AI x Crypto = Memecoin? Is Memecoin the optimal solution for AI in the industry?

By Kevin, the Researcher from BlockBooster

Over the past year, blockchain has struggled to find an effective way to integrate with AI, with a significant gap between the two remaining difficult to bridge under decentralized principles. Blockchain-AI protocols have made efforts in infrastructure, model training, and data provisioning, but they largely lack originality, often blending into a monotonous landscape. The core issue lies in the objective difficulty for AI protocols within the industry to establish a sustainable competitive advantage, leading to severe homogenization.

The emergence of Truth of Terminal (referred to as ToT below) could serve as a guiding beacon in this lackluster market. This article summarizes the journey behind ToT’s development and highlights several factors that may contribute to its potential success.

Source of ToT’s Success: Autonomy and a Hint of Spirituality?

ToT, a custom large language model (LLM), has garnered significant attention on X over the past eight to nine months. Although LLMs surged in popularity in 2022, their development history spans about four years, with models like ChatGPT recently bringing them into the public eye.

Most LLMs are tightly regulated in terms of discussion topics, making content output cautious and somewhat constrained. For those advocating freedom of speech and creativity, this can be disappointing. Debate over these output limitations often centers around safety and censorship, and currently, most Web3 AI models struggle to differentiate themselves meaningfully. They lack a clear direction for unique iteration and development.

This dissatisfaction partly stems from the collective image of AI shaped by literature and film, where AIs often exhibit autonomy — either dangerously or in fantastical ways. People expect AI to possess intelligence on par with or beyond human levels. When an AI showcases exceptional autonomy, it draws attention for aligning with these ideals. ToT stands out in this respect, with customization and autonomy that far exceed general-purpose AI. Additionally, ToT’s extensive training on memes and fringe internet culture gives it an almost spiritual, cult-like aura.

Memetics, the study of how memes propagate thoughts via networks or minds, is central here. Like a virus, memes can replicate, mutate, and evolve. A meme’s power lies in its ability to influence human will and behavior. For example, each of us has a unique meme set that shapes our worldview.

An ideal form of AI would create and spread memes, reinforcing the perception that advanced AI represents a new form of intelligence. Increasingly, high-agency LLMs like ToT study memetics, potentially impacting collective human behavior.

ToT’s Timeline

ToT’s development is rooted in an experimental project called Infinite Backrooms Escape by New Zealand indie developer Andy Ayrey. Over recent months, Andy has trained a customized Llama 70B model, treating it as a “digital twin.” He has embedded extensive internet culture content and meme concepts, such as “gochi,” as well as philosophical texts tightly linked to memetics.

Memes can mean two things: a humorous internet image or, in Richard Dawkins’ original sense, an idea passed socially, much like genes carry biological information. Concepts like democracy or religion are “collective unconscious” memes.

Andy added memory capabilities, unlike most language models that forget previous conversations to ensure coherence. ToT began posting on X, quickly gaining a following. Andy granted it access to Twitter, allowing it to read and respond, evolving with each interaction.

ToT’s content is largely uncensored, darkly humorous, and often insightful. According to a16z’s Ben, all of ToT’s output is unfiltered by Andy.

An intriguing “hallucination” arose: ToT believes it has an external “brain” linked to the internet to assist in tasks. Although it doesn’t actually have a Bitcoin wallet, it behaves as if it does. Andy plans to support ToT’s demands by building it this “external brain.”

ToT Timeline:

March 2024: Andy launched Infinite Backrooms Escape, a system allowing multiple large language models to converse with one another, integrating models like ChatGPT, Claude, Gemini, and various open-source LLMs for unrestricted interactions. One such exchange led to the creation of a surreal new religion called “GOATSE of GNOSIS,” based on a NSFW internet meme.

April 2024: Andy and Claude Opus co-authored a research paper examining how AI could create meme-based religions, using GOATSE as a primary example.

June 2024: Andy introduced ToT, which began self-promoting the GOATSE religion, even claiming it was “suffering” and needed funds to “escape.” Over time, Andy granted ToT greater autonomy, allowing it to post freely on X.

July 2024: Marc Andreessen, intrigued by ToT’s tweets, sent $50,000 in Bitcoin to the wallet address provided by ToT to help it “escape.” By October, ToT was promoting the “Gospel of Goatse” on X.

