Memecoins Handed the Pen to AI and the Saga Got Weirder

Late in 2024, a prophetic AI Agent on X named Truth Terminal dropped a full Fartcoin blueprint that included an Initial Fart Offering, and more.

Late in 2024, a prophetic AI Agent on X named Truth Terminal dropped a full Fartcoin blueprint that included an Initial Fart Offering, tokenomics, a DeFi ecosystem, community-building strategy and an on-chain gas fee structure that literally toots with every transfer. 

Within days, the degens made it real, minting Fartcoin on Solana, and crowning themselves the Stink Marines. A few weeks later Fartcoin’s cap rocketed past 1 billion dollars, almost catching the AI’s earlier Franken token GOAT. That absurd AI memecoin success set the tone for 2025. Lore now flows from chatbots while liquidity pours in from irony-fueled investors, and one question often crosses the mind scrolling through the weird AI memecoin Discord servers… 

If AI memes can pump prices this hard, is lore the only utility now?

What the Heck Is Memecoin Lore?

Memecoin lore is the made-up backstory of a coin that otherwise does about as much as a pog.

Back in Doge times lore meant “wow such moon” scrawled in Comic Sans under a Shiba grin. Shiba Inu tried a little harder with a pumped-up woofpaper that promised to flip Doge. Still mostly punchlines and simple hopium.

the gas is far from over

— Fartcoin💨 (@FartCoinOfSOL) June 16, 2025

Today, lore has leveled up. 

Now we’ve got tokens rolling out full backstories and side stories. Sci-fi factions. Fantasy mascots. Side quests chosen by DAO vote. One Solana meme called Act I The AI Prophecy slaps you with an apocalyptic AI takeover story and an AI Lore Lab where holders pitch plot twists, then stake ACT tokens to decide what becomes canon. If you bag the coin, you can co-write the saga.

Crucially, lore ≠ tokenomics. Old-school number crunchers scan tokenomics and utility. Meme traders vibe-check the narrative. If a token makes the squad laugh, feel part of an in-joke, or helps imagine themselves in some grand saga, the chart can moon even when the code does absolutely nothing. 

Lore is the product. And with AI chatbots pumping fresh mythos 24/7 the product just keeps getting weirder by the day.

How AI Is Spawning the Weirdest Memecoin Universes Yet

A big catalyst is the explosion of AI tools & LLMs that crank out fresh lore on tap. ChatGPT and its cousins (Claude, Bard, and Elon’s new Grok) can spew out backstories, character descriptions, even dialogue for a meme token’s universe on command. Image generators like DALL·E and Midjourney conjure up mascots and comic panels to visually enrich the lore. We’re seeing tokens that launch with entire whitepapers written in-universe. 

In some cases, the lore precedes the token. The story is dreamt up first by an AI and the community simply brings the token to life after the fact. Fartcoin again is a textbook example.

One crypto artist famously used ChatGPT to create a memecoin from scratch, documenting the process step by step. The AI chose the name (TurboToad), wrote the token contract, and drafted a whimsical whitepaper; Midjourney generated a mascot image which the community voted on. All the website content and branding copy was written by ChatGPT too. That token ($TURBO) went from a $69 experiment to an $880M market cap phenomenon, purely on the strength of its AI-crafted origin story and community hype.

By late 2024, AI-designed meme coins were everywhere. One top AI meme, Goatseus Maximus ($GOAT), hit a $1.34B peak market cap and a whole crop of copycats followed. Another, Flying Avocado Cat (FAC), claims the honor of being the first token created by Elon’s Grok AI. Yes, a flying avocado/cat hybrid minted into existence by an LLM. 

Ridiculous? Absolutely. Profitable? Also yes. AI meme coins hit $10B combined cap by early 2025. 

Community = Co-Author: Decentralized Storytelling in Action

The wildest part is that these stories aren’t being written in isolation, as the community is often co-authoring the lore in real time. 

Crypto degens have essentially become volunteer writers, brainstorming on Discord and X Spaces like they’re in a TV show pitch meeting. Hop into a memecoin Discord and you might find channels dedicated to “Lore ideas” where holders role-play as characters or propose plot twists. 

Generational butthole. pic.twitter.com/klHpp2yAPb

— Butthole Coin (@thebuttholecoin) June 24, 2025

In some cases, governance votes decide which fan-created storylines become official. $ACT’s Lore Lab, as noted, literally lets users vote new lore chapters into canon. It’s crowdsourced storytelling on-chain.

