First, recharge your faith:
1. Policy dimension, governments around the world have placed AI in an important position within national development strategies, vying for a dominant position in global competition.

2. Capital dimension, tech giants continue to gamble on AI, with SoftBank, OpenAI, and Oracle committing to invest $500 billion. The 'stock god' of the U.S. Congress, Representative Pelosi, has also made significant bets on AI by purchasing call options for AI companies.

3. Industry dimension, DeeSeek has sparked a new revolution in cost reduction and efficiency enhancement in the AI field. Although it has pierced through the temporarily inflated valuations of the AI bubble, it is beneficial for the long-term development of AI and is expected to promote more large-scale applications.

Since OpenAI released ChatGPT in 2022, global attention on AI has surged unprecedentedly. However, for the past few years, capital has been caught between choosing AI and blockchain, with investment in the AI field at one point heavily draining from blockchain. Until this year, with the emergence of AI Agents, more and more people began to explore the practice of AI + blockchain.

In the last two months of 2024, we witnessed the rapid surge of the Crypto AI bubble, with Solana continuously generating speed runs on a daily basis. The total market value of AI skyrocketed from $4.3 billion to $28.1 billion, and blue-chip projects like ai16z, virtual, and aixbt saw over 10 times their value increase.

In fact, during the process, shadows of the bubble's collapse could already be seen. Shaw, Solana's co-founder, and various celebrities turned stone into gold, resulting in hundreds of 'quality targets' appearing in a short time. The trading logic in the market relied more on the analysis and judgment of capital flows and market-making techniques rather than the value judgments of fundamentals.

Meanwhile, the secondary market has shown signs of liquidity fatigue since December 2024. $TRUMP emerged, draining liquidity from the market. The 'crypto-friendly president' Trump did not embrace crypto culture as we had expected; the absence of positive news has become negative news, leading the market to start a downward trend without any warning, culminating in the recent avalanche.

The long-term logic of AI is not wrong; just like the internet bubble of the past, from the perspective of later human history and internet development, the internet has delivered, even far exceeding expectations. It is just that the current market is overly restless and eager for quick success, causing Crypto AI to expand rapidly in the short term. Our current position is already ahead of the actual development of the industry.

The first phase bubble of Crypto AI has burst, but this does not mean that this track has been discredited. I hold a pessimistic view on industry leaders like ai16z and virtual being able to experience a 'second spring.' I look forward to new protocols with practical application value emerging in the future to push Crypto AI into the next stage.

Any capital market is a game of bubbles; enjoy dancing with the bubble, but remember that the collapse of a bubble often happens unexpectedly.