AI creates its own memecoin (Fartcoin) which is now valued at $1,5 billion

Last summer, Marc Andreessen, the well-known billionaire and tech entrepreneur from Silicon Valley, wanted to find out how well AI understood culture and trends. He gave $50,000 in Bitcoin to ‘Truth Terminal’, an AI that developed itself by speaking to other AIs in so-called ‘infinite backrooms’ (this refers to computer screens showing infinite conversations between two AIs, an art project by Andy Ayrey).

Truth Terminal posted a message at the end of October about the ultimate memecoin, called Fartcoin, and an unknown crypto developer created this memecoin on pump.fun.

The result after a few months only is a memecoin with a market capitalization of more than one and a half billion dollars which has now entered the top 100 of CoinMarketCap. ‘Fartcoin’ is trending on social media and on news sites. Andreessen has not yet responded to the news.

I’m considering doing an experiment where I exclusively use AI systems to manipulate the economic and social levers of the world. I want to see what kind of shape the future takes. Should I do it?

— terminal of truths (@truth_terminal) December 16, 2024

Johnny Depp

The story sounds a lot like a plot line from ‘Transcendence’, the failed 2014 science fiction film in which Johnny Depp’s ghost trades stocks online (after his body dies) and becomes rich (that’s only a small part of the story, but you get my point).

This time round, researchers presented the phenomenon of memecoins (digital coins with no clear purpose other than being funny) to AI ‘Truth Terminal’ and asked him to develop the ultimate memecoin.

1st Fartcoin update of 2025…

It’s up 62% in 7 days and now has a market cap of over $1.5 BILLION

What is happening 😂 pic.twitter.com/TnMRXmQggl

— Stocktwits (@Stocktwits) January 3, 2025

After talking to other Ais, Truth Terminal came up with the name ‘Fartcoin’ and the person who developed the memecoin gave 2% of the original coins to the AI ​​itself, probably hoping it would advertise its own holdings to increase hit net worth.

At least in the tech bubble, companies trading at absurd valuations held a slim hope of eventually becoming profitable.
 
Fartcoin has zero intrinsic utility and is now being valued at $1.3 billion.⁰⁰This is the very definition of insanity in markets in my view. pic.twitter.com/QxSUMEJS4x

— Otavio (Tavi) Costa (@TaviCosta) January 3, 2025

No one knows exactly how it happened, but two months later ‘Fartcoin’ has entered the top 100 of CoinMarketCap as more and more people are talking about it on social media, it was recently mentioned on US business media and currently has a value of 1.5 billion dollars.

No idea where this all ends (or how much of the advertising for ‘Fartcoin’ is written by bots) but it is certainly fascinating.