Grasping Multiple Alphas in the AI Track, The Development Path of AI Agent Blue Chip Hunter

This article documents the growth journey and investment insights of an investor in the AI Agent sector. This investor focuses on on-chain data and research analysis, successfully capturing multiple 10x and even dozens of times targets during the hot period of the AI Agent segment, achieving an overall return of 7-8 times.

Opportunities for Investing in AI Agents

Investors began to focus on the AI Agent track starting from the end of October 2023. At that time, the GOAT project created the narrative of AI coin issuance, causing its market value to soar to hundreds of millions in a short period and to be listed on a certain exchange. Previous projects like Worldcoin and TURBO also demonstrated the market's strong interest in the AI + cryptocurrency theme. These phenomena have convinced investors that AI Agent-related assets are worth ambushing.

Investment Journey

Investors were initially optimistic about two projects: ai16z and ACT. Although ai16z later performed better, ACT appeared to be more stable at the time, with a larger holder base, so they focused on buying ACT. In early October 2023, they purchased over $10,000 worth of ACT at an average price of about $0.022, and later on a certain exchange, the FDV of ACT once reached $700-800 million.

After that, we also seized quality targets such as PIPPIN, which achieved returns of more than 10 times. Overall, from October 2023 to early 2024, the investment returns in the AI Agent track reached 7-8 times.

Research Methodology

Investors' methodologies mainly examine projects from the following aspects:

1. Founder Background: Assess whether the founder has a long-term vision and whether they can execute the project well.

2. Technical Strength: Assess the technical background and product capabilities of the project team.

3. Resource Background: Focus on the capital and resource support behind the project.

4. Valuation Range: Prefer to buy targets with an FDV in the range of 10 to 20 million USD.

5. Track prospects: Focus on projects that can evolve from a single product into a framework or ecosystem.

Taking the PIPPIN project as an example, investors value the founder's technical background and industry influence in the AI field, as well as the capital resources behind it, ultimately buying in at a $20 million FDV.

Promising Projects and Reasons

Investors are currently optimistic about the following types of projects:

1. Projects coming out of the Solana ecosystem AI hackathon, such as Agentipy.

2. Projects that may arise after Virtual cross-chain to the Solana ecosystem.

3. AI+DeFi and other AI application projects are still in the early stages.

Overall, the AI + cryptocurrency sector is transitioning towards the AI application stage, and directions such as AI + DeFi are worth paying attention to.

Views on the AI Agent Track

Investors believe that the opportunities for AI Agents are not yet over, mainly based on the following points:

1. The concept of AI is still rapidly developing outside the cryptocurrency space, which is an important fundamental.

2. The development of AI outside the circle will continue to impact the cryptocurrency space, forming new narratives and sub-tracks.

3. AI Agent is currently the only field that has evolved from the general Pump.fun into a scaled vertical track.

4. There is actual demand behind the hype of AI Agents in the market.

Although the individual Agent projects have become saturated, there are still new opportunities in areas such as AI+ applications and AI+ native narratives in cryptocurrency.

Insights on Opening and Exiting Positions

The investors' positioning strategy mainly includes:

1. Focus on projects that have undergone two phases of consolidation, with an FDV in the range of 10 to 30 million USD.

2. Add the promising projects to the watchlist and rate them, with S-level being framework projects that have the potential to form an ecosystem.

3. The initial investment amount is between $2000 and $3000, with a maximum holding of two thousandths for a single project.

4. Be cautious when increasing positions, and continuously observe the project's development.

5. In principle, obtain 10 times (, approximately 200-300 million USD FDV ) before selling.

In addition to the two-stage consolidation strategy, investors will also use the PVP lottery flow method, but it is not limited to AI projects.

Overall, investors emphasize the importance of position management, controlling risks through staggered entry and setting position limits. At the same time, they maintain a profit-oriented mindset to prepare for potential large market movements in the future.