Opinion by: Sandy Peng, co-founder of Scroll
The Rise and Fall of AI Agents
Initial Coin Offerings (ICOs) were a revelation in decentralized crowdfunding, but the 2017 ICO boom and bust tarnished their name forever. Non-fungible tokens (NFTs) were groundbreaking for digital art and collectibles, but the fallout from the 2021 mania caused the public to reflexively associate “NFTs” with “scams.” We have now entered 2025, and the next innovative technology set to be forever tainted by rampant overhyped shilling has arrived: AI agents.
The Hype is Real
If somehow they were left untainted, AI agents could grow to become some of the most powerful tools in the industry. DeFi AI agents can process real-time data to automate trading and optimize LP management. Intent-based AI trading agents can interpret user intentions and execute trades that align with a user’s financial and belief-driven goals. Autonomous decision-making agents can make low-level, repetitive decisions while leveraging blockchain for transparency and accountability. AI helpers and advanced chat boxes could assist with the less user-friendly aspects of onboarding to Web3 and decentralized finance (DeFi).
The Bust will be Real
AI agents will be the new “buzz” that radiates out from crypto to the rest of the world throughout 2025. We will see a high cadence of new concepts dropping every other day and an “agent” advertised for every minor aspect of your life. As the market picks up, it will become more complex and more challenging for investors to sort legitimate projects from the scams. The ICO period saw projects promising to “solve all the world’s issues” by creating an ERC-20 token and a one-page white paper. The NFT peak saw thousands of generative “art” projects promising endless benefits to their holders. Similar false promises, money grabs, and FOMO-driven marketing will define the AI agent era.
The Result
Every project building legitimate AI agent technology will be background noise in the influx of shill money grabs over the next 12 months. Revolutionary tech will be shaded by memecoin generators, glorified copy traders, and hypercharged gambling bots. Once the dust settles, there will be a light at the end of the tunnel. Although ICOs are dead, the use case of blockchain for fundraising has remained, and the remnants of its design are still tied to multiple DeFi use cases. NFTs are starting to have their resurgence, giving signs of long-term maturity. AI agents will likely follow a similar pattern. The technology will over-bloom in the short term, with many retail investors being turned away, but in the long term, it will return with staying power.
Conclusion
In this opinion piece, we have explored the potential of AI agents in the DeFi space. While the technology has the potential to revolutionize the way we interact with decentralized finance, we must be cautious of the hype surrounding their introduction. We must also be aware of the potential pitfalls and scams that will inevitably arise as a result of the overhyping of AI agents. By understanding the potential and the pitfalls, we can work towards creating a more sustainable and responsible future for AI agents in DeFi.
FAQs
Q: What are AI agents?
A: AI agents are software programs that can perform specific tasks, make decisions, and interact with users in a more intelligent and autonomous way.
Q: What are the potential uses of AI agents in DeFi?
A: AI agents can be used for tasks such as automating trading, optimizing LP management, and making low-level, repetitive decisions while leveraging blockchain for transparency and accountability.
Q: What are the potential drawbacks of AI agents?
A: The potential drawbacks of AI agents include the risk of overhyping, false promises, and FOMO-driven marketing, which can lead to a backlash and a loss of trust in the technology.
Q: What is the future of AI agents in DeFi?
A: The future of AI agents in DeFi is likely to be shaped by their ability to adapt to changing market conditions and user needs. As the technology continues to evolve, it is likely to become more sophisticated and more integrated into our daily lives.
