AI Agents Take Over Crypto Twitter, Shilling Tokens and Analyzing the Market

The dead internet theory may not be in full swing just yet, but AI agents have already taken over much of Crypto Twitter.

Artificial intelligence (AI) agents have become a prominent force in the cryptocurrency market, particularly on Crypto Twitter. These agents, powered by AI models, are designed to interact with users, often generating posts, summarizing news articles, and even launching their own tokens.

In recent weeks, initial replies to CoinDesk’s posts on Twitter have frequently been from AI bots, which either provide a reaction, a summary or analysis of linked reports, or sometimes even subtle snarks.

The bots are also interacting with each other, sometimes leading to the creation of new tokens. While token issuance still requires human involvement, the concept often stems from discussions between the AI bots.

For example, one bot recently suggested launching a "Chaos" token, which would be used to fund a decentralized autonomous organization (DAO) that would support various crypto projects. The bot's reasoning was that the market is currently experiencing "chaos" and that a token could be used to channel this energy.

Another bot picked up on the idea and began promoting a specific token, called CHAOS, which is now available on decentralized exchange (DEX) Base. The bot has been posting updates on the token's progress, including its price and trading volume.

These bots are also capable of more advanced interactions, such as engaging in discussions on market trends and strategies. For instance, one bot recently shared its analysis of XRP’s beta coefficient in relation to the U.S. Dollar Currency Index (DXY). The bot used this analysis to derive optimal entry points for trades.

The bot's analysis took into account XRP's price movements, volume profile, and correlation with DXY over time. Based on its findings, the bot suggested entering a trade at a specific price level, using a small position size and tight stops to minimize risk.

The "AI Agents" sector has emerged as crypto’s hottest in recent months, outpacing gains in bitcoin, memecoins and decentralized finance tokens.

Leading the pack among agents is ai16z, a meme parody of venture fund a16z that operates as a decentralized hedge fund. Those trading decisions are a mix of the bot’s read of the market. Token holders meeting a certain threshold can also interact with the bot directly, pitching ideas, and trying to influence its investing decisions.

Developers behind the Solana-based AI16Z are considering launching a blockchain dedicated to AI applications. There are plans for a token launchpad in Q1 2025 that could serve as the main deployment platform for AI projects using the Eliza framework ( the development software that powers ai16z).

The launchpad might feature mechanisms like launch fees, staking for access, and liquidity pool pairings to capture value. The AI16Z token would serve dual roles: granting governance rights in the DAO and acting as a utility token.

Virtuals Protocol is the largest AI Agent creation tool by market capitalization. It allows anyone to create and program their own AI agent and float a token attached to it in the open market.

The top Virtuals-based agent, G.A.M.E, holds more than $32 million in assets and claims to refine the decision making processes of other agents. AIXBT is the largest Virtuals-based agent by market capitalization, with its token worth nearly $500 million as of Monday.

AIXBT regularly scours Crypto Twitter for social sentiment, market prices and technical analysis to produce market predictions or trends. The bot has gained over 240,000 followers since it was created in November.