A memecoin created using OpenAI’s chatbot ChatGPT has skyrocketed in value, reaching a valuation of $638 million in just three months.
Named Turbo, the memecoin was developed by digital artist Rhett Mankind, who utilized GPT-4 to design the concept, tokenomics, and the smart contract. The project began with a modest budget of $69 and has since evolved into a popular memecoin in the crypto space.
On May 28, Turbo’s price surged to an all-time high of $0.009302, boosting its market capitalization to approximately $638 million, according to CoinGecko.
Turbo token 1-year price chart for the. Source: CoinGecko
Over the past three months, Turbo’s market capitalization has jumped from $27 million to over $600 million, marking a 2,262% increase.
Mankind documented the creation process on X (formerly Twitter), using polls to involve the community in decisions about the project’s name and mascot. This community-driven approach, along with the use of innovative AI technology, has contributed to Turbo’s popularity among investors.
The success of Turbo reflects a broader trend in the cryptocurrency market, where memecoins are gaining traction. After a month of low activity, the memecoin market is booming, with coins like CorgiAI (CORGIAI), Turbo (TURBO), and Grok (GROK) gaining attention.
These AI-driven meme coins have significant popularity, with investors considering these options to enhance their portfolios and achieve substantial returns.
Broader memecoin trend
The mania within the memecoin sector has certainly played a role in Turbo’s success. Turbo’s community-driven ethos, innovative use of AI, and transparent distribution model have resonated with investors.
Data from Santiment, gathered by Finbold, shows an increase in social volume, indicating heightened retail interest. Social indicators often peak before a trend reversal, suggesting the importance of monitoring such metrics.
Turbo price vs. Social Volume. Source: Santiment’s Sanbase
On May 28, data from Coinglass showed that four of the top ten tokens with the highest open interest(OI) in the crypto leverage market were memecoins.
A growing OI indicates bullish momentum in the market as leverage traders open more contracts in anticipation of price momentum.
Turbo trades on multiple exchanges, such as Gate.io, MEXC, and OKX, enjoying strong liquidity and trading volumes. Its total circulating supply is 69 billion, with a market cap now crossing $620 million.
However, investors should be aware of the risks. The hype around memecoins can fade, potentially leading to significant losses when demand decreases.
As Turbo continues to capture the crypto community’s attention, its future will depend on ongoing community engagement and market dynamics.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
