GM! Welcome to Chain of Thought, your go-to source for the best research on decentralized AI in the crypto space.

We’re excited to announce a few changes to our format.

We’ve realized we have so much great content that it’s challenging to fit it all into a single weekly newsletter — while keeping it a concise, < 5-minute read for busy folks like yourself.

Here’s what you can expect moving forward:

  • Weekly AI Edge: Curating and compiling the most interesting things in Crypto x AI you can’t miss out on

  • Research Spotlights: Focusing on a specific project that caught our attention and where the alpha is at

  • Longer-Form Research and Opinions: Deep dives into sector-specific topics and broader thought pieces. Several are already in the pipeline 👀

Also — more memes!

If you like what we’re doing, please show us some love and share this with your friends or on X. The more, the merrier.

This week, we cover:

  • Grayscale Launches a Decentralised AI Fund!

  • Worldocin goes crazy this past week

  • Marc Andreessen gives an AI agent $50K, and it launches a shitcoin 🤣

The poor IT teams dealing with the CrowdStrike outage, are just another reason we need decentralised internet 🙃

🦍 State of the Market..

Source: CoinGecko

It’s been a big week for Crypto x AI. The market cap has risen 16.7% since last week to $28.6B from $24.5B.

Some of the biggest gainers this week include TAO (up 34%), ICP (up 31%), and NEAR (up 24%).

  • TAO’s rise is linked to the resumption of normal operations on Bittensor and the release of version 7.3.0.

  • ICP just announced its integration with Ethereum, enabling apps to run entirely on-chain across multiple networks.

  • NEAR is a core part of Grayscale’s Decentralized AI Fund, with 33% weight in NEAR

📊 Chart of the Week

The WLD Rollercoaster

Source: Dexscreener

This week, $WLD spiked from a low of $1.7 to a high of $3.2. Why? On July 16th, news broke about extended token lockups for early Worldcoin contributors at Tools of Humanity. Cue the short squeeze.

But let’s zoom out a bit. The full picture, as illustrated by DefiSquared, tells a more sober story.

Worldcoin is infamous for being one of the lowest float tokens on the market, with only 2.7% of its supply circulating. Investor unlocks are scheduled to start on July 24th, and over the next year, these unlocks will account for 60% of the circulating supply.

It’s unlikely that the July 16th news, which pushed $WLD above $2, was a coincidence. It might have been strategically timed to allow insiders to offload their unlocked $WLD at a tantalizing $25B FDV.

🏆 Caught Our Eyes..

Source: Grayscale

Bittensor

  • Bittensor releases version 7.3.0 and resumes normal operations

  • Masa launches an AI data subnet on Bittensor, with a live token MASA

  • Sturdy Finance (AI optimizer for DeFi yield) updates its Bittensor Subnet

  • Datura releases a website to track $TAO metrics, including the subnet lock cost

Incentive Programs & Project Updates

  • Grass announces the final epoch of its closed beta

  • Creator Bid launches an incentivized public alpha for its AI content creation agent

  • Chasm Network- a Mixture-of-Experts network built on Mantle launches its Season 0 program.

  • Nimble Network recaps its upcoming TGE plans

  • Exolabs allows you to create your own GPU cluster with devices at home. It’s damn cool.

  • Brev.dev- a large distribution channel for Akash, gets acquired by Nvidia

  • Allora announces its version 2 testnet

  • Arweave announces that its AO Operating System is now on the browser, while AO computer crosses $447M in deposits

  • Jugemu.ai raises $1M, an AI model trained on Web3 information. Users can earn points by accessing project details and asking questions of their model

  • TL;dr on Virtuals protocol, an AI Agent protocol built on Base for gaming (token: VIRTUAL)

  • Aethir crosses $36M in annual recurring revenue

  • Commune AI announces upcoming product developments

Quick Reads

  • IridiumEagle teases his new AI project, Summer Breeze

  • Vana provides a recap of their ETH CC highlights

🧠 Open Source Corner

  • You can now train your own GPT-2 model at home for just $690.

  • Andrej Karpathy is launching Eureka Labs, an AI education company

  • Meta will not release its multimodal open-source models in EU due to regulations

  • Public AI models still underperform PhD-level humans on nearly all biology tasks.

  • Andrew Gao creates Dewey, a free chrome extension for finding similar scientific papers

🔥 On X..

J.D Vance, Trump’s VP candidate, understands the risks of centralized AI

Learn and harness AI, or be left behind

Prime Intellect on DiLoCo, a method for decentralized training. We discussed Prime Intellect previously.

Pluralis Research on decentralized training

Dragonfly Capital’s Omar provides a summary of Coatue’s EMW Keynote on the AI supercycle

Liquidsnake on why they invested in the Operations Layer of AI through Mira Network

Marc Andreessen gives an AI agent $50k and it decides to launch a shitcoin

The 1000x Podcast on AI and Ethereum

AMA on building AI agents on-chain by Theoriq

AO Ventures recaps the projects from Demo Day

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 & Joshua

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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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