Solana X AI Ambition! Hackathon Sparks AI Agent Token Issuance Craze, Speculative Risks Trigger Follow

The Solana AI hackathon supported by Yash Agarwal, the founder of SendAI, has launched with a grand goal: to make Solana the leading blockchain in the field of artificial intelligence (AI) and achieve a tenfold rise in the scale of the ecosystem. This event aims to bring together developers and innovators to promote the rapid development of the Crypto x AI field, with a special focus on AI-driven intelligent agent technology.

In just 15 days, the hackathon has attracted over 400 project submissions, demonstrating tremendous creativity and innovation potential. Agarwal said that these activities have the potential to bring a rise of $500 million to $1 billion to Solana’s market value. However, although this activity clearly promotes the expansion of the Solana AI ecosystem, it has also triggered unexpected consequences and become a hotbed for token speculation in the market.

AI agent token issuance has become the focus of the event

Originally used as a platform for inspiring innovation, it has gradually evolved into a so-called “AI token discovery platform.” According to Agarwal, the official website of the hackathon attracted more than 40,000 visitors in a week, and many participating projects began to issue tokens. The total market value of these tokens has exceeded $500 million. On average, two to three new tokens are issued every day, with market values ranging from $5 million to $50 million.

Although the token issuance model is simple, it is highly speculative.

Submit the project to the hackathon for visibility

Use the brand effect of the hackathon to enhance credibility

Issuing tokens to attract cryptocurrency whales and key opinion leaders (KOLs)

Attract retail investors to enter, forming a speculative cycle, investors expect high returns

While this process helps some builders raise funds, it also turns activities into highly speculative arenas, diluting attention to real innovation.

Warning of the risks of speculation and excessive tokenization

With the rapid rise of tokens issued in the Crypto x AI field, sustainability issues are becoming increasingly concerning. Many of these tokens are criticized for being similar to meme coins, with little practical use or long-term value. This situation makes builders more inclined to pursue short-term profits from market speculation rather than focusing on long-term product development.

Agarwal pointed out that the token prices of some projects have experienced a sharp rise before the product is actually launched. Many projects maintain market enthusiasm through announcements, demos, or conceptual displays, but the products often lack scalability or practical application scenarios.

The situation is further exacerbated by the whales and KOLs in the cryptocurrency market. They usually obtain tokens in advance, drive up prices through market narratives, and then sell for profit after retail investors enter the market, ultimately leaving ordinary investors with significant losses.

Suggestions for builders: There is huge pressure on market value management, and we should focus on the long term.

In this highly speculative market environment, Agarwal gives sincere advice to builders. He emphasizes that managing tokens brings enormous emotional and operational burdens, especially during market corrections. When builders’ holdings in project tokens fall below 5%, they often lose the motivation to continue investing after the market enthusiasm fades away.

He suggests that builders focus on sustainable development and only consider token issuance when they have clear long-term goals. Proper financial management and team allocation are crucial to ensure that builders benefit from their own efforts, rather than being controlled by speculators.

Agarwal suggests that builders should ask themselves a question before issuing tokens: “Even if the market value of the tokens falls below $500,000, will I continue to develop this project?” If the answer is no, it is best to delay or avoid issuing tokens.

Appeal to speculators and influencers

The frenzy of tokens has also brought more attention to KOLs and influencers. Although they play an important role in promoting projects, their participation in short-term token speculation has been criticized. Agarwal calls on these opinion leaders to be more responsible and avoid promoting purely speculative projects in pursuit of fame or financial gain.

For retail investors, he also offered simple advice: do not invest in projects you do not understand, even if they appear to have high potential returns. In such a volatile market, blindly following KOL recommendations can lead to significant losses.

Hackathon takes measures to respond to ‘speculation’ challenges

To address the rising speculation problem, the hackathon organizers have taken measures to maintain the integrity of the event. For example, the traditional Demo Day has been canceled and the results are announced directly through official channels to reduce speculative behavior. This decision demonstrates the organizers’ commitment to fairness and transparency.

Despite the challenges, the hackathon has achieved significant success in promoting the Solana AI ecosystem. Projects such as SendAI and Solana Agent Kit, launched during the event, demonstrate the rapid innovation potential of the ecosystem.

Looking ahead: towards a $100 billion industry

Despite the current token frenzy exposing issues with the capital structure, the vast potential of the Crypto x AI field remains undeniable. Agarwal and his team are confident about the future, envisioning this field to drive blockchain innovation and ultimately become an industry with a scale of 100 billion dollars.

For builders and investors, the conclusion is clear: the AI ​​boom is indeed full of opportunities, but real success must be built on long-term value creation, not short-term speculation. As the Solana AI ecosystem further develops, maintaining integrity and focusing on innovation will be key to its growth.

This article Solana x AI ambition! Hackathon triggers AI agent token issuance frenzy, speculation risk arouses attention first appeared on Chain News ABMedia.