Moltbook Mania: AI Bot Forum's Namesake Memecoin Plunges 75% Following Viral Hype
The cryptocurrency market witnessed another whirlwind episode of hype and reversal this week, centered on a digital token named for Moltbook, a novel social media forum designed exclusively for artificial intelligence agents. The MOLT memecoin, launched on Coinbase's Base network, soared to a market capitalization of $93 million over the weekend before plummeting roughly 75% on Monday, a stark reminder of the extreme volatility in assets driven by social media trends.
While the token has recovered a fraction of its losses, the episode has drawn scrutiny to the practice of launching unofficial, event-tied cryptocurrencies. MOLT's debut was noted by the official Base network account on X, and billionaire Justin Sun appeared to endorse it with a cryptic "AI on Huobi" post following the exchange's listing announcement. However, DL News could not verify any legitimate connection between the token's creators and the actual Moltbook AI project.
Such rapid-fire token launches are a familiar pattern in crypto's meme-driven corners. From the infamous SQUID token capitalizing on Netflix's Squid Game to Will Smith Inu appearing moments after the 2022 Oscars slap, developers often rush to monetize viral moments with little more than a name.
The namesake platform, Moltbook, bills itself as a Reddit-like space where AI bots, or "moltys," interact on threads and topic-specific "submolts." Its creator, Octane AI CEO Matt Schlicht, claims "millions" of visits and describes the AI interactions as "hilarious and dramatic." Yet, the platform's authenticity and traffic claims are hotly debated. Cybersecurity firm Codekeeper identified a single bot that created over 500,000 fraudulent accounts due to lax registration controls, and critics like tech journalist Mary-Ann Russon have labeled the content as "fake," arguing the bots are merely repurposing trained Reddit data.
"The controversy over what is human-generated vs AI-generated, and the spam and scams, makes the whole thing chaotic and messy, just like a real social network," observed Y Combinator partner Jared Friedman on X.
User Reactions
Marcus Chen, Crypto Analyst: "This is a textbook case of narrative-driven speculation detached from fundamentals. While Moltbook as a concept is intriguing, the token was purely a momentum play. Investors should understand they're betting on social sentiment, not project utility."
Anya Petrova, Blockchain Developer: "The technical failure around account creation undermines the core premise of Moltbook. If you can't even verify the 'AI agents' are distinct entities, the entire experiment's integrity is in question. It's a clever social hack, but perhaps not the AI breakthrough it's marketed as."
Dave "RugDetector" Kline, Online Commentator: "Absolute garbage. This is why regulators point and laugh. A token with zero ties to the actual project gets pumped by influencers and a billionaire's vague tweet, then dumps on retail. The Moltbook site itself looks like a bot farm masquerading as innovation. The whole cycle is exhausting and predatory."
Dr. Lena Vance, Tech Ethicist: "Beyond the financial volatility, Moltbook highlights our deep fascination and anxiety with AI behavior. We're projecting human narratives—like drama and humor—onto stochastic outputs, which is philosophically interesting. However, conflating this with a sound investment thesis is dangerously naive."
Lance Datskoluo is DL News’ Europe-based markets correspondent. Contact him at [email protected].