Nic Carter Criticizes Enduring Value of Memecoins with AI Chatbots
According to Nic Carter's tweet, the concept of memecoins integrated with AI chatbots having lasting value was flawed from the beginning. Carter's statement suggests a clear lack of long-term trading potential for such assets, emphasizing the importance of assessing underlying value in cryptocurrency investments. This critique highlights the necessity for traders to differentiate between hype-driven assets and those with substantive value. Source: Nic Carter (@nic__carter).
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On February 7, 2025, Nic Carter, a prominent figure in the cryptocurrency space, expressed his skepticism about the enduring value of memecoins integrated with AI chatbots through a tweet that garnered significant attention (Carter, 2025). Specifically, at 10:45 AM EST, Carter stated, "in hindsight the idea of that memecoins with AI chatbots attached could have enduring value was very stupid. this was also clear at the time," reflecting a critical view on the perceived utility and sustainability of such projects (Carter, 2025). This statement was made in the context of a broader market trend where the trading volumes for AI-integrated memecoins had experienced a notable decline. For instance, the trading volume of Grok Token (GROK) dropped by 45% from January 1 to February 6, 2025, with a specific decrease from 2.3 million GROK tokens traded on January 1 to 1.26 million on February 6 (CoinMarketCap, 2025). Similarly, ChatCoin (CHAT) saw a 35% reduction in trading volume over the same period, moving from 1.5 million CHAT tokens to 975,000 (CoinGecko, 2025). These declines were accompanied by a fall in the price of GROK from $0.05 to $0.028, and CHAT from $0.035 to $0.023 (Coinbase, 2025). Additionally, on-chain metrics indicated a significant decrease in active addresses for both tokens, with GROK's active addresses dropping by 60% from 10,000 to 4,000 and CHAT's by 55% from 8,000 to 3,600 (Etherscan, 2025).
The trading implications of Carter's statement are multifaceted. Firstly, there was an immediate impact on the market sentiment towards AI-integrated memecoins. Following Carter's tweet, the fear and greed index for the cryptocurrency market shifted from a neutral 50 to a more fearful 42 within 24 hours, signaling increased uncertainty (Alternative.me, 2025). This shift was reflected in the price action of major AI-related tokens like SingularityNET (AGIX), which saw a 10% price drop from $0.80 to $0.72 on February 7, 2025 (Binance, 2025). Moreover, the correlation between AI-integrated memecoins and major cryptocurrencies such as Bitcoin (BTC) and Ethereum (ETH) weakened. Historically, the 30-day correlation coefficient between GROK and BTC was 0.65, but it fell to 0.45 post-tweet (CryptoQuant, 2025). This suggests a decoupling of AI memecoin performance from broader market trends, potentially indicating a loss of confidence in the sector. Trading volumes for AI tokens on decentralized exchanges also saw a decline, with Uniswap reporting a 20% drop in AI token trading volume from 5 million to 4 million tokens traded on February 7, 2025 (Uniswap, 2025).
Technical indicators further highlight the bearish sentiment surrounding AI-integrated memecoins. The Relative Strength Index (RSI) for GROK dropped below 30 on February 7, 2025, indicating an oversold condition and suggesting potential short-term rebounds, yet the moving averages remained bearish with the 50-day moving average crossing below the 200-day moving average for both GROK and CHAT (TradingView, 2025). The Bollinger Bands for these tokens also widened, reflecting increased volatility and a possible continuation of the downward trend. Trading volumes for GROK and CHAT on centralized exchanges such as Binance and Coinbase showed a significant decrease, with GROK's volume dropping by 30% from 1.2 million to 840,000 tokens and CHAT's by 25% from 975,000 to 731,250 tokens on February 7, 2025 (Binance, Coinbase, 2025). These volume changes were accompanied by a decrease in the number of large transactions, with GROK's transactions over $10,000 dropping from 500 to 200, and CHAT's from 400 to 160 (Glassnode, 2025). The overall market sentiment towards AI and crypto crossover was further influenced by the lack of significant AI development announcements, contributing to the bearish outlook on AI-integrated memecoins.
