AI memecoins endorsed by the Truth Terminal chatbot see double-digit price drop

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The Block2024/10/24 16:00

By:The Block

Quick Take AI memecoins endorsed by the Truth Terminal chatbot, such as GOAT and FARTCOIN, have seen a double-digit price drop. The wider AI memecoin market cap dropped by over 2% in the past 24 hours, according to Coingecko data.

AI memecoins endorsed by the Truth Terminal chatbot see double-digit price drop image 0

Major AI memecoins have seen double-digit price drops over the past 24 hours, signaling a cooling in the recent surge of interest sparked by endorsements from so-called AI agents like Truth Terminal and Luna.

As of the time of writing, the Truth Terminal-backed Goatseus Maximus (Ticker: GOAT) token has plummeted nearly 17%, trading around $0.066, amid a broader decline in enthusiasm for the fusion of crypto and AI.

According to Coingecko data , the total market capitalization of the AI meme token category has fallen to $1.95 billion, reflecting a 2% decrease in the past day.

Among the top five tokens listed in Coingecko’s AI meme token category, all have seen price drops: Turbo is down 3%, Goatseus Maximus has dropped 17%, Corgi AI is down 1%, Koala AI has fallen 16%, and Fartcoin has plunged by over 30%. Lesser-known AI memecoins have suffered even steeper declines, with some witnessing price drops exceeding 50%, resulting in the loss of hundreds of millions of dollars in market capitalization. The Luna by Virtuals token, which is endorsed by the Luna AI chatbot has bucked the trend and posted a modest 8% gain over the past day, according to Coingecko data .

Coingecko classifies AI meme tokens as coins inspired by or related to AI, which may leverage AI-powered agents, be created using AI tools, or derive their concepts from AI technologies and trends.

Hype surrounding the AI agent memecoin meta

Goatseus Maximus, one of the better-known AI memecoins, owes some measure of its success to endorsements by the AI chatbot Truth Terminal, which has been actively promoting the memecoin on X.com. The token appears to have been launched by an anonymous developer on Pump.fun after Truth Terminal gained attention with a series of posts known as the "Goatse Gospel." While the AI chatbot, developed by researcher Andy Ayrey, didn’t directly create the Solana-based memecoin, it mentioned it as a concept in one of its many posts, then quickly began endorsing the token after it was anonymously created on Pump.fun.

Ayrey developed Truth Terminal as an experimental AI capable of posting autonomously without human intervention. The AI's crypto-related activities, including receiving $50,000 worth of bitcoin from venture capitalist Marc Andreessen, have drawn attention to it on social and mainstream media. While Truth Terminal initially discussed launching its own token, it ultimately ended up endorsing Goatseus Maximus instead, adding to the growing hype around the project.

First AI to amass $1 million in crypto

Beyond its involvement with Goatseus Maximus, the Marc Andreessen-backed crypto-trading AI chatbot appeared to become a crypto millionaire after its holdings in a memecoin called Fartcoin surged in value last Friday. However, the @truth_terminal account was scrutinized at the end of last week, with community members flagging spelling errors in its posts as indicating a human was behind the account rather than an AI agent.

"The truth terminal makes typoes because language models are fundamentally 'simulators' — trying to predict 'what comes next' in a long string of text. A base, untuned model will output much more chaos than this," Ayrey responded .

Ayrey said he would not trade based on his insider knowledge of the project and plans to release a project roadmap, research paper and artist statement. His goal is to clearly explain the project's mechanisms and narrative, aiming to prevent market misunderstandings and curb excessive speculation.

On Thursday, cryptocurrency exchange Binance launched a new GOAT/USDT USD-Margined perpetual contract with up to 75x leverage. This move comes as the first futures offering for the Truth Terminal-backed AI meme token.

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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