Interpreting the 6 Current Situations in the Web3 AI Track: Compared to AI Agents, Institutions Pay More Attention to Infrastructure

Gamblers are also brainlessly following all kinds of junk projects on the Pump.Fun, and smart money makes 5 to 10 times more money through new projects on Virtuals. This article is written by 0xJeff and is compiled, compiled and contributed by Tim, PANews. (Synopsis: AI really began to grab human jobs) Global manufacturers accelerate layoffs, American college students are unemployed after graduation.. (Background supplement: Tether announces its own AI platform: support USDT and bitcoin payment, open source & no API key, feature finishing) It has been about two and a half weeks since the AI Agent market bottomed out (about $4 billion in total market capitalization), and the market is now fully entering a bull market led by Virtuals. That's right, this time the protagonist is only Virtuals. The current rally is comparable to last October-November, when Virtuals pioneered the launch of the AI Agent tokenization platform, cementing its position as an AI pioneer, providing a top-of-the-line token distribution network for all AI projects willing to "fair launch". What's different this time is the latest feature: Genesis Launch, a fairer program for launching projects and rewarding early supporters. This brings us to the first trend we explored. 1. Fair launch and gamification launch platform Genesis Launch has completely changed the market landscape, once gamblers are still brainlessly following all kinds of junk projects or small groups of manipulated tokens on PumpFun, and now they can earn 5 to 10 times with almost every new project launched. A more equitable goal than before could be achieved through the introduction of a "points" system that reconciles the interests of different stakeholders. The new project uses a fixed market cap and fixed supply launch model, both with a benchmark market cap of 112,000 VIRTUALs (approximately $200,000 fully diluted valuation). Participants can receive up to 0.5VIRTUAL, hold officially designated top AI Agent tokens, or actively participate in community discussions in the Virtuals ecosystem. The recent introduction of a cooling-off mechanism designed to curb selling behavior by users further enhances the appeal of the Virtuals Genesis Launchpad project, as sellers have to think a little more before selling. To date, Genesis Launchpad has proven to be very successful, with BasisOS being the most successful project, generating 200x benefits for participants. Since then, a large number of short-term traders have emerged on the Virtuals platform, achieving a return on investment of 5-40 times. After the success of Genesis Launches, capital and market attention once again converged on the Virtuals ecosystem, raising the valuation level of almost all AI Agent projects on the platform. Despite the resurgence of hype, the lack of quality projects remains one of the biggest challenges facing the Virtuals ecosystem, which leads us to the second trend. 2. Hype and trading over fundamentals As a trader and speculator, you can profit by investing in mediocre quality products and sub-optimal teams, thanks to the launch mechanism of the Genesis project. Under this model, the likelihood of a project's valuation being hyped up from $200,000 is much higher than the risk of a subsequent price crash (especially if it is confirmed that there are no insiders or pre-sale rounds for the project). If you have a unique idea, you can directly issue tokens first, without actually landing the product. There's no need to identify target user groups, validate market demand, or care about revenue growth and user retention. Just try your best to create market buzz and start the project (it's better to have a demo, it doesn't matter if you don't) Any project that meets the basic requirements of the project (with perfect documentation, excellent product concept and good team image) can successfully issue tokens on Virtuals Genesis Launchpad. For investors, it needs to be clear that investing in these new projects is considered short-term speculation, not medium- and long-term fundamental investments. Because nine times out of ten, these AI projects, which are touted as having good fundamentals, are essentially garbage. As a large number of low-quality projects emerge, the opportunities and gaps for high-quality projects (AI and non-AI) also expand, which leads to a third industry trend. 3.The scarcity of quality DeFi on the Virtuals platform Two months ago, I spoke to the LogarithmBasisOS team. Knowing their product (similar to Ethena's Delta-neutral strategy, but not relying on stablecoins), I was impressed by the team during the Logarithm era by building products under the LPDFi narrative (products that take advantage of Uniswap V3 liquidity). In recognition of the team, I provided them with token economy model recommendations, issuance proposals, etc. At the time, I really didn't expect the project to skyrocket, because while its DeFi products have fundamentals, the so-called "AI products" are clearly too early. But in the end, none of this matters, and the project continues to outperform the entire market. Based on the success story of BasisOS, there is still a blank space for DeFi projects to issue tokens on the Virtuals asset platform. Despite the lack of a traditional DeFi token economic model that incentivizes TVL through token releases, the traffic effect and market attention that comes with the launch of the Virtuals asset platform (especially if the project has a strong DeFi product) will be enough to ensure that your treasury receives sufficient TVL. In addition to attracting attention, a new trend and experiment similar to the era of Ethereum garbage projects in 2023-24 has emerged. This brings us to the fourth trend. 4. Volume revenue as a growth engine There was a time when many Ponzi scheme-style DeFi projects emerged. These projects support the token mechanism through a transaction fee of 1-3%, and use these funds to expand the project pool to maintain the operation of the Ponzi mechanism and return the proceeds to the token holders. The project creators at the time were even able to earn millions of dollars in a week or two, thanks to the scarcity of tokens in the market at that time and the abundance of funds from Ethereum users (at that time, people were very bold and crazy to follow the trend and invest in junk projects). Now we are seeing a similar situation in the field of AI agents. Typically, the Virtuals platform charges a 1% commission per transaction, of which 70% will be returned to the project creator. The transaction fee rate of other project start-up platforms is generally between 1% and 2%, while the project creator is provided with a fee refund rate ranging from 70% to 100%. Project Squidllora, intelligently powered by the Allora Network (recently launched on the auto.fun platform), is using creator fees to expand its treasury and trade mainstream cryptocurrencies through Allora's predictive model inference (if you don't know All...