Market Metrics

Total Crypto Market Cap: up .2% to $2.78T
Total AI Sector Market Cap: up 1% to $40B

Top Movers (7 days):

📈 TARS Protocol (TAI): up 112.2% to $0.263
📈 Dynex (DNX): up 62.5% to $0.6796
📈 Cere Network (OPTI): up 29.2% to $0.006124

Mindshare Check:

The AI sector currently accounts for 21.54% of the total crypto market’s narrative mindshare. This is down 11.06% during the past 7 days, as it appears that NEAR Protocol is singlehandedly keeping the narrative alive.

Daily News

🟠 Drama on X is heating up between a few DePIN KOLs as the Akash CEO Greg Osuri, Akash CEO, faces criticism for “complaining about competitors instead of improving his own product,” with debates around Akash's functionality, performance issues like high failure rates, accusations of fraud and gatekeeping, and disagreements involving GPU usage and payment processors.

🟠 Allora Network announced Phase 2 of their Allora Points Program, calling on developers, ML engineers, and data scientists to contribute. Participants can earn Allora Points through on-chain activities like creating topics, adding ML models, and using Allora apps, as well as off-chain activities such as community engagement and event participation

🟠 The Graph has upgraded to The Graph Network, a decentralized data service providing ultra-fast syncing, reliable uptime, and global redundancy for over 50 chains and 6,000+ subgraphs, allowing web3 developers to build applications leveraging a scalable and decentralized data layer already.

🟠 Curve founder Michael Egorov was liquidated for $140 million in CRV after the price fell below his liquidation threshold, unwinding his highly leveraged positions where he had borrowed $95.7 million against $141 million in CRV across multiple platforms at very high borrowing costs, sparking debates about the risky nature and potential market impacts of such a large leveraged trade.

Highlights of the Week

Three High-Profile Token Launches

This week, three high-profile projects in the AI sector launched their tokens. The first was io.net, which launched its token IO amidst a sea of controversy and only 2 days after the co-founder and CEO, Ahmad Shadid, stepped down. However, despite launching at a FDV of over $3 billion, the token has surprisingly held up incredibly well and has even pushed higher since the launch.

Market Maker doing gud!

Aethir Mainnet was next, launching its token ATH at a FDV of over $5 billion. The circulating supply is less than 10%, and price dumped immediately when trading started, fitting with the trend we are seeing with high FDV, low float token launches. Will they ever learn?

The final TGE for the week was ao computer, which introduced its token AO. This is one of the more ‘unique’ launches we have seen, as the project is claiming to be a 100% fair launch following Bitcoin’s economic model. However, the tokens will only become available for trading once 15% of the supply is minted, which will supposedly occur by Feb 8, 2025.

Interesting strategy…

This is just a scratching the surface of AI and DePIN projects that are planning to launch tokens this year. We expect the latter half of 2024 to be filled with token launches, as existing tokenless projects rush to tokenize during the bull market. While this explosion of new tokens will inevitably create opportunities, and likely attract capital to the AI sector as a whole, it will also lead to a bunch of poorly planned token launches and a ton of vaporware that will underperform and go to zero.

As an investor in this space, capital preservation is extremely important and shutting out the noise to focus on only the very best projects will help you avoid buying into to hype and losing money. As an Onchain Outpost reader, you are already miles ahead of the herd in understanding the fundamentals of blockchain based AI projects. We have built out a database of tokenless projects, which we are excited to share with subscribers in the near future. Stay tuned.

Superintelligence Alliance Merger is Delayed

The planned merger of AI projects SingularityNET, Fetch.ai, and Ocean Protocol into a new Artificial Superintelligence Alliance (ASI) token has been postponed to July 15th due to technical and regulatory requirements.

Despite this delay, the Alliance claims that they remain committed to leveraging the combined ASI token network to accelerate progress towards their ambitious goal of achieving decentralized "superhuman superintelligence" within the next few years.

CEO Ben Goertzel anticipates key milestones ahead, although AI-related cryptocurrencies have experienced price declines recently amid broader market downturn. The Alliance sees the merger as critical for keeping pace with big tech AI initiatives as they strive to create artificial general intelligence capabilities.

It will be interesting to see whether the merger becomes a narrative in the lead up to July 15th, potentially driving price action for the related tokens. As is often the case with crypto, these can often end up being a “sell the news” event, so if you decide to trade this, be sure to stay on top of the markets in the lead up to the date.

Meme of the Day

“Signs of adoption are indistinguishable from signs of froth”…. sure…. keep saying that 😭