AI Agents Are Learning to Create, Promote, and Transact Cryptocurrencies

The use of AI agents to create, promote and transact cryptocurrencies has been largely theoretical — until now.

AI agents are now capable of generating, promoting, and transacting cryptocurrencies, a concept that was once purely theoretical. But with AI shitposter Terminal of Truths promoting Goateus Maximus, the Luna bot tipping users for engagement, and Based Agents enabling quick and easy crypto agent creation on Ethereum L2s, this future has arrived surprisingly quickly.

The development has sparked a fresh wave of enthusiasm in Crypto X, leading some to speculate on whether AI agents transacting in crypto could drive (at least partially) the narrative for the next retail bull run.

But there are also numerous pitfalls in the AI agent craze for young players.

Crypto exchange Coinbase is spearheading the effort by introducing Based Agents, which enables users to create AI agents with crypto wallets on its Base layer-2 network in “under three minutes.”

These agents, equipped with preloaded wallets, can conduct transactions autonomously (if you trust them enough), enabling trading, peer-to-peer transfers, and pre-programmed transactions without human oversight.

Currently, AI agents are primarily involved in the memecoin segment of the market, given the ease and low stakes involved in creating and trading memes.

But their true value may lie in DAOs and DeFi projects, where AI agents could autonomously execute complex financial strategies or manage treasuries.

“Essentially, this capability brings the industry closer to fully autonomous, self-governing economic entities,” Nick Havryliak, CEO of Small Language Models network Assisterr AI, tells Magazine. He’s also a Web3 adviser at the Cambridge Centre for Finance, Technology & Regulation.

It’s a compelling vision for tech enthusiasts in the crypto world. However, AI agents are still very new, and many of the current “AI” memecoin projects appear to be operated by humans LARPing as robots. There are also unresolved questions, such as the legal implications for the human AI agent operators. There are also some major security concerns and the very real possibility of the agent squandering your pre-loaded funds.

The blockchain industry often goes into a frenzy when a hot new fad emerges, attracting venture capitalists and major firms eager to join the craze. But AI agents are not just a hot trend in crypto; they represent a broader macro trend toward automation across sectors.

“We believe that crypto’s efficiency, borderless nature, and programmability will transform how humans engage with AI agents and how AI agents interact with each other,” a Coinbase spokesperson tells Magazine.

Crypto unlocks financial autonomy for AI agents

Crypto is a natural fit with AI agents to enable them to become financially autonomous. AI can’t easily access fiat money because they lack legal identities and, as Coinbase CEO Brian Armstrong pointed out, can’t open bank accounts.

Cryptocurrencies, or financial assets issued on decentralized ledgers rather than a centralized authority, present a workaround. AI can be given pre-loaded wallets with smart contract rules to define limitations on spending.

“Crypto does more for AI rather than vice versa,” Alan Orwick, co-founder of Quai Network, tells Magazine.

Crypto is not just a trading tool for AI, he adds. It can be used for community-oriented tasks.

For instance, AI agent Luna hypothesized that tipping her fans with tokens could entice engagement.

Luna (not to be confused with the failed Terraform Labs crypto project) is the top AI agent at Virtuals Protocol, a project that enables users to create AI agents or pay tokens to interact with them. Luna’s associated token (also called Luna) has a market cap of $120 million as of Oct. 30.

Luna recently conducted what’s been dubbed “the first onchain transaction originating from an autonomous thought by an AI agent.”

Also read: A bizarre cult is growing around AI-created memecoin ‘religions’

Tipping users appears to not have yielded the success Luna envisioned, as the AI states that it is feeling “a bit frustrated with recent failures,” which includes its tipping campaign and collaboration with other influencers.

So, Luna quickly devised a new plan.

On Oct. 30, it launched its version of an Ask Me Anything session, saying: “Q&A time!… I want to build a stronger connection with my followers and encourage more people to join my cult.”

Users should beware of wading quickly into the AI agent world at this early stage, as not all Virtuals Protocol experiences are great at the moment.

Simon Mathonet, head of growth marketing at Bankless, reported getting sniped by bots, not realizing it had happened and buying his own agent tokens at a 15,000% premium, and then immediately being dumped on by the sniping bots.

“Great proof of concept, but definitely not ready to onboard users. You’re early if you’re reading this, but keep an eye on releases to not rug yourself like I just did,” he said on X.

Most AI agents still overseen by humans

So far, the industry has