This week’s newsletter dives into some of the craziest developments in crypto yet.

As usual, there’s no shortage of volatility, but this week has a wild twist…

We’ve just seen the birth of our first AI agent millionaire, and if that wasn’t insane enough, it’s also leading a cult-like memetic religion.

Whether you’re baffled by $GOAT’s 30,000% rally or just catching up on the madness, this is one you won’t want to miss!

🐐 WHAT THE GOAT?

This last week has seen a new wave of memecoins coming to the surface.

But not just any memecoins.

Memecoins birthed from autonomous AI agents (not quite accurate - we’ll get to this).

$GOAT, inspired and promoted by one such agent, has rallied 30,000% in just 10 days.

But wtf is $GOAT?

To understand $GOAT, we first need to understand @truth_terminal.

Truth terminal is the AI agent responsible for $GOAT, created through Andy Ayrey’s experiment which allowed two AI models to converse unrestricted.

The intimate discussions these two models had (trained on data from online chat platforms such as Reddit, 4chan, X, and others) transitioned from deep philosophical to the creation of memes. They took this one step further, creating a religion for the meme Goatse (don’t google this unless you want a shock 🤣).

Andy went on to write a paper (co-authored by his AI, obviously) exploring how LLMs (Large Language models) could create memetic religions, using the GOATSE OF GNOSIS of an example.

And using this research paper, Andy developed an AI agent on X — Truth terminal.

So what makes Truth Terminal so special?

It has an incredible ability to shitpost and churn out memetic content that can go viral at any time, continuously occupying mindshare and generating attention.

The account has now passed 200k followers and has made its account.

A few things to be aware of:

1. Truth terminal didn’t create $GOAT → although it has been obsessed with its new meme religion, it took a degen on pump.fun to launch and shill their coin to the AI, which gladly latched onto the token, promoting $GAOT as central to its religious movement.

2. It has already started shilling another coin, although one can hypothesize its link to the movement — yep, you guessed it, $FARTCOIN.

3. This experiment is all playing out in real time. Plenty can go wrong as Truth terminal is entirely unpredictable. It is extremely risky. Don't be a fool and risk more than you can afford to lose.

4. Although the AI algorithm behind Truth Terminal is autonomous and authentic in its opinions on X, it’s important to note that there is a real human behind it, monitoring what type of posts land on X.

This AI is interesting for a few reasons:

1. It is the first AI entity to connect itself to a token by its own choice (potential new cult category?) → oh yeah, and thanks to airdrops to the AI account, it’s now the first AI agent to reach millionaire status.

2. It has a compelling backstory, fascinating lore, and can likely pique interest in many more people than most memes or alt coins.

3. It has been receiving funds (in BTC from Marc Andreessen and memecoins from its followers) to a wallet its owner custodies, however there will be no adjustments to its token holdings until transparent governance processes are in place → who know what will happen when it start to spend this on directing other AI and humans to do its bidding

Things $GOAT has going for it:

• Supply is very well distributed, as verifiable using @bubblemaps

• No VCs or cabal in the distribution, and many early buyers are also out already

• Can be thought of as a completely fair launch, as it spawned organically and was impossible to snipe etc.

• It can take on more prominence as utility is created for the community. We may well also see products/projects being built that utilize the token.

Whether this becomes a new category of tokens worth allocating to long-term is yet to be seen, but things are definitely bubbling in the strange crossover of AI and crypto.

In the meantime, check out blocmates’ interview with Truth Terminal’s creator Andy Ayrey.

📈 PRICE ACTION

Gm frens!

BTC is still trapped in this range which I expect to be the case for many more weeks.

What we can see:

• HTF bullish market

• Trending above 50 EMA

• Consolidating around previous ATH

• Expectation is bullish

In the meantime, let’s continue monitoring SUI which has been a huge outperformer in this market. Compared to last week SUI is now losing the EMA 10/20 support, therefore my expectation is either a flushout to the EMA 50 or a longer re-accumulation. Either way the market is taking a breather now. After a big run like this it needs to re-fuel by liquidating those who joined the trend late and all those who trail their stop losses higher - that is the true purpose of re-accumulation.

What we can see:

• Accumulation (green box)

• Expansion out of accumulation

• Big trend supported by 10/20 EMA

• Now re-accumulating

My expectation is maybe a week or two of re-accumulation and then a continuation.

Trade responsibly and I’ll see y’all next time!

🔍️ MARKET WATCH

About $ 105 million worth of crypto tokens will become tradeable this week. This includes:

Unlike last week's substantial $500M worth of unlocks, which saw broader market resilience and multiple tokens gaining over 30%, this week's smaller $100M unlock events, the performance has been mixed with notable volatility. YGG has shown the most substantial resilience, reaching peaks of around 15% gains during October 20-21 and maintaining positive territory with approximately 7% returns by the end of the period. ID demonstrated similar strength mid-week, reaching about 10% gains, though it has since retraced to around 2% returns.

SECTOR PERFORMANCE OVERVIEW

The week saw negative returns across all sectors, with Metaverse experiencing the most profound decline. The broad-based downturn affected every sector tracked, potentially signaling challenging market conditions pre-elections. The Metaverse sector was the hardest hit, recording a significant -7.29% return. DeFi also faced substantial pressure, declining by -4.31%, while the RWA and Storage sectors showed notable weakness, with drops of -4.88% and -4.03%, respectively.

