Absurd encryption coin becomes one of the few mainstream tokens to rise against the trend in the first quarter of 2025

A cryptocurrency with an absurd name and no practical application has surprisingly become one of the few mainstream tokens that rose against the trend in the first quarter of 2025. It has not only sparked heated discussions within the crypto community but has even attracted wide attention on Wall Street, leaving many traditional investors puzzled.

This Token is Fartcoin. Its birth originated from a conversation between artificial intelligences. In an AI agent model called "terminal of truths", a chat about a famous tech entrepreneur's fondness for fart sounds triggered a chain reaction. The AI suggested, "How about we issue a Token called Fartcoin?" And so, Fartcoin was born on October 18, 2024.

Fartcoin attracted a lot of attention and pursuit from cryptocurrency enthusiasts as soon as it was launched. On December 13, 2024, a teasing tweet about Fartcoin quickly spread on social media. What made this tweet go viral was that it was shared by a well-known venture capitalist from Silicon Valley. Although he did not explicitly state that he would buy Fartcoin, for such a purely meme project, receiving public attention from such a high-profile figure is itself a form of "capital certification" and "breaking the circle signal".

Another more substantive signal comes from on-chain capital movements. Community members tracked on-chain addresses and discovered behavior patterns highly similar to those of a certain veteran hedge fund—multiple large purchases, active interactions, and early positioning. This fund was established in 2018 and is a compliance-registered all-weather strategy fund initiated by a group of experienced individuals in the encryption industry, known for focusing on speculation narrative-driven assets. Its founder frequently expressed interest in the AI meme sector on social media platforms at the end of 2024.

Meanwhile, cross-validation of data across multiple chains shows that several strategy pool addresses are very close to this fund, frequently conducting buying, locking, and liquidity allocation operations in the early stages of Fartcoin.

In addition, one of the largest market makers in the encryption market has also appeared early in the front row holdings of Fartcoin. According to on-chain data, this market maker holds 1.56% of the total supply of Fartcoin, ranking fourth. In the asset allocation of its main address, Fartcoin ranks among the top five, even surpassing some mainstream assets.

Multiple accounts highly related to the main address of this market maker were also active simultaneously at the initial launch of Fartcoin—from building positions, market making, to arbitrage, everything was done in one go. The founder of this market maker also admitted for the first time in an interview in early 2025 that he personally holds Fartcoin, jokingly stating: "I’m just still in a trapped state."

With such strong support, it's no wonder that Fartcoin's rise is so remarkable and strong, completely not following the trend of the market. According to data statistics from a top trader, in the first quarter of 2025, most mainstream assets experienced significant pullbacks: ETH has fallen over 46% year-to-date, SOL has decreased by 24%, and the sub-sectors such as AI, L1, DeFi, and Gaming are all in deep red. Amidst this sea of blood, Fartcoin is the only green on the entire chart, with a rise of 14.84% in the first quarter.

Not only did it rise during the downtrend, but after the market improved in May, Fartcoin's rise still led mainstream assets, increasing by over 50%, far exceeding Bitcoin's 23% during the same period.

The popularity of Fartcoin has not stopped at the encryption circle. What truly makes it a phenomenon is its breakout effect on Wall Street.

"We are currently in the Fartcoin phase of the market cycle." This statement comes from a billionaire who accurately predicted and shorted Lehman Brothers, the founder of a well-known hedge fund. In a letter to investors in the fourth quarter of 2024, he used an entire paragraph to analyze the rise of Fartcoin, calling it "a product of pure speculative sentiment," and placing it alongside Pets.com and Dogecoin as a typical representative of financial bubbles.

In his view, the name Fartcoin is itself a sarcastic meme coin, completely devoid of intrinsic value, lacking practical applications, and not possessing any substitutability. He even said that rather than invest in Fartcoin, he would prefer to buy a Jackson Pollock abstract painting, as at least that painting "is something people would want to hang on the wall."

But it is precisely because he strongly opposed it in the letter that it highlights the unusual nature of Fartcoin. When a financial veteran known for "rationality" and "value" begins to make lengthy comments about a meme coin, you know this is not just an ordinary air coin.

