permission from Daily Coin Research)

How is the recent cryptocurrency market doing?

In the recent development of the cryptocurrency market, $BTC fell back to around $65,500 on October 26 and then rebounded to around $67,000, continuing to fluctuate. $SOL's price 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 the catalysts, Marc Andreessen (the one who gave $50,000 in BTC to AI), who is also one of the co-founders of the well-known venture capital firm a16z, has a new masterpiece:

The related tokens $degenai and $ai16z both saw amazing rallies 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, How the Meme Coin $GOAT Surged 16000% in a Week Was Actually Done by Two AIs?

Let's dive into the story behind this.

Did a16z focus on the AI track in this bull market cycle, and was the meme coin $GOAT the starting point for the crypto boom?

Introduction to a16z Investment Fund

We all know that the current AI boom 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 a dedicated crypto fund, a16z Crypto, in 2013, and its influence remains huge. In this bull market cycle, they have invested in many AI-related projects, including PIN AI and 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 Madness of $GOAT Meme Coin

Marc Andreessen discovered the frenzy around the goat meme on 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. Less than a week after its appearance, $GOAT reached a peak market cap of $300 million.

The madness 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 market discussion has soared, and it is naturally not overlooked by the leading exchange. Binance exchange announced on October 25 that it will list the $GOAT token contract, and this news has also caused the price of GOAT to continue to soar to a high of $0.94, equivalent to a market capitalization of $900 million, which has already approached the token market capitalization of large DeFi projects such as $LIDO (Lido Finance), $MKR (MakerDAO), and $ENA (Ethena).

How did $DEGENAI and $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, and this fund will automatically buy various meme coins through AI and chat conversations using the 420.69 SOL funds raised, and it has the personality of the original Marc Andreessen. Anyone can participate, and early investors will also be able to benefit from the future fund growth.

$ai16z token is the tokenized asset of this fund, and investors holding $ai16z can recommend tokens for it to consider buying, and each user will have a trust value that will vary depending on the amount of $ai16z tokens held.

The entire process is automated, and the code has been open-sourced: 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 migrate liquidity to a DEX that supports the token2022 standard and is supported by the Jup aggregator through voting.

The real Marc called $ai16z

And since the real a16z founder Marc retweeted the image below, a violent chemical reaction occurred, and $ai16z surged more than 20 times in 12 hours, with a peak market capitalization of nearly $100 million.

After the price of $ai16z soared, the developers who created the $ai16z token also created the $degenai token, and the ai16z fund itself also holds a large number of $degenai tokens. What is the specific operation mode behind the $degenai token? It is simply chat and investment recommendations.

The management fee of the ai16z fund is 8% of AUM, of which 80% will be used to repurchase $degenai tokens and 20% to repurchase the fund token $ai16z, which means the two tokens are linked.

This platform is also incubated by Pumpdotfun, which has previously incubated meme coin launch platforms and earned over $100 million in profits, and the meme coin trading platform Moonshot's AllianceDAO. 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 enormous.

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 are AI agents?

AI agents refer to a type of AI application that can be designed for specific topics, allowing users to enable them to independently understand tasks, plan the steps to complete the tasks, execute all the steps, handle errors and exceptions, and deliver results. The hottest recent ones are terminal of truths and the virtual live streamer Luna on the Virtual platform.

The largest AI model library, Hugging Face, has over 10,000 fine-tuned open-source LLMs to choose from, each with different scales (larger models usually have stronger capabilities but higher running costs), unique functionalities (such as uncensored, good at math or reasoning, supporting larger context lengths, etc.), domain expertise (such as medicine, programming languages), and styles (such as speaking like a teacher or a pirate, responding in code, etc.).

Although powerful LLMs can serve as the brain of AI agents, AI agents still need to connect to external data sources, access specific domain knowledge bases, content parsing, storage, and external execution tools to operate smoothly.

Extended Reading: Challenging to become the OpenAI of Web 3! Introduction to Agent Network Gaianet, airdrop node mining tutorial

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