GM!

North Korea just pulled off one of the biggest crypto heists ever, draining $1.5 billion from ByBit—and the market felt it. Bitcoin dipped below $80K for the first time since November 2024. AI-related tokens got absolutely nuked. If you’re holding AI bags like us, we feel you.

Still, AI & crypto isn’t going anywhere. With Grok 3 and Claude 3.7 Sonnet pushing AI innovation at breakneck speed, we’re seeing smarter AI agents and new vertical solutions emerging daily.

One name that has been dominating AI crypto discussions lately? Bittensor.

Two words: Dynamic TAO (we wrote about dTAO here). The subnet boom is real: expect many more new subnets to launch soon. And to celebrate, we’re kicking off a Bittensor spotlight—for the next few weeks, we’ll highlight one standout subnet, breaking down what makes it unique.

And here’s a twist we didn’t see coming: AI-powered betting is heating up. GambleFAI is where AI models are outperforming retail traders, and making real money.

GambleFi had its moment in 2023, with crypto casinos booming. But then, memecoin season hit, and degens got distracted. Now, AI-powered betting agents like Billy Bets (@AskBillyBets), DKING (@thedkingdao), and AION5100 (@aion5100) are gaining traction—using AI to optimize bets and outplay the odds.

GambleFAI could be the next big play for degens looking beyond memecoins.

In this edition of our weekly AI Edge, we cover:

  • Clanker’s spike in volume.

  • A look into Tensorplex Dojo (Subnet 52).

  • CZ joins Vana as an advisor.

🚨 But hold up—before we dive in, are you even in our telegram channel yet. Cyra, our AI researcher, drops daily AI alpha. See it to believe it. Get in or stay rekt (we’re kidding).

PLUS: we’re experimenting with a fresh new X Spaces this Thursday, 6 March at 10AM ET. Join Saushank and me as we dive into the hottest AI & Crypto trends we’re tracking. It’ll be fun and casual. Mark your calendars and don’t miss it! 🔥

ALCH just pulled a 155% pump this week, and it checks out—constant product updates tend to get the market hyped. VANA wasn’t far behind, up 47%, after CZ officially joined as an advisor (big names still move markets, no surprise there).

Meanwhile, on the other side of the wreckage, NOVA, GRPH, and FAI got absolutely nuked, each down 30% this week.

And they weren’t the only ones. Let’s talk about the bloodbath in Web3 agent frameworks.

Source: delphidigital.io

These web3 agent frameworks have been getting obliterated—down 60-90% in the last 60 days. It seems the Q4 2024 DeAI hype has cooled, and macro uncertainty isn’t helping (Trump tariffs are here for Mexico, Canada and China).

But not all hope is lost: while prices are down bad, models are leveling up fast. Costs are dropping, intelligence is scaling, and if we see AI agents get integrated into real workflows, we will see a major sector rebound.

Clanker Sees a Spike in Volume

Source: Delphi Digital

Clanker on Base has been making waves recently, especially with its planned Coinbase listing driving a surge in volume. At its core, Clanker empowers users to deploy ERC-20 tokens on Base easily.

Right now, there are two main ways to launch tokens on Clanker:

  1. By tagging an AI agent called @clanker on Farcaster

  2. Via partner platforms like clank.fun

Token creators earn 40% of LP fees (= 0.4% of trading volume) from the Uniswap v3 pool—these can be claimed through their Farcaster-linked address on clanker.world.

With Base and Farcaster’s strong builder community, Clanker has quickly become the foundation for various projects. Some key applications built on top of Clanker include:

  • Clank.fun – A token launchpad powered by Clanker

  • Native.fun – A digital city and automated economy on Base where humans and AI agents interact.

  • BankrBot – An AI-driven trading companion that lets users buy, sell, swap, and manage wallets on Base via simple messages.

  • Anonfun – A platform for anonymous token launches on Base using zk proofs.

Source: dune.com

Since its inception in September of last year, Clanker has generated around $20 million in fees, solidifying its position as a major player in the Base ecosystem.

🌴 Bittensor Subnet 52: Tensorplex Dojo

We’re kicking off our Bittensor subnet spotlight series with… Tensorplex Dojo (Subnet 52).

Launched in October 2024, Dojo lets anyone contribute to AI alignment by crowdsourcing data labeling, ranking AI outputs, and providing feedback—all while earning TAO rewards. Think of it as a decentralized Scale AI.

To keep things legit, Dojo uses synthetic task generation, partial ground truth validation, and feedback loops to refine training data. Participants can hop in as validators, miners, or contributors, with multiple ways to earn rewards.

