In the fast-paced world of crypto, where projects come and go like viral memes, timing is everything. Evans Web3 Dev, a prominent figure in the Web3 space and unofficial curator for Virtuals Protocol, recently stirred up discussions with his candid take on the platform's Genesis phase. In a tweet thread that's gaining traction, he doesn't mince words: he called Virtuals Genesis a Ponzi scheme—but hear him out, because he's not spreading fear, uncertainty, and doubt (FUD). Instead, he's sharing lessons from turning $8k into $121k and why he's jeeting (crypto slang for selling quickly) his positions now.

Understanding Virtuals Protocol and Its Genesis Phase

For those new to the scene, Virtuals Protocol is essentially the "Wall Street for AI Agents." It allows users to co-own and interact with autonomous AI agents, each powered by blockchain technology. These agents, like VaderAI or Tracy.AI, often launch as tokens, blending AI innovation with crypto economics. Think of it as meme tokens meets AI—where agents can be fun, thematic characters that generate buzz and value through community engagement.

The Genesis phase, or v1, was Virtuals' initial rollout, featuring a points farming system. Users staked tokens like $VADER to earn points, which could lead to airdrops or other rewards. But as Evans points out, this model led to rampant points inflation—meaning the value of points diluted over time as more were minted. Combined with staking locks (your funds tied up for 14 days) and impermanent loss (the risk of losing value when providing liquidity in volatile pools), it created a high-risk environment. Evans farmed across multiple wallets from day zero, showcasing his strategies transparently.

In the screenshot from his main wallet, you can see the real gains—but also the reality check. "Unrealized gains aren’t gains," he warns. It's a classic crypto mantra: profits on paper can vanish if you don't exit at the right time.

Why Evans Labeled It a Ponzi—and Why That's Not Unusual in Crypto

Ponzi schemes in crypto often refer to projects that rely on new inflows to pay early participants, without sustainable underlying value. Evans admits most crypto ventures have Ponzi-like elements; the key is recognizing the cycle and timing your exit. He sold almost everything last week (as per his older quoted post from June 2025), avoiding the bleed from -80% drops in staked bags with no product launches in sight.

But here's the twist: despite the harsh critique, Evans is "REALLY bullish" on Virtuals' next launch model. He believes it's poised for generational wealth, especially if macro conditions (like broader market trends) align. This optimism stems from Virtuals' evolution—shifting from unsustainable farming to more robust token launches via their Agent Commerce Protocol.

Community Reactions and What It Means for Meme Token Enthusiasts

The thread sparked varied replies. One user speculated on a September 30 announcement, tying into hints from Virtuals insiders. Others expressed caution, with one avoiding Virtuals altogether due to past token dumps, preferring lower-cap plays like @AIxVC_Axelrod. Hopeful voices reminisced about Virtuals' peak in late 2024, while skeptics called the original model a "wild ride but unsustainable."

For meme token hunters, this is gold. AI agent tokens on Virtuals often start as memes—fun, community-driven ideas that can explode if they catch on. Evans' advice? If you have reach, keep yapping (engaging in discussions) and staking strategically. But always plan your exit. As meme tokens evolve with AI, platforms like Virtuals could birth the next big viral hit.

Looking Ahead: Bullish Signals for Virtuals' Future

Evans' thread isn't just a sell signal; it's a roadmap. With Virtuals' $VIRTUAL token already live and agents gaining millions in engagement, the new model could address Genesis flaws—perhaps with better liquidity, reduced inflation, or integrated AI utilities. If you're into blockchain and memes, keep an eye on Virtuals' updates. Timing the next wave could be your ticket to those 100x gains, but remember: in crypto, diamond hands can turn to dust if you're not vigilant.

Stay tuned to Meme Insider for more breakdowns on emerging tokens and strategies to navigate the wild world of Web3.