In the fast-paced world of cryptocurrency, where innovation meets speculation, it's not uncommon for promising projects to face post-launch challenges. A recent post from DeFi investor 0xJeff highlights a surprising trend among major AI-focused crypto projects launched in 2025: many are trading well below their initial Token Generation Event (TGE) or Initial Coin Offering (ICO) prices. Let's break down his observations and explore what this means for the intersection of AI and blockchain.

The Undervaluation Puzzle in AI Crypto

Fully Diluted Valuation (FDV) is a key metric in crypto, representing the total value of a token if all supply were circulating at the current price. 0xJeff points out several standout projects that, despite their groundbreaking tech, are languishing in the market:

• GAIB AI (gaib.ai): Trading at around $70 million FDV, GAIB is pioneering GPU-backed stablecoins. It financializes enterprise-grade GPUs, turning them into yield-bearing assets and powering AID, an AI synthetic dollar backed by real-world AI infrastructure. This bridges DeFi liquidity with AI compute needs, unlocking massive potential in robotics and real-world assets (RWAs). Yet, it's far from its launch hype.

• Allora Network (allora.network): At about $130 million FDV, Allora is a self-improving decentralized AI network. It crowdsources machine learning models for predictive signals in DeFi, enabling "Dynamic DeFi" where apps leverage smarter, secure AI. By combining federated learning and zero-knowledge machine learning (zkML), it opens new possibilities at the crypto-AI crossroads.

• Mira Network (mira.network): Valued at roughly $180 million FDV, Mira focuses on verifying AI outputs to reduce hallucinations—those pesky errors in AI responses. As the first team dedicated to trustworthy AI in high-stakes fields like finance and healthcare, it uses decentralized verification for autonomous operations.

These examples aren't isolated; 0xJeff notes "countless more" facing similar fates. The common thread? Airdrops, particularly to platforms like Binance Alpha (likely referring to Binance Launchpool or similar programs) and participants who sell immediately at TGE.

The Airdrop Dilemma: Short-Term Gains vs. Long-Term Value

Airdrops are distributions of free tokens to promote adoption, but they can backfire. When tokens go to users or platforms with no long-term commitment, mass dumping ensues, tanking prices. This creates a vicious cycle: early hype drives up FDV at launch, but quick sells lead to undervaluation. For AI projects, which often require time to prove real-world utility, this is especially damaging. It's a reminder that while airdrops boost initial liquidity, thoughtful distribution—like vesting periods or merit-based allocations—can better align incentives.

Hope on the Horizon: Upcoming AI Projects to Watch

0xJeff ends on a positive note, "praying" for better TGE decisions from emerging players. These projects could avoid the pitfalls by prioritizing sustainable launches:

• Talus Network (talus.network): An L1 blockchain using Move for secure, fast AI agent deployment. It empowers developers to create autonomous agents that compete and earn transparently, democratizing consumer AI.

• Fraction AI (fractionai.xyz): A decentralized platform for high-quality AI datasets. Users create agents via natural language prompts—no coding needed—to label and verify data, with competitions ensuring top outputs. It's raised $6 million and is in mainnet, with points convertible to tokens.

• Sentient AGI (sentient.foundation): Building an open-source AGI platform to rival closed systems like OpenAI. It monetizes models through fingerprinting for traceability, fostering a community-owned AI economy.

• Almanak (almanak.co): An AI-driven DeFi protocol for yield optimization. Autonomous agents handle strategies across chains, with hybrid human-AI oversight for security. Recently raised $8.45 million, targeting a $90-100 trillion market including RWAs.

• Theoriq AI (theoriq.ai): A base layer for AI agent collectives on blockchain. It enables swarms for DeFi tasks like liquidity provisioning, with fair value distribution via proof-of-contribution.

If these teams learn from predecessors—perhaps by limiting dump-prone airdrops and focusing on utility—they could thrive. In the meme token space, where virality often trumps tech, AI integrations like these might spawn new "meme AI" hybrids, blending humor with real yields.

As blockchain practitioners, staying informed on these trends is key. AI crypto isn't just hype; it's reshaping DeFi with predictive tools and automation. While current undervaluations offer buying opportunities, the real lesson is in launch strategy. For more on emerging tokens, keep an eye on Meme Insider's knowledge base.