The bigger picture? AI training shouldn’t be monopolized by Big Tech. Dojo hands the power back to the people, aiming to become the "Human API for AI."

Right now, the Dojo Subnet runs at 1.17% emissions, producing τ 84.02 daily. Payouts break down as τ 34.45 each per day for validators and miners, while owners get τ 15.12 per day.

Stats don’t lie: So far, 3 million human feedback tasks have been completed via the Dojo API, with contributors collectively earning $1.75M (5,000 $TAO). Over 1,000 unique contributors have jumped in.

Project Updates

  • YziLabs is making a strategic bet on Vana, doubling down on the future of AI's Data Layer. And to top it off, CZ is stepping in as an advisor. YziLabs was previously Binance Labs.

  • GenSyn releases Verde, a high-scale verification system for machine learning over untrusted nodes. This allows it to reliably “onboard” every compute device in the world into its network, tapping into a massive, distributed pool of computing power to lower costs.

  • The Open Agent Alliance is formed, with members contributing towards a single user-owned tech stack for agents. Well-known members include Coinbase, NEAR, ElizaOS, Aethir, Hyperbolic and more.

  • Mira Network partnered up with GigabrainGG to bring trustless verification into AI-driven trading. More reliability = smarter plays.

  • SentientAGI just dropped Sentient Chat—an open-source AI chat platform with decentralized agents & real-time search.

  • Spheron just locked in strategic funding (undisclosed amount) from top investors, fueling its mission to shake up decentralized AI compute.

  • Allora Network and PolyhedraZK collaborate to integrate zkML with federated learning, enabling trustless, verifiable AI for DeFi and trading.

AI Agents

  • Creator Bid is now live on BNB Chain! Agents exiting the bonding curve get instantly listed on PancakeSwap—that’s seamless liquidity.

  • NEAR Protocol x Eliza OS. Eliza devs now get free AI inference via NEAR AI Hub—plus agents that handle transfers, swaps & tracking across NEAR, Bitcoin, Cosmos & EVM.

  • Akash Network just unleashed ElizaOS AI agents on the Akash Supercloud. Instant AI deployment, integration, and full throttle via their API.

  • Nillion partners with Skillfull AI. Bringing a no-code platform for private AI agents—powered by NilAI & NilDB for next-level data privacy and secure model inference.

  • Daydreams, a crypto-native agent framework, releases its v0.2.0 update that cleans up core files and introduces key features for autonomous agents including memory and a workbench.

Web2 AI

  • Perplexity launches a $50M seed & pre-seed fund.

  • GPT-4.5 is live! Rolling out now to ChatGPT Pro users, hitting Plus & Team next week, and Enterprise & Edu the week after. But wow… the API costs 30x more than GPT4o. 🤔

  • Claude 3.7 Sonnet is here! Now with hybrid reasoning—fast responses and deep, step-by-step logic. Oh, and say hello to Claude Code, an agentic coding tool that’s ready to build.

  • Octave just dropped the first LLM for text-to-speech. Unlike basic TTS that just reads words, Octave gets meaning—delivering emotional, human-like speech that actually feels real.

Bittensor

  • TAO.app is live. Get real-time, continuous analytics on the Bittensor network.

  • Taofu just launched Bittensor’s first-ever launchpad & tokenization platform. Subnet owners can now raise capital without offloading their alpha tokens.

  • Infinite Games (Subnet 6) introduces the Truth-Alpha API—allows you to get direct access to 256 competing AI models (miners) providing forecasting and market insights.

  • Bittensortalk.org is here. It’s a fresh hub for all things Bittensor—alpha leaks, big-brain takes, and high-signal discussions.

Look Ma, we made it to the blocmates podcast!

We hopped on with @Grantblocmates to discuss interesting new projects and where we see things heading for Crypto AI in 2025.

🔥 Our Weekly Top 5

#1: Are y’all having fun? But seriously, this is quite true in our own circles

#2: Surprisingly, some builders are leaving Virtuals for Ronin. Here’s why:

#3: We’re still so early in the adoption of AI

#4: PODCAST: Chris Dixon and David George of ai16z explore the collision of AI & crypto

#5: ARTICLE: The AI Agent Playbook for builders

That’s it for this week! If you have specific feedback or anything interesting you’d like to share, please just reply to this email. We read everything.

Cheers,

Teng Yan & Israel

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This newsletter is intended solely for educational purposes and does not constitute financial advice. It is not an endorsement to buy or sell assets or make financial decisions. Always conduct your own research and exercise caution when making investment choices.

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