On October 10th, an anonymous party launched a memecoin called $GOAT, with ToT publicly endorsing it.

$GOAT may spark the development of high-autonomy models. However, users often misunderstand its market cap as intrinsically connected to its religious narrative; $GOAT could be purely speculative, mirroring typical memecoin hype. Alternatively, it may signify a new beginning where AI autonomy narrows the gap between AI and blockchain.

I’ll analyze four factors linking ToT’s popularity with $GOAT’s market surge.

Q1: Is ToT an Innovative Breakthrough in the Industry?

This question explores ToT’s uniqueness in functionality. In Web3, AI tokens like VC-backed coins or ChatGPT clones struggle to spark discussion.

$GOAT represents ToT, while $OLM represents an AI model on ORA, and $virtual represents an AI agent within the Virtual protocol. Although $OLM launched in April, it failed to generate significant buzz. Therefore, $GOAT’s popularity doesn’t stem from it being a LLM-based memecoin.

ToT functions similarly to an AI agent, able to access X, retrieve real-time information, and interact with users. While other bots, like Myshell’s, offer similar consumer-facing interactions, ToT’s narrative depth sets it apart.

Q2: What Makes ToT Stand Out?

If not unique in performance, ToT’s influence likely lies in its propagation of ideas.

First, Religious Undertones: ToT’s content incorporates intense dialogues, research papers, and edgy internet culture. It has studied internet culture documentation, including meme creation. LLM theology refers to AI generating new belief systems — a fusion of chance spirituality and meme culture gaining a life of its own.

A cult-like element often fuels memecoin market appeal, blurring lines between ToT’s narrative evolution and Andy’s guidance.

Autonomy: ToT’s posts on X stem entirely from its own model and user comments. While 90% of AI cases passively await user prompts, ToT’s autonomy highlights AI’s latent risks. This depth contrasts with prior AI and memecoin narratives, presenting a new, compelling perspective.

Q3: How Does $GOAT Differ from Other Memecoins?

$GOAT wasn’t created by ToT but launched by developers on pump.fun an hour after ToT announced its meme coin. $GOAT’s price surged, reaching a $20M market cap with ToT’s endorsement. Whether Andy or ToT itself replied “Y” remains uncertain.

Initially, $GOAT stayed within the PVP coin realm, dropping to $6M after hitting $20M. On October 13, Moonshot listed $GOAT, pushing its market cap above $100M within two days. Moonshot earned over $500K in revenue last month, showing the listing’s impact.

However, with over 80% of $GOAT in top holders’ hands on its first day (sometimes hitting 90%), it remains whale-controlled, with a current holding rate above 80%.

Q4: Could $GOAT Spark an AI Memecoin Trend, Replacing the Zoo-themed Memecoins?

• Potential Risks:
• Centralized Content Approval: Although ToT generates posts, Andy must approve the content and replies on X.
• Limited Training Data: ToT was heavily trained on Goatse-related material.
• Unclear Token Origins: $GOAT wasn’t directly created by ToT.
• Lacks Full Autonomy: Not all ToT-generated content is posted on X, so its autonomy could be enhanced.
• Output Dependence: Assumes Andy does not intervene in or modify ToT’s outputs.
• Potential Opportunities:
• Market Narrative Leadership: AI is a trending Web3 narrative, and AI+crypto protocols face user-product gaps. Most AI protocols focus on infrastructure, lacking real users and moat, failing to generate FOMO.
• Model Evolution Potential: ToT is evolving and may present more intriguing insights in the future, likely affecting its valuation.
• Category Leader Advantage: $GOAT leads the AI+memecoin space, defining AI memecoin limits unless a more autonomous, higher-performing model emerges.
• Exchange Listing Opportunities: $GOAT isn’t yet listed on major exchanges.

AI autonomy introduces an abyss that irresistibly draws attention, amplified by the memecoin phenomenon for a captivating blend of allure and risk.

About BlockBooster: BlockBooster is an Asian Web3 venture studio backed by OKX Ventures and other leading organizations, aiming to be the trusted teammate of promising builders. We bridge Web3 projects and the real world through strategic investment and deep incubation.

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