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AI Crypto Crash: $100M Wiped Out in 24 Hours

Coin WorldTuesday, Jan 28, 2025 1:01 pm ET

1min read

AI-related cryptocurrencies have experienced a significant sell-off in recent days, with many tokens losing substantial value. This decline can be attributed to excessive enthusiasm and speculation in the market, leading to a correction in prices.

The sell-off was particularly evident in AI crypto coins, with many tokens experiencing significant losses. For instance, AI Agents-associated coins lost 12.1% in 24 hours, while AI memes were down by 10%, with $100 million erased in the same period. Additionally, Bittensor (TAO), a long-running AI infrastructure project, saw its TAO token lose 2% in 24 hours.

The panic in the AI cryptocurrencies market was fueled by the recession in AI stocks, which was catalyzed by the announcements of DeepSeek, a ChatGPT analogue that allegedly works 30x more cost-efficient. Yesterday, NVIDIA stocks lost $600 billion in 24 hours, touching their lowest level since early October 2024.

Rumors on Crypto Twitter suggested that DeepSeek was associated with Bittensor, but these claims were later debunked. The myth was busted after a screenshot from a Chinese newspaper started circulating, but it was proven to be false.

The sell-off in AI-related cryptocurrencies is a product of too much excitement and speculation in the market. As the hype around AI continues to grow, investors and traders should exercise caution and conduct thorough research before making any investment decisions. The financial and market information provided in this article is intended for informational purposes only, and U.Today is not liable for any financial losses incurred while trading cryptocurrencies.

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