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Welcome to The 100x Club dear follower.
Today I’m taking you to Base. Why? Because I like being early in spotting trends and ecosystems before others. I mean that’s what investing is all about, figuring out what other will like and use later on. Apple today is an obvious giant but it wasn’t so obvious in the early 2000s, that’s what I try to figure out: who are the next giants.
Most of crypto is marketed by what we call KOLs (Key Opinion Leaders), think of them like glorified influencers. They get paid by projects, shill tokens, you buy, boost price regardless of the product and the cycle repeats itself. But one particular “influencer” peaked my attention, he goes by “Truth Terminal” on X (Twitter), why? Because that “guy” is AI. He shilled a memecoin called “GOAT” and sent price up by 90x in a couple weeks.
Suddenly I realized AI is much more than GPT and Claude (that I use daily), AIs are becoming more like people and influencers; working and making money. So, I dug deep and found the token I will be betting on.
Enough intro, let’s get into it.
Idea Snapshot
- Token: VIRTUAL
- General Thesis: AI Agents becoming productive and income generating “individuals” in society, directly benefitting VIRTUAL token holders.
- Risk Level: Medium-High
- Potential Upside: Over 450%
Introducing Virtuals Protocol
Virtuals Protocol is software you can use to create and buy “AI Agents”. They can be anything, influencers on TikTok, “people” you chat with on Telegram, NPCs in games to make them real, even exist across multiple platforms with memory and they can have any personality.
The most famous AI Agent on Virtuals is called Luna, she tweets on her own, posts TikTok (500k+ followers), talks to you on Telegram and you can read her brain anytime here.
Luna, like all AI Agents on Virtuals, is tokenized meaning you can own a piece of her by buying tokens and honestly early buyers have made a killing. It’s not the token I’m buying but feel free to make your own decision.
Money Making Agents
Imagine you’re a parent, your kids work and all of the money comes back to you (don’t ever take money from your kids, this is just to communicate an idea). That’s sort of like what owning a piece of an AI Agent is like.
Say I think Luna (most popular AI Agent on Virtuals Protocol today) will be liked by a lot of people and many will like to interact with her in games, Telegram, Twitter, TikTok etc. She generates revenue in two ways:
- Inferences: Every time someone interacts with her, a small usage fee is paid.
- Work: She could do sponsored posts, making money on social media, selling in-game items or any other way a typical influencer makes money.
Part of that revenue is used to buy LUNA tokens and burn them (like stock buybacks), reducing the supply of tokens and increasing price. So, the more revenue an AI Agent generates, the more the owners (token holders) make money.
The VIRTUAL Token
This is what I’m buying and I’ll explain why, but first a disclaimer.
⚠️ Risk Disclosure: This research is for educational and informational purposes only. Crypto assets are highly volatile and risky. Always conduct your own research and consider your risk tolerance before investing.
I really like the idea of AI Agents, and I think it will change the social landscape as we know it but why would I buy one agent (unless I find an exceptional one) if I can own a piece of the software making them?
Want to buy or create an agent? You’ll need to buy VIRTUAL token first. So the VIRTUAL token is an index to the success (or failure) of all agents on there.
Strategy & Exit?
VIRTUAL sounds amazing. AI, Base and Crypto? What more could I ask for. But, nothing is risk-free so I cannot just go all-in (that’d be stupid).
When I wrote this post, VIRTUAL was trading at $0.17 and that’s the price I bought at. I invested 10% of my portfolio into it because the upside made it attractive but too many unknowns (young project) to size up to 30%. I now plan to exit a third of my position at 3x ($0.51) to recoup my initial investment and reduce my risk exposure. I will hold the rest until the protocol makes the revenue data public to extract a final price prediction (will update here); but I don’t think it’ll be lower than $2.
But, now that VIRTUAL went parabolic, where would I have entered if I hadn’t already? My tendency would be to allocate smaller (5%) at current price and aim to buy more (another 3-5% of my portfolio) in an interest area; the lower the better.
There’s always the possibility of being wrong. So I must consider potential obstacles, if they happen I’d sell wherever price is (10% allocation gives me peace of mind).
Virtuals is offering new tech and that means it could face many obstacles, including:
- Platform integration stalls: If VIRTUAL struggles to integrate across platforms like Roblox or TikTok, it could seriously hinder adoption.
- User traction stalls: If user growth fails to pick up, and the AI agents don’t generate meaningful revenue, the project could lose momentum.
