AI gaming memecoin at $1.7 mil MC – Why I believe it’s poised for a significant repricing soon

Idk if you guys saw ai16z and degenspartanAI on crypto twitter this past week, but they really blew up. They’re AI agents (basically just bots) posting on twitter. DegenAI’s meme token ran up to 40 mil MC and ai16z which is a bit more nuanced as it is an AI hedge fund ran up to almost 100 mil MC.

Here’s the alpha. The dev for both those agents has another project. Infact the tech used to build the agents came directly from an onchain AI game he’s been building. Note the last line in the discord image.

https://imgur.com/a/ArC1u2x

The game he is building is called smolworld. It’s part of the smolbrain / treasure dao ecosystem. Last cycle smalbrains spun out of the treasure dao ecosystem as a free mint NFT. They had quite the run going up to almost $20k each at the peak of the bull.

Here is the head smolbrain dev talking about it: https://imgur.com/a/vomgwNz

Smolcoin was airdropped last year to nft holders. It’s the official memecoin of the smolbrain ecosystem (smolverse). It had been bottomed out for months at just under 1 mil MC. I received the airdrop and basically forgot about it until I learned about the ai16z connection to smolworld when I decided to take a bigger position in it. Now its ticked up a bit and is sitting at a 1.7 mil MC.

https://imgur.com/a/8xQhPFD

Because it was airdropped, the distribution of smolcoin is very disperse. Over 7100 holders, which for a market of only 1.7 mil is incredibly distributed. It means that the vast majority of air drop recipients have not sold (at least not entire amount).

https://imgur.com/a/UskmAWM

I believe that the risk:reward here is very good. Having been bottomed out at 1 mil MC for months, I believe any sellers at these levels are largely exhausted.

My thesis is that smolcoin is undervalued due to lack of attention. Devs have been building in relative silence outside the smol community, but are launching smolworld and another game called smolbound soon.

Here’s the twitter for smolverse. Note the follower to MC ratio 160k / 1.7 : https://x.com/smolverse

If you know Murad (https://x.com/MustStopMurad) then you’re familiar with the memecoin supercycle thesis (say what you will about it, yes his price targets are insane, but clearly he is onto something). He believes that memecoins with NFTs and strong cult like communities are the ones to bet on. If you were on CT last cycle then you may remember smolbrains and how cultish they were (everyone in the ecosystem was pretty wealthy from all the free to mint NFTs and stuff). They’re less popular and visible now, but the community is still very active and culty (a lot of these people, myself included, round tripped 6 figure bags lol)

So I think smolcoin ticks all of Murads thesis boxes and has the AI + gaming narrative going for it.

The ai16z dev said he will be posting more about smolworld as it gets closer to completion, but has thrown out some hints that have been largely overlooked: https://imgur.com/a/CQor4qN

He has said that he is excited about smolworld and that even his non crypto AI friends (he’s in the SF AI researcher circles) are excited about it to.

https://imgur.com/a/gMX3zlS

One of the biggest issues I can think of with this thesis is that smolcoin is currently on arbitrum and arbitrum coins have performed very poorly and arbitrum is losing the L2 narrative battle. However I learned that smolcoin will soon be getting a v2 launch as smolbrains and treasure dao migrate off of arbitrum and onto the upcoming treasure L2 which is built on zksyncs tech stack. John, the main dev has said that he’d like to migrate smolcoin to the ethereum L1 with some liquidity on the treasure L2 for integrations within that ecosystem.

https://imgur.com/a/mniPYtD

What smolcoin v2 will look like exactly is not finalized. There’s talks of adding in game utility among other things however this is still all being worked out and will ultimately be up to a community vote.

Disclosure: As I mentioned I have taken a large position in smolcoin and a smaller position in smolbrains NFTs: https://market.treasure.lol/collection/smol-brains

The NFTs will for sure have utility in the upcoming games. However given the nature of NFTs vs memecoins, I think buying the coin has a better chance of giving larger multiples on investment. My target for smol is 50-100mil MC. Sounds crazy maybe, but you’ve seen how day old shitcoins run well over that every day and subsequently rug. There is no chance of smolcoin rugging as it has real devs passionate about what they are doing: https://imgur.com/a/mZ1J44M