Market Metrics

Total Crypto Market Cap: down 0.4% to $2.67T
Total AI Sector Market Cap: down 2.2% to $34.53B

Top Movers (24 hours):

📈 Kizuna (KIZUNA): up 9.7% to $0.0₇1176
📈 Arbius (AIUS): up 7.5% to $77.06
📈 LayerAI (LAI): up 6.7% to $0.02949

Weekend News

🟠 Emad Mostaque announced the launch of Schelling AI, a new project dedicated to building and supporting open-source AI models, datasets, and code, focusing on culturally-aware applications in science, education, and creativity to “advance humanity.” The project will be underpinned by that will allegedly be secured through AI compute mining, aiming to become a "Schelling point" for the open-source AI ecosystem.

🟠 Despite PRIME being down >50% from its ATH, the community remains largely bullish, with >20% of the circulating supply now time-locked in Wayfinder at a 341-day weighted average duration. However, some members are outlining some valid counterpoints, as seen here.

🟠 NeuralAI has launched a new AI model, enhancing 3D creation capabilities with faster generation speeds, game-ready mesh accuracy, and enhanced text-to-3D and image-to-3D features. Token holders can test the model here.

Project Spotlight 🔦 

Key Takeaways

• io.net, a decentralized physical infrastructure network (DePIN), is set to launch its token tomorrow amidst controversy and allegations of GPU spoofing.

• CEO Ahmad Shadid resigned just two days before the token launch, with COO Tory Green taking over, citing a desire to focus on the project's growth and success.

• The IO token, designed to be the central asset of io.net's computing network, has a maximum supply of 800 million tokens and is currently trading at a ~$3.7B valuation in Aevo's pre-market.

• io.net has allocated a generous 50% of tokens to the community, among the highest community allocations seen in 2024, potentially aligning token holders with the project's long-term success.

• Despite the high valuation and competitive pressures in the decentralized computing space, the substantial community stake may help io.net navigate the challenges and controversies surrounding its launch.

This week, one of the most hyped projects of the year is set to launch it’s token amidst a tsunami of controversy.

io.net, a decentralized physical infrastructure network (DePIN), is the project we’re referring to. If you’re not up to speed already, io.net aggregates underutilized GPUs from sources like independent data centers and crypto miners to provide on-demand, distributed computing power for AI and machine learning tasks.

This week the project was finally meant to launch their token, but, just two days before the token generation event, founder and former CEO Ahmad Shadid announced his resignation. The decision has been made that COO Tory Green will be taking over as CEO, with Shadid citing a desire for the project to "move forward without distraction and focus on its growth and success.” This move comes in the wake of turbulence for io.net, which has faced scrutiny from sector leaders like Akash Network's CEO Greg Osuri and Martin Shkreli over discrepancies in its reported GPU network size, leading to allegations of GPU spoofing.

Shadid's departure, which referenced unspecified allegations, also reignited questions about his past involvement in other crypto projects. While Osuri views the leadership change as a positive step, he maintains that significant concerns about io.net remain unresolved.

Despite these challenges, the io.net team is pushing forward with the IO token launch, scheduled for tomorrow at 12:00 pm UTC. The token is currently trading at ~$3.7 B valuation in Aevo’s pre-market.

The IO token is designed to be the central asset of the io.net’s computing network, where it will be used for payments, staking, fees, and rewards. IO will have a maximum supply of 800 million tokens, with 500 million distributed at launch and the remaining 300 million emitted hourly over 20 years as rewards to suppliers and stakers. These rewards follow a disinflationary model, starting at 8% annually and decreasing by ~12% yearly.

The initial 500 million tokens will be distributed among various stakeholders, including investors, core contributors, and a staggering 50% to the community.

To help sustain value, io.net also implements a burn mechanism using network revenue to purchase and burn IO. The network generates revenue through reservation fees (0.25% for both users and suppliers) and payment fees (2% for USDC payments, no fees for IO payments), incentivizing the use of IO tokens within the ecosystem.

Our Take

Despite being one of 2024's most hyped AI projects, io.net has found itself in a precarious position. The FUD, mostly coming from Shkreli regarding io.net GPU commitments, real GPU usage, and the project’s valuation, is seemingly justified considering the project team’s move to replace Shadid with Green.

Adding fuel to the fire, io.net's pre-market valuation of $3.7 billion has raised eyebrows. A cursory glance at the project's explore dashboard leaves many wondering if this figure is more hype than substance, especially in a competitive decentralized computing space where projects like Akash and Render have already established strong footholds.

Yet, amidst the storm of skepticism, io.net has made one move that could prove strategically brilliant: allocating a generous 50% of tokens to the community. This is among the highest community allocations seen in 2024 and could align a significant portion of token holders with the project's long-term success, turning critics into stakeholders.

Note: If you participated in our coverage of the airdrop campaign back in March, you could be in for some free tokens tomorrow.

Will the community's substantial 50% stake override concerns about leadership changes and competitive pressures? Or will the weight of unanswered questions and high valuation sink the project before it can truly swim?

We will watch the show unfold this week when the token launches.

Meme of the Day

Not us… 👀