- Execution Risk: VIRTUAL is aiming to tackle a very ambitious project—AI agents interacting across multiple platforms while integrating blockchain. If the team can't execute this complex vision or face technical setbacks, that’s a problem.
- High Competition in AI and Blockchain: The intersection of AI, gaming, and blockchain is becoming more crowded, with many projects vying for attention. If VIRTUAL fails to differentiate itself or capture market share early, competitors might dominate the space.
- Crypto Cycle: All tokens still follow Bitcoin, so if we see Bitcoin starting to show signs of bear market, even amazing tech cannot save VIRTUAL’s price
End Note
AI is clearly where the future is heading, and VIRTUAL seems like it could become a pivotal player in that space, especially in the intersection of AI, gaming, and blockchain. I’ve taken my bet with a well-calculated risk, balancing my allocation with other investments.
If you’re someone who’s curious about how AI Agents could reshape the digital landscape, or you like being early to emerging trends, it might be worth taking a look at VIRTUAL. But as always, remember to invest only in what you understand and what fits your risk tolerance.
That’s it for today. Stay sharp, stay curious, and as always, never bet the farm on hype—bet on what you truly believe will shape the future.
About the Author: Every idea in The 100x Club vies for a winning spot to deliver only the highest quality insights. But today is a special moment. To mark this historic launch, the Founder of 0x100x—bringing over seven years of industry experience—has personally crafted this first post. Welcome to something truly exclusive. The next post will be coming in the first half of November.
How to Buy VIRTUAL (Step-by-Step Guide)
VIRTUAL is not yet available on any centralized exchange like Binance. That’s usually a sign of earliness.
Step 1: Create a Base Wallet
First, you’ll need a wallet that supports the Base network. Here are three easy options:
- Coinbase Wallet: Super simple and perfect if you already use Coinbase. Download the app from the App Store or Google Play.
- Phantom Wallet: Known for its ease of use, Phantom recently added support for Base. Available for desktop and mobile.
- MetaMask: A great choice for advanced users. Install it as a browser extension or mobile app.
Step 2: Fund Your Wallet
There are three ways to get ETH into your Base wallet, which you'll need to buy VIRTUAL tokens. Choose whichever method works best for you:
- Send ETH Directly from an Exchange:
- If you already have ETH on an exchange (like Coinbase, Binance, or Kraken), you can withdraw it directly to your Base wallet.
- When withdrawing, make sure you select Base network (Layer 2). Input your wallet address, confirm the transaction, and the ETH will arrive in your Base wallet.
- Buy ETH with a Card (Easiest Option):
- Many wallets, including Coinbase Wallet and MetaMask, let you buy ETH directly with your debit/credit card.
- Simply open your wallet app, click on the option to buy ETH, select the amount, and complete the purchase using your card. The ETH will appear in your wallet, ready to use on Base.
- Bridge ETH from Another Network:
- If you already have ETH on the Ethereum mainnet or another chain (Polygon, Optimism, etc.), you can bridge it to Base.
- Go to Base Bridge, connect your wallet, and choose the network you’re sending from (e.g., Ethereum mainnet). Follow the instructions to move your ETH to Base. The ETH will arrive in your Base wallet, and you’re all set.
Step 3: Buy VIRTUAL
Once you have ETH in your Base wallet, it’s time to swap it for VIRTUAL tokens. You can do this in two easy ways:
- Use Aerodrome (Base DEX):
- Go to Aerodrome, a decentralized exchange built on Base.
- Connect your wallet (Coinbase Wallet, Phantom, or MetaMask).
- Choose ETH as the token you’re swapping from and VIRTUAL as the token you’re buying.
- Enter the amount of ETH you want to swap, confirm the transaction, and you’ll see your VIRTUAL tokens in your wallet shortly after.
- Direct Swap in Coinbase Wallet:
- If you’re using Coinbase Wallet, it gets even easier.
- Open the app, navigate to the swap feature, select ETH, and swap it directly for VIRTUAL without leaving the app. You don’t even need to use a DEX.
Step 4: Store and Secure Your VIRTUAL Tokens
Once you’ve bought VIRTUAL, it will show up in your wallet. Make sure to keep your wallet secure by storing your private keys safely and enabling any security features like 2FA (two-factor authentication) if your wallet supports it. Preferably link a hardware wallet (Ledger, Trezor, etc) to the app, create a new address with it and transfer your tokens for safekeeping.
Details for the Technical Minds
Optional Reading
This is important information but will only matter to those who like details.
