AI Agents Continue To Face Backlash As Traders Rake In Millions
Some crypto traders have made millions through AI-related tokens, but the rapid rise of these agents has sparked backlash by community members and experts who argue that these tokens are even more problematic than meme coins.
Making Millions
On January 6th, Lookonchain reported that a Solana-based trader turned $2 million into $21 million in under two months by investing in the AI agent and meme coin AI16Z. The investor purchased 10.6 million ai16z between November 15th and 22nd, 2024, at an average price of $0.214. The token surged by 965%, reaching $2.28. The investor also made $13.4 million through other AI crypto tokens like GOAT and FARTCOIN.
Criticism Of AI Tokens
Despite the aforementioned gains, the sector has faced heavy criticism. ZachXBT, a well-known on-chain investigator, called AI tokens a flatout scam, claiming that 99% of the sector is fraudulent. He argued that while meme coins make no promises and are usually not meant to be taken seriously, AI coins try to appear legitimate to deceive buyers.
Additionally, a poll of 42 Solana founders found many considered AI agent tokens to be overhyped. Still, the sector has seen a 5% increase in the last 24 hours, with a trading volume of $2.28 billion and a market cap of $17.5 billion, according to CoinGecko.
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