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Some cryptocurrency traders have made millions of dollars from the latest trending narrative, artificial intelligence (AI)-related tokens. However, the sector’s rapid rise in popularity has received backlash from many community members and industry figures, who consider the tokens “worse” than the memecoin trend.
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Cryptocurrency traders are making millions from AI-related tokens
On January 6, on-chain data analysis company Lookonchain subscriber That Solana smart trader got huge returns from AI agent and memecoin ai16z (AI16Z). The investor turned $2 million into $21 million in less than two months amid a rally in AI-related tokens.
The AI-powered cryptocurrency fund resides on the Solana blockchain and is governed by ai16zDAO. Its name is a play on words originating from the venture capital firm Andreessen Horowitz, also known as a16z, which was apparently created to draw attention to the project.
According to the publication, the whale bought 10.6 million ai16z aircraft, worth $2.27 million, between November 15 and November 22, 2024, at an average cost of $0.214. Since then, the cryptocurrency has seen a 965% surge to trade at around $2.28.
At the time of reporting, the investor’s holdings were valued at approximately $21 million, generating unrealized gains of $19 million. Earlier today, Pisces sent 5.3 million ai16z, worth $10.68 million, to Jupiter to sell through a limit order.
Meanwhile, another trader turned $123,000 into $4.5 million after betting on ai16z when the token’s market cap was $22 million. The whale bought 6.17 million AI16Z units and sold 4.67 million units for about $1.78 million last month.
The investor currently owns 2.65 million ai16z tokens worth $2.9 million, bringing total profits to more than $4.5 million in two months. This whale also earned another $13.4 million from other AI-powered cryptocurrencies like GOAT, FARTCOIN, and ARC.
Community calls AI agent tokens “overpriced”
In late 2024, AI factor tokens have gained massive popularity among cryptocurrency investors, with many experts predicting that AI-related tokens, along with meme coins, will be the biggest story of the year. Meanwhile, AI-powered memecoins stole the show at the end of the year, sending some of the cryptocurrencies in the sector into the top 10 memecoins in late December.
Ai16z, greater AI memecoin, in terms of market cap, saw a 251% increase in the past month, reaching an all-time high (ATH) of $2.47 on January 2. The token is also the third largest AI agent cryptocurrency and has seen a 25% rise over the past 24 hours, trading between $2.25 and $2.28 throughout Monday morning.
However, the sector has received heavy criticism recently from the cryptocurrency community. Detective on the series ZachXBT recently Named AI Proxy Codes is a scam. In response to Justin Taylor, another industry member, Crypto Investigator stated that “99% of it is a scam” and suggested that “bundled AI agent bribes are probably worse than other previous trends.”
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Zack argued that meme currencies “at least” don’t promise anything, “AI currencies try to manipulate as much as possible to appear legitimate to unsuspecting buyers.” Likewise, Solana’s founders argue that tokens for AI agents are overrated. According to unknown In a survey of 42 Solana founders, many of those surveyed considered AI agents, along with Blinks, to be Solana’s “most overrated sector.”
Despite the criticism, the sector still registered a 5% increase over the past 24 hours, with a daily trading volume of $2.28 billion and a market capitalization of $17.5 billion, according to CoinGecko. Data.
Featured image from Unsplash.com, chart from TradingView.com
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