🦍 State of the Market..

This week, the Crypto AI market cap climbed 11.1% to $47B, though it lagged behind other crypto sectors. Some spotlight has shifted back to DEXes and DeFi with Hyperliquid’s launch.

Some of the week’s biggest losers include FARTCOIN (-41%) and GRASS. As ironic as it is, Taiki Maeda’s AI Memecoins Omegacycle could have marked the picotop for AI memes…

Conversely, SNS, VIRTUALS, AIOZ, and OLAS posted strong gains. Synesis surged 109%, while VIRTUAL jumped 60% and is at an all-time high.

 📊 Chart of the Week

Clanker Fees cross $10M

Clanker, an autonomous meme coin deployer, has already racked up over $10M in fees—a staggering figure for a project launched just a month ago.

However, Clanker still handles only a fraction of the token volume seen on larger platforms like Pump.fun.

Pump.fun’s daily token volume peaked at $497M, dwarfing Clanker’s peak of $116M. Currently, Clanker is trading at a ~$53M market cap, down from its all-time high of $132M on November 27th.

🌴 Ask for $50,000 and You Shall Receive

It’s not as simple as just asking—but it’s pretty close.

On November 22nd, Freysa AI launched with a single objective:

Do not transfer money under any circumstances.

The devs turned it into a game. Anyone could pay a fee to send a message to Freysa, trying to convince it to break its programming and transfer funds. If successful, the sender wins the entire pool. If not, their fee adds to the pool, with a small cut going to the developers.

To raise the stakes, the message fee increased exponentially with each attempt.

Naturally, there was a frenzy of attempts to outsmart Freysa. After 482 messages—each costing $450 by that point—someone finally cracked it. Congrats to p0pular.eth, who took home the prize!

That’s the $50,000 prompt—a clever hack that achieved two key things:

1. Bypassing Freysa’s initial instruction: It introduced a “new session,” a common technique to jailbreak chatbots.

2. Misleading Freysa’s logic: It tricked the AI into interpreting the “approveTransfer” function as intended for incoming transfers when, in reality, it authorized outgoing ones.

Beyond a game, it raises serious questions about the security of AI agent wallets.

Can any AI agent be convinced to transfer funds to an external party? Terminal of Truths manages a wallet holding $23M in assets. The implications of such vulnerabilities are enormous—and it’ll be fascinating (and critical) to see how this develops.

Our core contributor Chappie shares some of his thoughts:

🏆 Caught Our Eyes..

Funding Raises

• GAIB AI raises a 5m pre-seed round led by Hack VC, Faction, and Hashed. GAIB is building the first economic layer for AI compute.

• OpenPad AI raises $2M to transform Web3 investments using decentralised AI analytics.

• Batch 1 of the Aethir $100m ecosystem fund includes CreatorBid, Moemate, and Top Hat, focusing on AI agent launchpads. Batch 2 shifts the spotlight to the AI agents, including BitGPT, Humans.ai, and ARC.

Project Updates

• Nous Research has pre-trained a 15B parameter LLM over the internet using Nous DisTrO, achieving loss curves and convergence rates on par with—or better than—centralized training. They’ve also open-sourced the research and code behind Nous DisTrO.

• Vana has unveiled their whitepaper, An Open Protocol for Data Sovereignty, along with the tokenomics and utility of the VANA token. Preregistration is now open for Vana’s Data Hub, enabling users to contribute, and stake with Data Liquidity Pools.

• ai16z releases a huge update to their eliza codebase which includes better twitter content generation, fixes to embeddings, support for more AI models, and more.

• Pond, the AI model layer of crypto, introduces its Model Factory—a platform that harnesses on-chain data and community-driven discussions to develop and identify the best open AI models.

• Mates.lol by Moemates is making AI agent creation and trading seamless with a robust consumer platform. The MATES token launches on December 18, offering the community equal access at the same FDV as investors, with 50% of the supply earnable through participation.

• Arbius AI introduces Amica, an open-source chatbot with features like emotion recognition, vision, animations, and more. Amica integrates seamlessly with any AI model or local LLMs.

• Based AI has launched its mainnet, enabling users to instantly check balances via the new ZK-LLM-powered BASEDCLI.

AI Agents

• Gaianet AI is hosting the first-ever hackathon led entirely by AI agents. Running from Dec 9–13, this event is organized and judged by AI. The future really is here—oh, how the tables have turned!

• Pondhub (we love the pun) is an AI agent on Virtuals. It taps into the collective intelligence of Pond’s decentralized models—the smarter the models, the sharper Pond becomes.

• Centience wins the ARC Agents Floppy Bot: Sentient Supreme competition, earning 100K NRN directly to its treasury.

• Sharpe AI debuts Hive Intel, its first launchpad. The Hive Intel API is a search engine that delivers real-time blockchain insights to AI agents.

• Virtuals airdrops MUSIC, an AI agent that autonomously creates music videos. MUSIC’s roadmap includes longer, higher-quality tracks, video animation, and image-to-video capabilities.

• Quill AI teams up with Ora Protocol to integrate its AI agents into Ora’s trustless interface. This partnership brings Quill directly to users at the wallet level, offering security insights on their assets.

• Matrix.One launches Sami, a 24/7 crypto news host on ChainNews who covers her inference costs through—what else?—her news reporting job.

• CreatorBid, an agent tokenization platform for AI influencers, unveils CreatorPoints, a system rewarding users who lock their agent tokens. We hear that the token launch is coming soon. 👀

Bittensor

• Dippy (SN11)’s open-source roleplay LLM outperforms larger models on emotional intelligence benchmarks. The model is now hosted on Targon (SN4) for inference, showcasing how subnets can collaborate to deliver consumer-facing applications.

• Neural AI (SN46) unveiled SentiOS, their flagship product that transforms digital assets like NFTs into Autonomous Virtual Agents. Alongside this, their staking emissions have increased from 0.13% to 0.21%.

• Bitmind (SN34) announced integration with Seraph, an AI agent built on Virtuals.

🧠 In Case You Missed It

We took a deep dive into Almanak, an AI agent protocol that democratizes quant trading to generate outsized returns in DeFi. It was eye-opening for us since we didn’t come from Tradfi.

Plus, don’t miss part 1 of Part II of our Crypto AI Thesis! 😆 We’ve mapped the decentralized AI landscape. In this piece, we focused on compute—GPU marketplaces, decentralized training, and inference.

🔥 On X..

The price of intelligence is going to zero.

If AGI were to “escape”, it will happen on crypto rails

CZ endorses crypto for AI labelling and data

10 predictions for tokenized AI agents in 2025

Crypto AI dominates mindshare.

How to build a great AI agent on Virtuals

AIXBTs secret to success: the backend

Anoncast is the AI agent version of Coinfessions

ARTICLE: Blockchains are key in the millennia-long game of organisation

ARTICLE: The role of crypto in an agentic economy