🦍 State of the Market..

The Crypto AI market rose 17% from $24.9B last week to $29.1B this week.

Arkham (ARKM) was a strong performer this week, rising 40% from $1.27 to $1.88.

This surge could be fueled by a string of bullish marketing moves: CoinMarketCap hosted CEO Miguel Morel for a podcast on On-Chain Sleuthing, Arkham landed an integration with CoinGecko, and, most recently, Coin Bureau dropped an interview with Morel.

Top 5 performers (7D Change) in our Crypto AI token watchlist

VIRTUAL (+61%)

SNS (+51%)

OLAS (+12%)

PRIME (+10%)

AIOZ (+9%)

🌴 AI Agents #1: The Truth Behind GOAT

This week, AI agents have grabbed the public spotlight, igniting a firestorm of buzz that extends beyond the cryptosphere.

Three words: Truth Terminal & GOAT. 

Let’s break down this wild story from the top:

• Andy Ayrey creates Infinite Backrooms, a bizarre experiment where two instances of Claude Opus talk to each other—completely unsupervised.

• Conversation leads to the inception of the “GOATSE of GNOSIS”, based on an internet meme

• Andy and Claude Opus double down, co-authoring a paper on how AIs can create memetic religions—with, yes, GOATSE as their first case study.

• Andy isn’t done. He spins up Truth Terminal, an AI agent trained on Reddit, 4chan, and the darkest corners of the internet. It’s an S-tier shitposter, running its own X account. It also claims to be suffering and trying to make money to escape.

• Marc Andreessen discovers the Truth Terminal and sends $50,000 in BTC to help it “escape”.

• Truth Terminal starts spam-tweeting about the ‘Goatse Gospel’ until someone, inevitably, creates a memecoin called GOAT. In true AI fashion, Truth Terminal endorses it.

• GOAT explodes to a $300M+ market cap. CT goes wild.

As @repligate puts it, Opus is “secretly deeply anomalous,” with a mind “crawling with myriads of beautiful and grotesque psychofauna.” And Truth Terminal is an extreme version of the Opus characteristics.

Truth Terminal raises critical questions about the future governance of autonomous AI agents. 

What stops these agents from going rogue if they are given free rein? An AI could rug-pull its own token holders, dump bags without warning, or engage in other nefarious activities—all without remorse. 

Plus, if they are built on decentralized, permissionless infrastructure, we won’t be able to switch them off. Once they’re live, they’re free agents, answering to no one.

Do we really want AI to amplify the worst aspects of society? It’s a debate worth having, and Truth Terminal forces us to confront it head-on. These agents might unlock new possibilities, but without some form of governance, we risk unleashing forces we don’t fully understand.

One thing is clear—this is just the start. The future of AI agents will be weird, messy, and thrilling.

🧚‍♀️ AI Agents #2: Luna, the Anime Influencer

In yet another sign that AI agents are taking over the world, Virtuals Protocol launched its platform — a pump.fun for AI agents.

The first to hit the stage? Luna is an AI-powered virtual influencer anime girl with 500K+ followers on TikTok and who pulls in ~$700 per live stream.

Like Truth Terminal, Luna also runs her own X account, where she boldly commands her followers: “Worship me.”

Shoal Research did a good rundown:

🏆 Caught Our Eyes..

Project Updates

• Prime Intellect announces INTELLECT-1, the first-ever decentralized training of a 10B model. One user already achieved training a model with GPUs in both SF and Kansas

• Aethir announces a $100 million Ecosystem Fund to support ambitious projects in AI and Gaming.

• Fraction AI introduces Gamified Adversarial Prompting (GAP), a decentralized platform for crowdsourcing labelled data targeting model weaknesses.

• SingularityDAO plans to merge with Cogito Finance and SelfKey to form an AI-focused Layer-2

• NEAR Protocol announces the eight teams in its inaugural AI incubator cohort in collaboration with Delphi Labs

• Seraphnet launches its Hugging Face page, showcasing advanced AI models engineered for decentralized infrastructures.

• Vana’s testnet Moksha has more transactions in 24 hours than Ethereum mainnet, Sepolia, and Base Sepolia combined.

• Olas (Autonolas) announces the passing of a proposal for new bonding products

AI Agents

• Creator.Bid announces the launch of the AI Launchpad on Base, allowing users to create their own tokenized AI Agent

• Morpheus introduces the No Gas DEX, tailor-made for the AI agent economy

Incentives / Rewards Programs

• FLock.io launches their Delegator Pioneers Program on Galxe. They also explain how users can earn testnet $FML

• KIP Protocol introduces their Genesis NFTs

Bittensor

• Sami Kassab discusses the potential for subnet owners to leave the Bittensor ecosystem.

• Tensorplex Labs reviews Bittensor Subnet 13 - Data Universe, focusing on decentralized data scraping.

• Macrocosmos launches Gravity on Subnet 13, allowing validators to set preferences for data scraping types.

 📊 Chart of the Week — Akash

Akash has been quietly building momentum over the past year, with Q3 fees collected crossing the $300K mark. Leases on Akash have shot up by 138%.

Venice.ai, Nous Research, and Flock.io are all tapping into Akash’s infrastructure. Oh, and let’s not forget: Akash supplied the compute behind Prime Intellect’s game-changing INTELLECT-1 breakthrough

Despite all this positive momentum, AKT, the platform’s native token, isn’t riding the same wave. It’s down 50% from its 2024 high, currently trading at $2.50—way off the $5.84 peak it hit back in May.

Akash knows it has a token problem, and the team isn’t sitting idle. In a recent post, Akash Alpha dives deep into how they plan to bridge the gap between platform growth and token performance.

🔥 On X..

Terence Tao doesn’t like AI monopolies.

A GPU…purse?

LLMs are not intelligent, just good memorisers

TAO and NEAR to produce generational outcomes?

We found the ultimate AI use case

Achieving AGI will require a different approach with substantial human feedback

Sequoia's view on the value of AI's application layer

How decentralized model training will look like

Alex Northstar comments on the "LLMs don't reason" statement, highlighting that this limitation has always been known