AI Agent Tokens Slammed as a ‘Scam’ by Crypto Community, Considerably ‘Worse’ Than Memecoin Trend

Some crypto traders have made millions of dollars from the latest leading narrative, Artificial Intelligence (AI) related tokens. However, the sector’s quick rise in popularity has received backlash from several community members and industry figures, who consider the tokens “worse” than the memecoin trend.

Smart Solana traders have reportedly made millions of dollars trading AI agent and memecoin ai16z (AI16Z).

On January 6, on-chain data analysis firm Lookonchain shared that a Solana trader obtained massive returns from the AI agent token. The investor turned $2 million into $21 million in less than two months amid the AI-related tokens rally.

The AI-managed crypto fund is on the Solana blockchain and governed by the ai16zDAO. Its name is a wordplay originating from the venture capital firm Andreessen Horowitz, also known as a16z, and is used to bring attention to the project.

According to the post, the whale purchased 10.6 million ai16z, worth $2.27 million, between November 15 and November 22, 2024, at an average cost of $0.214. Since then, the cryptocurrency has seen a 965% surge to trade around $2.28.

At the time of the report, the investor’s holdings were valued at around $21 million, making $19 million in unrealized profits. Earlier today, the whale sent 5.3 million ai16z, valued at $10.68 million, into Jupiter to sell via a limit order.

Meanwhile, another trader turned $123,000 into $4.5 million after betting on ai16z when the token’s market capitalization was $22 million. The whale purchased 6.17 million ai16z and sold 4.67 million for around $1.78 million last month.

The investor currently holds 2.65 million ai16z tokens, valued at $2.9 million, bringing the total profits to more than $4.5 million in two months. This whale also made another $13.4 million from other AI crypto tokens like GOAT, FARTCOIN, and ARC.

In late 2024, AI Agent tokens gained massive popularity among crypto investors, with several experts predicting that AI-related tokens, alongside memecoins, will be the largest narrative of this year.

AI memecoins stole the spotlight as the year ended, sending some of the tokens in the sector to the top 10 memecoins ranks in late December.

Ai16z, the largest AI memecoin by market capitalization, has seen a 251% increase in the past month, hitting an all-time high (ATH) of $2.47 on January 2. The token is also the third-largest AI agent crypto and has seen a 25% surge in the last 24 hours, trading between $2.25 and $2.28 throughout Monday morning.

However, the sector has received heavy criticism recently from the crypto community. On-chain sleuth ZachXBT recently called AI agent tokens a scam.

Responding to Justin Taylor, another industry member, the crypto detective stated that “99% of it is a scam” and suggested that “the AI agent wrapper grifts are probably worse than other past trends.”

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Zach argued that memecoins “at least” promised nothing, “AI coins try to larp as much as possible to appear legit to unsuspecting buyers.” Similarly, Solana founders consider AI agent tokens to be overhyped.

According to an anonymous poll of 42 Solana founders, several of the polled considered AI Agents, alongside Blinks, to be the “most overrated Solana sector.”

Despite the criticism, the sector still registers a 5% increase in the past 24 hours, with a daily trading volume of $2.28 billion and a market capitalization of $17.5 billion, according to CoinGecko.