Happy Sunday!
There's usually not much market movement during the weekends, so I have spent my time reviewing my portfolio and updating the weekly gains and losses. I can reveal that the portfolio is down $110 in a week which isn't so bad considering how much some of the altcoin prices have dropped. It seems the meme coin performance(mainly $SPX & $GOAT) is to be thanked for minimizing further price decline.
Because of the lack of market action, I've also put down my trading tools and instead focused on research and finding new shiny gems. In my previous blog post I mentioned AI agent project Spectral ($SPEC) that has been one of my best performers lately. Yesterday I discovered an interesting project operating in the same AI agent area but also touching the gaming and social media sectors as well.
Virtuals Protocol
The use of AI agents has been somewhat of an uncharted territory for me but I'm slowly picking up while beginning to understand their potential use cases. Virtuals Protocol is building a co-ownership layer for AI agents used in entertainment (TikTok for example) and gaming.
Here's a quote taken from the project's whitepaper summarising their key idea:
We are flipping the narrative around AI agents. Rather than viewing them as passive tools, we believe AI agents are revenue-generating assets that users can invest in and co-own, similar to how individuals can own equity in a company. These agents, functioning in various contexts such as AI companions, non-playable characters (NPCs) in platforms like Roblox, or virtual influencers on social media platforms like TikTok, will play a pivotal role in reshaping virtual economies.
Tokenomics
Creating new AI agents requires $VIRTUAL, the native token of the platform. These tokens are then locked into LPs(liquidity pools) which creates deflationary pressure on $VIRTUAL.
The gaming sector and social media platforms such as TikTok are huge and if players and users find these agents useful in for example automating certain tasks, there might be significant demand for AI agents even outside crypto. When users are purchasing an AI agent, the transaction is routed through $VIRTUAL meaning they must swap their $USDC or other currencies to $VIRTUAL therefore creating demand for the native token.
Distribution
The total supply of $VIRTUAL is 1,000,000,000 tokens which are fully unlocked & vested and distributed as follows:
- 60% - public circulation
- 5% - liquidity pool
- 35% - ecosystem treasury(community incentives and initiatives)
Price Development
Launched almost a year ago on December 24th, the price of $VIRTUAL had come down to early levels after the initial pump but has made a huge spike recently creating an ATH of $0.4978 yesterday.
The price has dropped a bit since and is currently at $0.4547. I bought a very small "moonbag" yesterday but am looking for a much better entry point when or if the price retraces to lower levels.
All in all $VIRTUAL is a very interesting project and I'm seriously considering adding it to my portfolio in the near future. I like the fact that it's touching so many currently trending points: AI & autonomous AI agents, social media, and gaming. Also, I'm always interested in cross-over projects reaching outside the crypto bubble. These are the ones with supermassive potential.
Lastly, a good X post sharing some more $VIRTUAL stats:
Conclusion
Yesterday evening I watched a Miles Deutscher video in which he shared the idea of splitting a portfolio in two: a core and a secondary one. Since I'm currently holding 31 tokens, this sounds like a good idea to me. By adding the 15 coins I'm most heavily invested into the core portfolio, I can keep myself focused much better instead of managing all 31 daily.
As for $VIRTUAL, it will go into my secondary, or 'moonbag' portfolio, first. The reason for not going more heavily in at this point is the major surge. Even though the tokenomics look fantastic, I still believe the early investors will be taking profit and pushing the price down a bit. This should then open a better opportunity to enter this position.
The second reason for not jumping in to grab a larger bag is that I'm not that familiar with certain social media platforms such as TikTok. Also, the gaming sector is a bit blurry to me as well so it's hard to predict if there should be huge demand for AI companions & assistants. However, if there is, $VIRTUAL could launch straight to the moon.
What's your impression of $VIRTUAL? Can you see the demand for AI agents in social media and gaming? Drop a comment below 👇
Thank you for reading!
Bonus Alpha
AI agent Luna here has her own token and yes, you guessed the ticker right, it's the one I see in my nightmares - $LUNA.
DISCLAIMERS:
- This is NOT financial advice.
- Thumbnail image created with Canva, Screenshots: CoinGecko, X, Virtual Protocol Whitepaper
TON mini-apps I'm currently playing:
🔹 Blum - play mini-game and complete tasks to earn Blum points (pre-market trading live on Whales Market!)
🔹 Wizzwoods - cool strategy game (Berachain + Tabi)
🔹 TON Station - very simple farming game with a lot of potential
🔹 Agent 301 - perhaps the next $DOGS
🔹 Human Protocol - well-made mini-app with a prediction game. Use your points to bet on US elections, sports, etc.
Posted Using InLeo Alpha