With the hype about AI on a continuous rise, there are ongoing concerns over the reputation of AI projects that will be coming up over time. Currently, you will see on various social platforms, hype on some AI coins that will do 100X in the next bull run. The fact here is, some of these coins will stand the test of time while most will be rugging investors at some point.

Presently we have Memecoins that do not have AI use cases but are getting attention because the coin is said to be built by an AI developer(s). We will see more of these types of Memecoins when the bull market starts and many people will fall victim to scams.

How then can we follow along with the hype?

First, we need to remind ourselves that investing in Cryptocurrency is risky on its own. This will help us prepare our minds when dealing with AI coins. We also need to see the UTILITY of the AI-associated token in the AI use cases the project is building before going in heavily on the coin. This is important because the utility of the token in the AI use cases will help control inflation.

We know that having a utility doesn't stop a project from rugging investors but it is a good way to identify the ones with higher chances of staying.

Secondly, if an AI coin is a Memecoin ( has a huge supply and no Use cases), treat it as a Memecoin. Know when to exit the market. Invest only what you can afford to lose.

Thirdly, look into the founders of the project. One of the ways to know a new project that will stay is when the founders are out there with their faces. If the founders/ Developers are publishing in their OLD LinkedIn accounts with their faces as profile pictures, doing Zoom meetings with Cameras on, etc, then there is transparency and they are likely to stay.

Most times we invest in projects where developers and founders are hiding under bored Ape profile pictures. These people can easily rug investors.

A recent case is with the rugpull that happened three days ago. The Encryption AI developer rugged users during liquidity Migration and attested it to gambling addiction. No one can trace him and he has deleted all the social media handles.

Always monitor the Market cap of this AI coin, know when people are moving their funds out, and follow suit. Some rugpull happens slowly before the big dump.

This is not only for AI coins, other Memecoins like Pepe coin despite having good supporters can still rug users. We must protect ourselves.

Image source