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ChatGPT Memecoin, Cost $69 to Make and is Now Worth $638 Million – How long Will Turbo Rally Last?

Last Updated June 4, 2024 3:14 PM
Samantha Dunn
Last Updated June 4, 2024 3:14 PM

Key Takeaways

  • The recent surge in memecoin interest has seen Turbo and other themed memecoins reach new heights in popularity.
  • AI-generated memecoin Turbo has skyrocketed to over $638 million in just three months, making it one of the top-performing cryptocurrencies this year.
  • Retail interest has been high, but centralized exchanges dominate Turbo’s trading volume.

Despite memecoins basing themselves on internet humor, many have gained massive popularity and significant market value over the past few years. While memecoins are particularly popular among the so-called “degen” crowd, they are often designed more for entertainment and community engagement than for their technological innovation.

A recent entrant to the space is Turbo, a memecoin developed with the help of OpenAI’s chatbot, ChatGPT. This coin, developed by digital artist Rhett Mankind, has surged from its initial $69 cost to create to being worth an astonishing $638 million within three months.

Given the number of rugpulls and exit scams often attributed to memecoins, it is surprising to many that memecoins are still capturing attention, and are even created by high-profile figures like Donald Trump.

Introducing Turbo: A Memecoin Born from AI

Turbo’s journey began as an experiment by Rhett Mankind, who utilized GPT-4 to develop the coin’s concept, tokenomics, and smart contract. The project involved the community extensively, using polls on platforms like X (formerly Twitter) to decide on various aspects of the coin, from its name to its mascot.

Described by the platform as “a memecoin made by AI for the people,” the use of AI in creating Turbo is a significant aspect of its appeal.

GPT-4 was used to craft the coin’s foundational elements, including everything from its economic model to the technical coding required for its launch. The integration of AI  adds a layer of novelty that memecoins often look for to differentiate themselves from their competitors.

Despite starting with a budget of just $69, Turbo’s value has skyrocketed, driving interest in the memecoin and raising questions about the legitimacy and sustainability of such rapid growth.

Is Turbo a Good Investment?

With Turbo among the top-performing cryptocurrencies this year, its link with artificial intelligence has undoubtedly contributed to its popularity. However, another key reason behind the rapid rise in the value of memecoin is its strong community-driven approach. Mankind engaged the community through polls on social media platforms like X (formerly Twitter), allowing them to vote on various aspects of the project, such as its name and mascot.

While some investors see these coins as opportunities for substantial returns, others view them as highly volatile and risky investments due to their high volatility and the lack of underlying technological advancements.

What is often all too clear, however, is the hype surrounding such coins can fade quickly, leading to significant losses.

Memecoins Capturing Investor’s Excitement

Data from Coinglass  on May 28 showed that four of the top ten tokens with the highest open interest in the crypto leverage market were memecoins, underscoring the strong bullish sentiment among traders.

Over the past 24 hours Turbo has experienced over a 20% decrease . Considering the speculative nature of these coins, investors should be  aware that the price can decline just as quickly as it rises.

While investors may be keen to buy into the hype surrounding certain memecoins, it’s worth noting that several high-profile memecoin scams have led to millions in investor losses. This includes the Squid Game token  (SQUID), which capitalized on the popularity of the Netflix series “Squid Game” but turned out to be a classic rug pull. Investors found themselves unable to sell the token after purchasing it. The developers made off with over $3 million before abandoning the project.

Another memecoin that took off before taking off with investor funds is Evil Shiba Inu  (ESHI). Marketed as a variant of the popular Shiba Inu coin, Evil Shiba Inu promised high returns but ended up being a scam.

Even established cryptocurrency tokens are not safe from being tarnished by cryptocurrency scams. Recently the team behind the Solana-based CAT memecoin was implicated in a pump-and-dump scheme that involved a sniping attack.

How long Will Turbo Rally Last?

Despite the rapid rise of Turbo, there are signs that the initial retail purchasing enthusiasm may be waning. A recent video analysis highlighted a slowdown in retail demand for Turbo, despite ongoing interest in the token.

Although there has been significant search volume and interest in Turbo, the price has seen a decline from $0.8 to $0.6. On-chain statistics reveal that while retail investors initially showed strong interest, the momentum has shifted. The number of wallets holding substantial amounts of Turbo has plateaued, with medium-sized holders ceasing their purchases since May 27th and no significant changes in whale wallets over the past month, despite a tenfold increase in Turbo’s price during this period.

Centralized exchanges, such as OKX, Gate.io, and Huobi, dominate Turbo’s trading volume, with OKX alone seeing $66 million in Turbo trades over 24 hours. This centralized exchange activity  contrasts with the slowing retail demand, suggesting that while institutional and larger players may continue to influence Turbo’s market, the grassroots support that initially drove its price surge is diminishing.

High trading volumes have historically coincided with price peaks, while declining volumes have led to price drops. This trend implies that as trading volumes decrease, Turbo’s price is likely to continue its downward trajectory unless there is renewed interest and promotion by centralized exchanges.

Memecoins Done Right

Despite the risks and concerns around rugpulls, some memecoins have managed to build sustainable projects and communities. Shiba Inu (SHIB) is a prime example, having developed Shibarium, a decentralized platform that aims to enhance its ecosystem and showcase the project’s legitimacy.

DOGE has also had a largely positive trajectory, fueled by social media, celebrity endorsements, and market trends. Famously supported by Elon Musk, the meme-based cryptocurrency has drawn attention from both retail and institutional investors taking it from.

Launched in May 2023, Pepe’s PEPE token has had a turbulent journey. The coin struggled throughout 2023 and the beginning of 2024, remaining far from its target price of $0.01. However, the recent surge in the memecoin sector has breathed new life into PEPE. On May 27, 2024, it reached a new all-time high and surged to become the third biggest memecoin.

Will Regulators Start to Take Note?

The ease of creating memecoins and the highly speculative nature of these highlight the need for regulatory oversight. As the popularity of memecoins continues to rise, regulators are likely to scrutinize these assets more closely.

Increased regulation could curb fraudulent activities but critics argue this may also impact legitimate projects, potentially stifling innovation in the cryptocurrency space.

With the memecoin market being notorious for scams and rug pulls, where developers abandon projects after securing investors’ money, Turbo’s remarkable rise exemplifies both the explosive potential and the inherent risks of the memecoin market.

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