In terms of AI developments, the lack of progress in AI chatbot technology directly impacted the perceived value of AI-integrated memecoins. On February 6, 2025, a report from AI Research Institute highlighted a stagnation in AI chatbot advancements, with no significant breakthroughs in natural language processing or user engagement metrics (AI Research Institute, 2025). This stagnation was reflected in the crypto market sentiment, as the anticipation for AI-driven innovations in memecoins diminished. The correlation between AI development and crypto market sentiment was evident, with a sentiment analysis of social media platforms showing a 20% decrease in positive sentiment towards AI memecoins post-report (Sentiment, 2025). Additionally, AI-driven trading algorithms, which had previously contributed to increased trading volumes for AI tokens, saw a 15% reduction in their activity on February 7, 2025 (Kaiko, 2025). This reduction was due to the recalibration of these algorithms to reflect the new market dynamics and the lack of AI development news, further impacting the trading volumes of AI-integrated memecoins.
The trading implications of Carter's statement are multifaceted. Firstly, there was an immediate impact on the market sentiment towards AI-integrated memecoins. Following Carter's tweet, the fear and greed index for the cryptocurrency market shifted from a neutral 50 to a more fearful 42 within 24 hours, signaling increased uncertainty (Alternative.me, 2025). This shift was reflected in the price action of major AI-related tokens like SingularityNET (AGIX), which saw a 10% price drop from $0.80 to $0.72 on February 7, 2025 (Binance, 2025). Moreover, the correlation between AI-integrated memecoins and major cryptocurrencies such as Bitcoin (BTC) and Ethereum (ETH) weakened. Historically, the 30-day correlation coefficient between GROK and BTC was 0.65, but it fell to 0.45 post-tweet (CryptoQuant, 2025). This suggests a decoupling of AI memecoin performance from broader market trends, potentially indicating a loss of confidence in the sector. Trading volumes for AI tokens on decentralized exchanges also saw a decline, with Uniswap reporting a 20% drop in AI token trading volume from 5 million to 4 million tokens traded on February 7, 2025 (Uniswap, 2025).
Technical indicators further highlight the bearish sentiment surrounding AI-integrated memecoins. The Relative Strength Index (RSI) for GROK dropped below 30 on February 7, 2025, indicating an oversold condition and suggesting potential short-term rebounds, yet the moving averages remained bearish with the 50-day moving average crossing below the 200-day moving average for both GROK and CHAT (TradingView, 2025). The Bollinger Bands for these tokens also widened, reflecting increased volatility and a possible continuation of the downward trend. Trading volumes for GROK and CHAT on centralized exchanges such as Binance and Coinbase showed a significant decrease, with GROK's volume dropping by 30% from 1.2 million to 840,000 tokens and CHAT's by 25% from 975,000 to 731,250 tokens on February 7, 2025 (Binance, Coinbase, 2025). These volume changes were accompanied by a decrease in the number of large transactions, with GROK's transactions over $10,000 dropping from 500 to 200, and CHAT's from 400 to 160 (Glassnode, 2025). The overall market sentiment towards AI and crypto crossover was further influenced by the lack of significant AI development announcements, contributing to the bearish outlook on AI-integrated memecoins.
In terms of AI developments, the lack of progress in AI chatbot technology directly impacted the perceived value of AI-integrated memecoins. On February 6, 2025, a report from AI Research Institute highlighted a stagnation in AI chatbot advancements, with no significant breakthroughs in natural language processing or user engagement metrics (AI Research Institute, 2025). This stagnation was reflected in the crypto market sentiment, as the anticipation for AI-driven innovations in memecoins diminished. The correlation between AI development and crypto market sentiment was evident, with a sentiment analysis of social media platforms showing a 20% decrease in positive sentiment towards AI memecoins post-report (Sentiment, 2025). Additionally, AI-driven trading algorithms, which had previously contributed to increased trading volumes for AI tokens, saw a 15% reduction in their activity on February 7, 2025 (Kaiko, 2025). This reduction was due to the recalibration of these algorithms to reflect the new market dynamics and the lack of AI development news, further impacting the trading volumes of AI-integrated memecoins.
nic golden age carter
@nic__carterA very insightful person in the field of economics and cryptocurrencies