Developers of the Solana artificial intelligence (AI) hackathon recently came under fire from Yash Agarwal, the creator of SendAI. SendAI founder and Solana AI hackathon curator criticized developers for continually launching new tokens in a short period of time.
Why Solana AI hackathon curators are concerned
In a recent article, Agarwal noted that a few Solana hackathon builders launched the token, which reached a market cap of $50 million. He said this dramatic increase in market capitalization raises questions about the viability and sustainability of recently launched projects.
In perspective, Solana has announced the launch of the first Solana AI Hackathon on December 11, 2024. Powered by SendAI, this hackathon aims to build AI agents and tools on the Solana blockchain. This marks an important milestone in the integration of artificial intelligence and blockchain technology.
The rewards range from $5,000 to $30,000 and are aimed at inspiring genuine crypto AI initiatives. Within a month, over 400 projects registered for the Solana hackathon. SendAI provides AI hackathon developers with access to expert mentoring, idea boards, and resources. These projects may also raise venture funding or launch tokens.
While Agarwal acknowledged the success of the hackathon, he highlighted the current frenzy of token launches by builders. SendAI’s founder criticized this phenomenon, accusing Solana AI hackathons of becoming a “gambler’s paradise.”
He added that the Solana AI hackathon inadvertently became an AI token discovery platform.
Additionally, Agarwal pointed out that some construction companies are leveraging Solana hackathons and SendAI to increase project reliability. He said these developers will submit their projects at the hackathon and then proceed to launch the token, which will be promoted by Whale and some industry players.
Blockchain users who think 100x more projects could emerge from hackathons will snap up these tokens immediately. Agarwal said this situation is creating fertile ground for speculation.
“It’s great to see some builders issuing tokens and using them as a means of capital formation, but like any other shiny meta, there’s too much foam right now.” he pointed out.
Whale Influence and Agarwal’s Advice for Solana Hackathon Builders
Agarwal said many projects, even with market caps above $200 million, simply release random announcements and demos to provide a quick pump to please users. He emphasized that only. Eventually, as the excitement dies down, these tokens will plummet.
The SendAI founder emphasized that whales and cabals in the crypto industry are exacerbating the current situation. He said these entities have accumulated enough supply or persuaded builders to allocate tokens. They pump up tokens by fabricating a story that the project is real and backed by industry players.
The price then plummets as whales dump their tokens, hurting retail investors and builders. As a result, Agarwal advised genuine builders to focus on launching tokens with vision and a long-term outlook.
Agarwal advised investors not to bet on projects that are poorly understood. “Those of you who are looking for a quick profit will end up being the biggest losers in all of this,” he said.
Meanwhile, many analysts believe Solana is on the verge of a breakthrough. As revealed by CNF, some analysts believe Solana, currently trading at $217, could soon jump to $320 and reach $440 by mid-2025.
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