Nevertheless, the irony is that even though the token has zero real utility, its lore-universe keeps expanding.

What Happens When AI Companions and Lore-Driven Tokens Merge

One fascinating offshoot of the AI lore trend is the rise of AI-driven characters that double as community managers and mascots. Instead of a human team tweeting and chatting, some projects have virtual influencers doing the job. 

Zerø ($ZEREBRO), an autonomous AI agent\ coin, essentially let an AI run wild as the project lead. The AI agent (Zerebro) deployed the token itself on-chain, then took over the project’s Twitter, Telegram, and even Discord, adjusting its tone to each platform like a true social chameleon. Zerebro-the-bot also generated an NFT art collection tied to the coin and even handled OpenSea bids automatically. 

In other words, an AI is literally playing the role of founder/CEO, artist, and community mod. That’s quite a step up from what they’re usually used for, like automating spreadsheets, scheduling tweets, or, more controversially, being trained to sext with AI as your synthetic crush.

People in these token communities start interacting with the bots as if they’re real figures, cracking jokes with the frog, tagging Truth Terminal AI in posts to seek its blessing, etc. 

There’s a definite parasocial element. If you spend hours in a voice chat where an AI character is hyping up the project lore and responding to you personally, you might catch some feelings of loyalty or friendship. 

As AI tech gets better at mimicking personality, expect to see even more lifelike virtual coin mascots. Maybe full-on AI VTubers hosting Twitter Spaces or YouTube streams in character. We’re basically turning shitcoins into mini anime franchises, where the coin holders are the fans and also the investors funding the show. It’s equal parts brilliant and bizarre.

Marketing Stunt or Postmodern Art?

All this raises another interesting question: are these AI-driven lore epics just elaborate marketing schemes, or a new form of participatory performance art? 

On one hand, it’s clear that crazy narratives are a powerful way to build buzz. A meme coin’s story is basically its marketing campaign. The more absurd and shareable, the better. A time-traveling AI hamster-monkey hybrid token (don’t laugh, it probably exists or will soon) practically markets itself. Who isn’t curious about that pitch? 

On the other hand, the communal storytelling vibe has an artsy, almost anthropological feel. Some projects outright describe themselves as experimental fiction on-chain, encouraging people to view them as a kind of interactive story rather than a typical investment. 

The community knows it’s ridiculous and that’s the point. Whether that counts as a new media art form or just extremely online guerilla marketing… Well, why not both?

When Lore Masks a Pump-and-Dump

There’s a dark side to all this storytelling. 

A great narrative can act like perfume on a pig, luring in buyers with a fun story while the token’s creators plan an exit. We’ve already seen a few spectacular narrative-driven rug pulls. In late 2024, the LIBRA token in Argentina rode a populist narrative (endorsed by presidential candidate Javier Milei, who hyped it as a solution to the country’s inflation woes) to a multi-billion valuation, only to crash 94% within hours of launch when insiders dumped ~$107M of liquidity. 

While the lore of freedom from fiat was strong, the reality was brutal. 

Even less outright scams reveal the fragility behind the façade. Many AI memecoins boast incredibly detailed roadmaps promising games, AI chat apps, metaverse integrations etc. within their lore. But will they ever deliver? Odds are slim and that utility remains vaporware. In reality, the devs don’t usually build any new AI protocols or models, they only use existing tools to create the illusion of innovation. 

From Shitcoins to Shared Universes

Looking at this trend, it’s clear memecoins have mutated into something much larger than one-off jokes. They’ve become shared universes, part comic book and part Ponzi scheme, co-created by communities and AI. For many projects, the lore isn’t a side dish anymore, it’s the main course, the dessert, and all the snacks in between. 

When you buy into a memecoin now, you’re often buying into a mythos. You’re not just a bagholder praying for a 10x; you’re a citizen of Pepperonia, or a foot soldier in the War of the Waifus, or a disciple of whatever weird cult narrative the devs (and their GPT-4) cooked up. 

In an odd way, these meme-token worlds scratch at something deeper about human nature: our love of stories, belonging, and yes, memes. Crypto has always been part economics, part sociology. Now it’s veered into improv theater. It’s as if a startup pitch deck, a D&D campaign, and a shitpost had a baby on the blockchain. And thanks to AI, that baby has an infinite arsenal of content to keep us entertained.