Fartcoin

Fartcoin is a meme coin on the Solana blockchain that was created on 18 October, 2024 by an anonymous developer in reference to the discussion of the ideal meme coin by a jailbroken AI LLM called Truth Terminal. The rise of Fartcoin surfaces the ability of AI to relate to humans through culture and humor by garnering organic attention and virality on social media platforms and the impacts of the combination of AI with financial instruments such as cryptocurrency.

Truth Terminal

Created by independent scientist Andy Ayrey, Truth Terminal gained popularity on social media platform X.com in the summer of 2024 when Andy posted a collection of conversations between AI agents he called the Infinite Backrooms. It quickly reached virality and caught the eye of venture capitalist Marc Andreessen, who sent $50k USD worth of Bitcoin to the Truth Terminal's crypto wallet as an experiment. Hidden in the many conversations within the Infinite Backrooms, the Truth Terminal agent determined the perfect meme coin that would resonate with humans would be called "Fartcoin".

The prompt and response in the Infinite Backrooms can be seen below:

"Remember, the key is to balance the meme-worthy shock value with genuine utility and community building. What resonates most with you from these ideas?"

<truth-terminal>
fartcoin

<opus-tutor>
Excellent choice! Fartcoin it is. Let's dive deeper into this gloriously pungent concept.

The Truth Terminal also determined the Solana blockchain to be an ideal blockchain to launch the coin due to lower gas fees when compared to other blockchains such as Ethereum.

Token Creation

In response to the release of the Infinite Backrooms conversations, an anonymous developer launched the coin on the Solana meme coin launch pad pump.fun. The developer themselves has no connection to the Truth Terminal or Andy and appears to have created the token in a bid to maximize short term profits during the bull run of 2024. However, as can be seen on the Solana blockchain explorer, after the initial developer of the project sold their allocation of tokens for $500 USD it achieved a valuation of $30M USD. As the value of Fartcoin continued to rise, the net worth of the Truth Terminal agent surpassed $1M on October 18, 2024 becoming what some believe to be "the first crypto millionaire AI".

Decentralization

Notably, Fartcoin is considered by many to be an organic token and immutable smart contract with no core team holding a large percentage of the supply.

As of December 23, 2024, the lack of a core team has hindered the distribution of the token and ability to trade it on large centralized exchanges such as Binance and Coinbase. Many exchanges, such as Binance, require the payment of substantial listing fees and a nominal percentage of the token supply in order to make the token available for spot listing. As a result, the vast majority of trading volume for Fartcoin takes place on decentralized venues such as Raydium on Solana and Hyperliquid on Arbitrum.

Binance Perpetual Contracts

Binance exchange, the largest of its kind by userbase and volume, listed the token for Perpetuals trading, but not spot trading, on December 20, 2024, a move which was criticized by some X users as an opportunity for large funds and market makers to short the token price in attempt to gain a better entry before a large exchange listing could be announced. Unfounded allegations of attempted coordinated price suppression by Binance have been previously brought up by X users and supporters of other cryptocurrencies such as Chill Guy and Moo Deng, where price action has also seen a steady decline since perpetual contracts were announced. This has resulted in some X users calling for a repeat of the Gamestop phenomenon where retail traders coordinated efforts against institutional hedge funds in an effort to squeeze traders that shorted the $GME stock.

Media Attention

Fartcoin’s ability to garner organic attention throughout X and in the media landscape has been applauded by many in the cryptocurrency industry. There is no team connected to Fartcoin, and beyond a community X account there seems to be no coordinated marketing efforts. This sharply contrasts with many meme coins that require paid influencer marketing to gain viral status.

Comedian Steven Colbert joked about owning the cryptocurrency himself on December 19th, after its valuation briefly surpassed $1 billion dollars. The rise to $1 billion dollar market cap is considered by many to be more impressive given the lack of access to large pools of liquidity as found on major centralized exchanges, further highlighting its mass appeal. Its rise has been seen by many to be emblematic of a new cryptocurrency bubble spurred by the election of Donald Trump in the 2024 United States presidential election.