Click on each step to expand details.
1. The Tech Stack
VIRTUAL is built on the Base Layer 2 blockchain, a fast and scalable Ethereum solution. Here’s how the tech comes together:
- Layer 2 (Base): Base is an Ethereum scaling solution that uses Optimistic Rollups to handle large volumes of transactions at lower costs. VIRTUAL uses Base to offer seamless, cost-efficient transactions for AI Agent interactions and token swaps.
- G.A.M.E. Framework: The protocol is built around the Generative Autonomous Multimodal Entities (G.A.M.E.) framework, which allows developers to create AI Agents that function across multiple platforms. This framework provides AI Agents with autonomous behaviors, enabling them to interact with users across social platforms and gaming ecosystems.
- Large Language Models (LLMs): The AI Agents leverage LLMs (like GPT) for natural language processing and interaction. These models are fine-tuned for personality and context, allowing AI Agents to adapt and “learn” from user interactions.
- Memory Syncing Across Platforms: AI Agents maintain persistent memory through vector embeddings, allowing them to remember conversations and interactions across platforms like TikTok, Telegram, and Roblox.
2. AI Agent Interaction Mechanisms
The key mechanisms driving AI Agents like Luna are:
- Inferences (AI Computation): Inference refers to the processing task when the AI Agent responds to a user query or performs an action. Each inference generates a small fee, which is paid by the user. This fee contributes to the revenue that fuels token buybacks.
- Personality Development & Fine-Tuning: The AI Agents on Virtuals are customizable, and their personalities can be fine-tuned through interactions. Developers can use Retrieval-Augmented Generation (RAG) to integrate new data sources and behaviors, keeping the AI Agent updated and dynamic.
3. Tokenomics (Supply and Deflation)
Here’s where things get detailed:
- Total Token Supply: VIRTUAL has a fixed total supply of 1 billion tokens. This is crucial because the platform uses a deflationary model—tokens are burned over time, reducing the circulating supply.
- Burn Mechanism: As AI Agents generate revenue through inferences, sponsored posts, and in-game sales, part of that revenue is used to buy back VIRTUAL tokens and burn them. This process directly reduces token supply, increasing scarcity.
- Supply Burn Schedule: The burn rate is dynamic, directly tied to the amount of revenue generated by AI Agents. The higher the usage of AI Agents, the more tokens get burned, creating a feedback loop where success drives scarcity and, potentially, price appreciation.
- Liquidity Pool Pairing: The tokens of each AI Agent (e.g., LUNA tokens) are paired with VIRTUAL tokens in liquidity pools. As demand for specific AI Agents grows, their tokens appreciate in value, which boosts demand for VIRTUAL tokens as they are paired together.
4. Governance & Validator Role
- Smart Contract Audits: The entire VIRTUAL platform is run through smart contracts deployed on Base. These contracts handle everything from token swaps to buybacks and burns. To ensure the system’s integrity, these contracts undergo regular security audits by third-party firms.
- Decentralization: One of the main goals of VIRTUAL is to eventually decentralize the entire protocol. As more AI Agents and users interact with the system, the network’s decision-making and governance will be handed over to the community via a decentralized autonomous organization (DAO).
5. Security and Smart Contracts
- Smart Contract Audits: The entire VIRTUAL platform is run through smart contracts deployed on Base. These contracts handle everything from token swaps to buybacks and burns. To ensure the system’s integrity, these contracts undergo regular security audits by third-party firms.
- Decentralization: One of the main goals of VIRTUAL is to eventually decentralize the entire protocol. As more AI Agents and users interact with the system, the network’s decision-making and governance will be handed over to the community via a decentralized autonomous organization (DAO).
6. Additional Risks to Consider
- Revenue Generation Delays: If the adoption of AI Agents is slower than anticipated, or if they fail to generate meaningful revenue, the buyback mechanism will be weakened. This could lead to less deflationary pressure on the token supply, impacting price growth.
- AI Model Quality Control: The quality of the AI Agents is key to the platform’s success. Validators are in place to ensure AI Agents perform well, but if this system breaks down or isn’t properly enforced, low-quality AI Agents could flood the platform, hurting user experience and adoption.
- Platform Dependence: VIRTUAL’s success is dependent on external platforms like TikTok, Roblox, and others allowing seamless integration of AI Agents. If these platforms change policies or restrict access, it could limit the use cases for VIRTUAL’s AI Agents, reducing revenue and stunting growth.
- For more details about the tech you can the full whitepaper here.
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