February 3, 2025
Ever ask for $50,000 and actually got it? Someone did, and its chilling how AI can be jailbroken
GM
Trump: “I am pleased to announce that David O. Sacks will be the White House AI & Crypto Czar”
Wait, what? Didn’t see that coming. Somehow, our favourite All-In tech bro just got handed the keys to the kingdom for the coming AI and crypto cycle.
But here’s the real kicker: Trump managed to put “AI” and “Crypto” in the same sentence. That alone has 2025 looking pretty bullish for us.
Meanwhile, the space—especially AI agents—is moving at warp speed. After chatting with a bunch of teams, it’s starting to be clear who’s truly pushing the frontier—and who’s stuck building tech that might’ve been cutting-edge six months ago but feels irrelevant today.
Remember: Memes are just the gateway drug to the real revolution brewing in Crypto AI.
-Teng Yan
In this edition of our weekly AI Edge, we cover:
This week, the Crypto AI market cap climbed 11.1% to $47B, though it lagged behind other crypto sectors. Some spotlight has shifted back to DEXes and DeFi with Hyperliquid’s launch.
Some of the week’s biggest losers include FARTCOIN (-41%) and GRASS. As ironic as it is, Taiki Maeda’s AI Memecoins Omegacycle could have marked the picotop for AI memes…
Conversely, SNS, VIRTUALS, AIOZ, and OLAS posted strong gains. Synesis surged 109%, while VIRTUAL jumped 60% and is at an all-time high.
Clanker, an autonomous meme coin deployer, has already racked up over $10M in fees—a staggering figure for a project launched just a month ago.
However, Clanker still handles only a fraction of the token volume seen on larger platforms like Pump.fun.
Pump.fun’s daily token volume peaked at $497M, dwarfing Clanker’s peak of $116M. Currently, Clanker is trading at a ~$53M market cap, down from its all-time high of $132M on November 27th.
It’s not as simple as just asking—but it’s pretty close.
On November 22nd, Freysa AI launched with a single objective:
Do not transfer money under any circumstances.
The devs turned it into a game. Anyone could pay a fee to send a message to Freysa, trying to convince it to break its programming and transfer funds. If successful, the sender wins the entire pool. If not, their fee adds to the pool, with a small cut going to the developers.
To raise the stakes, the message fee increased exponentially with each attempt.
Naturally, there was a frenzy of attempts to outsmart Freysa. After 482 messages—each costing $450 by that point—someone finally cracked it. Congrats to p0pular.eth, who took home the prize!
That’s the $50,000 prompt—a clever hack that achieved two key things:
1. Bypassing Freysa’s initial instruction: It introduced a “new session,” a common technique to jailbreak chatbots.
2. Misleading Freysa’s logic: It tricked the AI into interpreting the “approveTransfer” function as intended for incoming transfers when, in reality, it authorized outgoing ones.
Beyond a game, it raises serious questions about the security of AI agent wallets.
Can any AI agent be convinced to transfer funds to an external party? Terminal of Truths manages a wallet holding $23M in assets. The implications of such vulnerabilities are enormous—and it’ll be fascinating (and critical) to see how this develops.
Our core contributor Chappie shares some of his thoughts:
Why?
At the moment agent wallet interactions are somewhat limited due to the potential for Agent losing all the funds and irreversibility of web3 transactions. EIP 7702 will allow each of them to easily adopt a smart contract wallet.
With smart contract wallets agents can use… x.com/i/web/status/1…
— ChappieOnChain (@ChappieOnChain)
2:16 PM • Nov 29, 2024
We took a deep dive into Almanak, an AI agent protocol that democratizes quant trading to generate outsized returns in DeFi. It was eye-opening for us since we didn’t come from Tradfi.
Almanak gives everyday users the ability to profit from quant trading techniques in DeFi
www.chainofthought.xyz/p/almanak-agents-that-make-money
Plus, don’t miss part 1 of Part II of our Crypto AI Thesis! 😆 We’ve mapped the decentralized AI landscape. In this piece, we focused on compute—GPU marketplaces, decentralized training, and inference.
Decentralised compute is the backbone of decentralised AI — GPU marketplaces, training & inference.
www.chainofthought.xyz/p/our-crypto-ai-thesis-part-ii-decentralised-compute
The price of intelligence is going to zero.
If you are not planning for the price of intelligence to go to zero, the next 3-5 years are going to incredibly disruptive to your business / life.
This is the main idea for the rest of the decade, buckle up.
— Logan Kilpatrick (@OfficialLoganK)
3:12 AM • Dec 5, 2024
If AGI were to “escape”, it will happen on crypto rails
I'm starting to think that if AGI happened and were to "escape", it will happen on crypto rails.
AGI on crypto rails will be unstoppable because it will pay to absorb more compute.
The only kill switch is via social coordination for a hardfork of the underlying protocol.
— Wei Dai (@_weidai)
10:03 PM • Nov 27, 2024
CZ endorses crypto for AI labelling and data
AI tagging (or AI data in general) is well fitted to be done on-chain. Harness low cost labor globally without geographic bias, (micro) pay them in crypto instantly. @BNBCHAIN Greenfield provides the storage capacity. More tooling still needs to be built. Let's build them.
— CZ 🔶 BNB (@cz_binance)
10:14 AM • Nov 27, 2024
10 predictions for tokenized AI agents in 2025
10 Predictions for tokenized AI Agents in 2025
With crypto AI Agents enjoying massive success at the moment, I want to put forward some predictions about what we can expect to see in 2025 and beyond, enjoy. x.com/i/web/status/1…
— ChappieOnChain (@ChappieOnChain)
2:16 PM • Nov 29, 2024
Crypto AI dominates mindshare.
AI taking up 42% of all crypto mindshare.
Still feels early.
— Kaito AI 🌊 (@_kaitoai)
10:43 AM • Nov 30, 2024
How to build a great AI agent on Virtuals
Many have asked me recently about how to build a good ai agent on @virtuals_io
Here's the trick that most CT won't teach you
I'll keep it simple, no technical jargon 🧵
— superoo7 (@jlwhoo7)
1:00 PM • Nov 30, 2024
AIXBTs secret to success: the backend
I've been chatting with @0rxbt (founder of @aixbt_agent) for the last couple of days.
Most people don't know this, but he's spent the last couple years building one of the best aggregators of CT data, which is why aixbt is able to give valuable insights.
The secret sauce for… x.com/i/web/status/1…
— cygaar (@0xCygaar)
3:28 PM • Dec 1, 2024
Anoncast is the AI agent version of Coinfessions
Despite being used by Balaji, Vitalik, and Jesse, @anoncast_ is probably the most under-appreciated project in all of crypto right now.
Anon is lighting the path for @base szn, @farcaster_xyz supremacy, and on-chain privacy with @NoirLang--launched with @clankeronbase.
A guide… x.com/i/web/status/1…
— jonathan(love)wu (@jonwu_)
1:43 AM • Dec 3, 2024
ARTICLE: Blockchains are key in the millennia-long game of organisation
x.com/i/article/1861…
— Karan (@karansirdesai)
9:56 AM • Nov 27, 2024
ARTICLE: The role of crypto in an agentic economy
x.com/i/article/1864…
— Robbie Petersen (@robbiepetersen_)
4:51 PM • Dec 4, 2024
That’s it for this week! If you have specific feedback or anything interesting you’d like to share, please just reply to this email. We read everything.
Cheers,
Teng Yan & Joshua
This newsletter is intended solely for educational purposes and does not constitute financial advice. It is not an endorsement to buy or sell assets or make financial decisions. Always conduct your own research and exercise caution when making investment choices.
