Surviving the AI Coin Frenzy: A Quick Guide to Spotting Winners

The question is, how do you separate the winners from the garbage? After two months of diving into the AI coin market, I’ve honed a 30-minute research strategy to help you navigate this crowded and often treacherous space.

Here’s how to level up your coin-sifting game.

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The State of the AI Meta

AI coins have been trending for almost three months, and while the market is buzzing, the landscape is increasingly cluttered with scams and low-effort projects. 

Gone are the days of easy gains. If you’re serious about investing, you need to back up your moves with research. 

While no method is foolproof, these steps can shield you from 80% of the rug pulls and farm tokens that plague the sector.

The GitHub Litmus Test

Start by tracking down the project’s GitHub repository. If the website or Telegram group doesn’t link to one, that’s your first red flag. 

Legitimate AI projects often use GitHub as a hub for their code and development logs.

What to Look For:

• Commit Messages: Are they clear and indicative of ongoing work, or do they look like placeholders?

• Code Volume: Does the repository have substantial files containing actual code, or is it suspiciously empty?

• Branches and Tags: Multiple active branches and meaningful tags suggest a project with real development activity.

• Integration: Check if GitHub activity aligns with the project’s token or platform claims.

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AI Agents: Scrutinizing the Backbone

AI agents are the engines powering these projects. They must have terminal logs or audit logs to track performance. 

Take a closer look at the timestamps on these logs and compare them to the team’s social media posts.

Key Indicators:

1. Log Timing: Timestamps should align with the project’s Twitter activity.

2. Post Frequency: Consistently high-quality, frequent posts suggest automation — but not necessarily authenticity. Compare this with the logs to verify claims.

Social Media Sleuthing

Social channels are treasure troves of insights — if you know where to look. Here’s what to check:

• Twitter (X): Look for the account’s creation date, tweet quality, and follower count. Are the tweets coherent, engaging, and relevant?

• Developers: Are the devs doxxed? Known on Crypto Twitter (CT)? Do they share followers with reputable influencers?

• Website: A polished site shows effort. Does it look like the team invested more than $100 and an hour’s work?

The Influence Ecosystem

Search the token’s ticker on Twitter to gauge community sentiment. Who’s promoting it? Are influencers with strong reputations involved? Pay attention to feedback from CT.

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Token Distribution: Follow the Money

Tokenomics can reveal a lot about a project’s integrity. Examine the distribution and holder patterns.

Warning Signs:

• Empty Wallets: If many top 100 holders’ wallets are empty, the project could be a pump-and-dump scheme.

• Concentration: No single wallet in the top 10 should hold more than 3–5% of the supply, ideally 0%.

• Overall Holdings: The top 10 wallets holding over 12–17% of the supply is another red flag.

• Clusters: Use tools like Bubblemaps to spot suspiciously large wallet clusters.

Verify the Stats

Numbers don’t always tell the truth. Ensure the metrics you see aren’t inflated.

Common Pitfalls:

• Fake Volume: High trading volume with minimal social media buzz usually means fake activity.

• Dexscreener Boosts: Projects with over 1,000 boosts are rarely organic and often short-lived.

Researching an AI coin doesn’t need to take hours, but skipping due diligence can cost you dearly. 

By following these steps, you’ll be better equipped to dodge scams and identify coins with real potential. Remember, in a market this volatile, a little research goes a long way. Happy trading!

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