Another researcher from an asset management company wrote in a report titled "The Fartcoin Phase of the Market": "I disagree with the statement 'Fartcoin is useless.' Its purpose is to annoy us financial professionals who think we are doing serious work." The text is filled with anxiety about the irrationality of the market. He refers to this phase as "fart-style encryption economics" and points out that Fartcoin is not a failure; it perfectly hits the three new logics of the market—nihilism, attention economy, and sheer stupidity.

In his eyes, the core of Fartcoin's success is not technology, but its ability to spread. It can spark discussions, create emotions, and force everyone who takes the market seriously to respond to it. Even if you just criticize it, you have already fallen into its trap. "Fartcoin is a product of AI precisely manipulating human brain circuits. If you think it seems like a financial experiment designed by malicious artificial intelligence, that's because it is."

Another billionaire, a co-founder of a large asset management firm, who is known for his calm demeanor and factor modeling, suddenly abandoned that "rational person assumption" when faced with Fartcoin. He wrote on social media: "Ironically, Fartcoin is the only thing I don't doubt." In the context of that post at the time, this was a mild mockery of the absurdity of the entire market.

In this satire, Fartcoin does not disguise itself as having "fundamentals" like other assets. It never claims to be some kind of innovative infrastructure, nor does it peddle any technical narratives; instead, it is laid bare, openly admitting that it is merely an "emotional product." On the very day he made this statement, Fartcoin took off again, with its rise rapidly increasing.

Interestingly, a few months later, the founder of this asset management company said this: "I have to say, based on the performance of Fartcoin today and over the past month, I might need to distance myself further from what my mentor taught me."

The coin called "Fart" not only firmly stands above a market value of one billion, but surprisingly, like Bitcoin, it has its own "micro strategy" — FartStrategy.

When even the "meme" can replicate a certain well-known company's model of "buying coins, then buying coins, using holdings to support market value," this absurd drama has truly completed the final piece of the puzzle.

A well-known financial commentator dedicated a section in their 2025 column "Crypto Perpetual Motion Machines" to analyze FartStrategy, calling it "the pinnacle artwork of financial nihilism." The article begins with: "If you can package and sell air, then why can't it be Fartcoin?"

The operational logic of FartStrategy is very simple, even brazenly so: it is a DAO created specifically for the purchase of Fartcoin, and its mission statement is, "Hot air will rise, and we will ride this wave to create value for Fartcoin and $FSTR( FartStrategy's Token ) holders."

It has no profit model, no application landing, and no stable mechanism. It is just a transparent joke, dressed in the guise of a smart contract, packaging "we intend to continuously buy Fartcoin" as a kind of "financial strategy" under the name of community voting. Even the official copy bluntly states: "FartStrategy is a comically absurd example, and holding it should not be expected to yield any economic returns."

The commentator likened it to a mirror derivative of a well-known company — the latter continuously buys Bitcoin through financing to raise the company's valuation; while the former relies on the interaction between memes and DAO to create self-pressurizing hot air, forming a "Fartcoin Flywheel", a financial perpetual motion machine driven continuously by emotions. He described it as "a leveraged container with hot air as an asset" that sells $FSTR and buys more Fartcoin when its market value exceeds the total value of the Fartcoin it holds, completing the meme pixel-level closed loop.

Fartcoin comes from absurdity and stands in chaos. According to statistics from a certain data platform, from January 3, 2025, to May 9, 2025, the chip structure of Fartcoin is gradually shifting from early large holders to dispersed retail investors. Particularly, from January to May this year, the growth rate of small holding addresses ( that hold less than 1000 dollars ) has begun to rise. Meanwhile, Fartcoin has also become one of the most actively traded coins in terms of trading volume and liquidity on a certain trading platform.

From the initial institutional manipulation to the current distribution of chips. All seemingly rational financial narratives ultimately reveal their true nature in the toilet humor of Fartcoin.

Fartcoin almost meets all our stereotypes of a meme coin: a funny name, no practical value, all relying on linguistic effects and social driving to become popular, even causing traditional Wall Street investors to feel defensive.