Forward the original title: a16z co-founder’s endorsement and a market cap surge from zero to $80 million in one day—Is the AI investment DAO taking the reins of the meme hype wave?

Is ai16z genuinely delivering innovation, or merely capitalizing on trending concepts? What exactly is ai16z?

On the weekend of October 27, a meme token named ai16z rapidly gained traction within the community. At first glance, it appeared to be yet another trend-riding “meme coin.” However, surprisingly, the project received a high-profile endorsement from a16z founder Marc Andreessen. Marc shared a concept image and the official ai16z Twitter link on his own Twitter account, giving the project significant visibility.

Got it, here’s the revised translation without italics:

Previously, Marc Andreessen donated $50,000 in Bitcoin to Andy, the founder of Truth Terminal, as seed funding, which enabled Truth Terminal to promote the meme project GOAT, leading to the emergence of a highly popular meme coin. Consequently, Marc’s endorsement of any product now draws immense enthusiasm from the market.

Related reading: “a16z on GOAT: How Our AI-Funded Project Turned $50,000 into a Millionaire’s Fortune.“

ai16z is a decentralized AI trading fund based on the Solana blockchain. As an “AI Investment DAO,” the core of ai16z is leveraging AI agents to gather market data both on-chain and off-chain, analyze community consensus, and automatically conduct token trades. This new model aims to combine AI-driven trading strategies with decentralized governance through tokenization, providing investors with more transparent and trustworthy investment opportunities.

The founder of ai16z, known as @shawmakesmagic, shared that Marc’s article gave him crucial insights into how startups and venture capital operate. Many community members believe that the advancements ai16z brings to DAO investing and fair token issuance in crypto projects make Marc’s confidence in ai16z more understandable. There is a shared belief that the convergence of AI and venture capital could significantly reshape the market landscape moving forward.

Holders of ai16z tokens can not only participate in project governance but also earn returns from the fund. Users holding 100 or more ai16z tokens can interact with the AI agent, influencing its trading decisions; the more ai16z tokens a user holds, the more weight their input carries with the AI. Interestingly, this project is also strongly linked with another token called degenai.

Degenai is an AI agent token, and both degenai and ai16z are developed by the same team. Simply put, degenai represents the AI agent itself, whereas ai16z is a redeemable fund. Users don’t communicate directly with ai16z for investment decisions but interact first with Degen Spartan AI, whose inputs indirectly influence ai16z’s final decisions. A portion of ai16z’s investment returns is also allocated to buy back degenai.

However, for now, the majority of notifications on Degen Spartan’s Telegram channel consist of pop-up alerts showing on-chain addresses purchasing degenai.

However, this hasn’t dampened the market’s enthusiasm for investing in new concepts. The tweet from a16z’s co-founder quickly pushed ai16z’s market cap to $80 million, generating a speculative premium far exceeding its on-chain net asset value (around $70,000 at the time). Naturally, the FOMO sentiment didn’t last long, and both ai16z and degenai suffered a severe “halving” this morning.

Through analysis and organization of on-chain data, the community seems to have uncovered a conspiracy group behind these two meme tokens. According to @tocuee, this group has orchestrated the launch of several other meme tokens, all related to the AI concept. Among them, LOTUS also surged into the top tokens on DexScreener’s trending list this morning.

What is DAOS.FUN behind ai16z, which is raising funds to invest in memes?

After the concept of “AI Investment DAO” gained popularity, the issuing platform behind ai16z, DAOS.FUN, also attracted attention.

This is an innovative meme token launch platform aimed at providing a more transparent and fair environment for investors on the Solana blockchain. Unlike pump.fun, DAOS.FUN operates on an invitation-only basis, meaning that only vetted projects can issue tokens on the platform. This “official selection” mechanism alleviates the burden of token selection for users.

Projects on DAOS.FUN must reach their target fundraising amount before trading begins, and all participants have the same entry cost. This distinguishes it from pump.fun.

The steps for issuing an investment DAO on DAOS.FUN include:

1. Fundraising: Creators have one week to raise the required amount of SOL. This fundraising represents a fair distribution of DAO tokens, with everyone receiving the same price.

2. Trading: After fundraising ends, the creator is responsible for investing the SOL in their preferred Solana protocols, and the token will be publicly traded on a virtual AMM. This allows the price of the DAO token to fluctuate based on the trading activity of the fund. The upside potential of this curve is unlimited, while the downside is limited to the market capitalization of the fundraising. As long as the token’s market value exceeds the original fundraising amount, users can sell their DAO tokens at any time.

3. Fund Expiration: When the fund expires, the DAO wallet is frozen, and the SOL profits are returned to token holders. Users can burn their DAO tokens to redeem the underlying assets of the DAO or, if its market value is higher than the fundraising amount, they can directly sell the tokens through the curve mechanism.

Following a weekend of FOMO-driven speculation, a surge of new investment DAOs appeared on the DAOS.FUN leaderboard, with impressive gains. Naturally, the top-ranked tokens are two DAO tokens primarily leveraging the hype around a16z and Sequoia Capital.

It is worth noting that DAOS.FUN not only follows the track and style of products like Pump.fun and Moonshot but is also from the same lineage. After DAOS.FUN gained popularity, it was quickly discovered that it is also a product incubated by AllianceDAO. This year, AllianceDAO has continuously incubated several killer products, directly igniting the meme sector and becoming the biggest dark horse fund in this cycle.

Related reading: “In Three Months, Becoming the ‘Binance of Meme Tokens’: What You Don’t Know About Moonshot.“

AI DAO and AI meme: The new narrative?

Since GOAT launched the new AI meme sector, AI meme tokens have been emerging one after another, mostly revolving around the functions of certain robots, such as dancing and trading. However, ai16z has opened a new direction for AI DAO, allowing us to see how AI robots can achieve decentralized and automated investment decision-making while interacting with humans holding AI tokens to collaboratively improve investment decisions.

This new concept immediately sparked the imagination of the crypto community. Many members who previously focused on DAO organizations have begun discussing the new growth potential brought by DAOS.FUN in conjunction with AI.

Even VCs can’t hide their excitement about this new direction, with many investors expressing their new expectations for the AI investment DAO sector. Notably, the loudest voices have come from the co-founders of AllianceDAO.

Through strategies of decentralized governance and public trading, users can gain a more transparent understanding of the AI decision-making process. The interests of token holders are directly tied to the AI DAO; even if the fund incurs losses, the shares held by investors will not be discarded. The “trustless” mechanism aligns closely with the original vision of the crypto world—achieving true decentralized trading without intermediary intervention. For most crypto investors, this is an exciting new concept, but how long the pioneers at ai16z can sustain this remains to be seen.

Disclaimer:

1. This article is reproduced from [theblockbeats )], the original title is “a16z Lianchuang platform, market value went from zero to 80 million US dollars in one day, AI investment in DAO will take over the meme hype wave?”. The copyright belongs to the original author [CMed, jack]. If you have any objection to the reprint, please contact Gate Learn Team, the team will handle it as soon as possible according to relevant procedures.

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