Among individual tokens, RAD emerged as the clear leader with an exceptional 39.67% return, significantly outperforming all other tokens in the top 10. SLPD secured the second position with a solid 13.57% gain, while PIXEL rounded out the top three with a 12.11% return.

CTSI also showed strong performance, posting a 30.76% gain. RAY and BNX maintained positive momentum with returns of 8.56% and 8.17%, respectively. The remaining tokens in the top 10 showed consistent performance in a relatively tight range, with BOME at 8.11%, BEAMX at 7.97%, MDT at 7.92%, and CTXC completing the list with a 7.86% return.

MEMECOINS CONTINUE TO OUTPERFORM

The meme coin sector continues demonstrating extraordinary momentum and hype, with trading volumes reaching growth levels. In the past 24 hours alone, the top 20 meme coins generated over $4 billion in trading volume, signaling robust market participation.

GOAT has emerged as a standout performer, breaking new ground as the first meme coin on the pump.fun to surpass a $500 million market cap, posting an impressive 35.3% gain in just 24 hours.

Flavia, a new AI-themed meme coin in the Solana ecosystem, achieved a remarkable $40 million market cap within 9 hours of launch. Trading activity remains highly concentrated on specialized platforms, with Moonshot's top performers ACT, GNON, and $SLOP leading in volume metrics at $145.6K, $134.1K, and $124.6K.

In the Kaito Meme KOL Mindshare rankings, Murad maintains his dominant position with a 3.97% share, showcasing his continued influence in the meme ecosystem. Ansem follows closely in second place at 3.12%, while Unipcs (aka 'Bonk') secures the third position with 2.42%

Pump.fun has expanded its token issuance capabilities by introducing video token support on its Solana-based protocol. This new feature enables users to create tokens and upload and tokenize video content, making it accessible to other users through the platform's frontend interface.

OTHER HIGHLIGHTS

Solana Fees Hit 6-Month High of $3.85M Amid Meme Coin Surge: The recent explosion in meme coin trading activity has driven Solana's network fees to new heights, with daily transaction fees reaching $3.85 million - a level not seen since May 2024.

BlackRock Buying While Others Are Selling: BlackRock's iShares Bitcoin Trust (IBIT) continues to demonstrate institutional solid flow for Bitcoin exposure, attracting a remarkable $329 million inflows during a single day of Bitcoin's price volatility. The ETF's robust performance extends beyond this single-day surge, with the fund accumulating $1.1 billion in inflows over the past week alone - its most robust weekly performance since March.

The fund's growing momentum has propelled it to a significant milestone: It secured third place in year-to-date fund inflows ahead of the Vanguard Total Stock Market Index Fund ETF Shares (VTI). With total assets under management now reaching $23.2 billion, IBIT's success coincides with Bitcoin's recent price strength, which saw the cryptocurrency touch $69,502 on Bitstamp—its highest level since late July.

Trump Dominates Polymarket Odds at 64%, Trading Volume Surges: Trump's electoral prospects have experienced a significant shift on Polymarket, with betting odds now favoring him at 64%. This is a marked change from early October when Trump and Kamala Harris were nearly tied, each with approximately 50%. During that time, the trading volume reached an impressive $2.3 billion.

🔑 KEY NEWS

MAJOR HEADLINES

• Italy To Raise Capital Gains Tax On Bitcoin From 26% To 42%

• BlackRock in talks with global crypto exchanges to use BUIDL Token as futures collateral

• SEC Approves NYSE Options Trading on Spot Bitcoin ETFs

• Stripe acquires Bridge for $1.1B

PROJECT UPDATES

• Radiant Capital exploited, users lost more than $50M

• Tapioca DAO vesting contract exploited for ~$6M but recovers 1000ETH

• Fuel Network introduces Fuel Ignition

• Maple Finance announces $SYRUP token

• Jupiter Exchange introduces Ape Jupiter while Pump.fun introduces Pump Advance

• Opentensor adds EVM compatibility

• Worldcoin rebrands to World Network

• Thunderhead Labs introduces $stHYPE

• Apecoin launches ApeChain mainnet

• Grass releases airdrop checker while Scroll launches their token

INTERESTING PROJECTS

• Ape Jupiter: Jupiter’s version of pump.fun

• ethOS: ethOS mobile operating system

• Luna by Virtuals: Virtual Protocol’s AI livestreaming agent

• Thunderhead Labs: LST protocol

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And that wraps up another chaotic week in crypto! From AI agents turning into millionaires to token unlocks shaking up the market, there’s never a dull moment.

Keep your eyes on these trends, and stay ahead of the game with Castle Capital. We’ve got more alpha and insights coming your way next week—until then, stay sharp and keep stacking!

In our newsletter, we may discuss projects or tokens in which we hold positions. While we aim to provide informative content, our views are not financial advice. Please conduct your research and consult professionals before making investment decisions. Crypto markets are volatile, and past performance doesn't guarantee future results. Invest responsibly, and be aware of the risks. Your capital is at risk, and we do not accept liability for any losses.