Interpreting the roller coaster market of the AI sector: Is it the big investors dumping the stock or is Nvidia falling?
Last weekend, the AI sector experienced a roller coaster ride.
On Saturday, the OpenAI board made an announcement on Twitter, announcing the completion of a review conducted by law firm WilmerHale and that Sam Altman and Greg Brockman would continue to lead OpenAI. Subsequently, affected by this news, the encryption markets enthusiasm for the AI sector was further boosted. AI projects such as Render (RNDR), Fetch.ai (FET), SingularityNET (AGIX), Arkham (ARKM), etc. have all increased by more than 15% in 24 hours.
Worldcoin (WLD), of which Sam Altman is the founder, hit a new all-time high of over $10, with a 24-hour increase of over 40%. The decentralized streaming media platform LPT, which doubled in 3 days due to Sora, a large video generation model launched by OpenAI, also rose sharply, breaking through $26 in a short period of time, with a 24-hour increase of more than 65%.
Related Reading:Sam Altman returns to OpenAIs board of directors, and the AI sector is experiencing general gains again》
However, after attracting a wave of expectations from the market with its strong general rise, the AI sector suffered a general decline the next day.
Why did it fall?
Major investors who made ten times the profits withdrew from the market.
Why did it suddenly drop? The community has speculated that one situation may be that ARKMs major qklpj.eth stops taking profits.
It is known from community discussions that qklpj.eth has been holding ARKM for the past eight months, having previously transferred all 10.09 million ARKM ($3.16 M) to Binance in November 2023 at a price of $0.386. Last weekend ARKM reached a maximum of $3.9.
According to Ember Monitor, on March 2, a newly created address withdrew $2.99 million ARKM from Binance, worth over $7 million. The GAS of this community address comes from the 0x 1729 address, and the 0x 1729 address is related to qklpj.eth. The next day, the new address (0x 81 DA) suspected to be qklpj.eth continued to withdraw 1.01 million $ARKM ($2.51 M) from Binance. It has withdrawn a total of 4 million $ARKM worth over 10 million from Binance in more than a day.
After ARKM achieved an increase of over 38% on Saturday, qklpj.eth transferred the previously proposed 4 million ARKM to Binance on Sunday. If sold at that time, qklpj.eth would have made approximately 4 million ARKM through these three transactions spanning 8 days. $2.8 million.
But this is only part of the positions that were transferred back after the transfer. The observable holdings of qklpj.eth are 10.09 million ARKM, and the purchase price is $0.386. If both were sold at the high point, its cost of less than $4 million would have brought it a gain of nearly $40 million.
Nvidia closed down more than 5%
In addition to large investors smashing the market, Nvidias stock plunge last weekend is also an explanation. Last Friday, Nvidia rose more than 5% intraday but closed down 5.6%, the largest single-day drop since May 31 last year. It is reported that this single-day decline also wiped out Nvidias market value of approximately US$130 billion, which is one of the largest single-day market value evaporation records in the history of the US stock market.
The current narrative of AI projects in the encryption field is inseparable from the technology communitys optimism about the advantages of NVIDIA chips. Motif suddenly fell sharply after rising all the way. This shock will naturally be conveyed to the AI sector, just because of Sams return yesterday OpenAIs board of directors halted losses.
AI token rise and fall
The AI-driven data analysis platform Arkham (ARKM) fell below $3, falling 17.5% in 5 minutes yesterday, and is now quoted at $3.1, falling more than 20% in 24 hours.
Worldcoin (WLD) fell back below $10, falling more than 20% in 24 hours, and is now quoted at $9.3;
AI agent Fetch.ai (FET), distributed storage network Arweave (AR), etc. also experienced declines ranging from 10% to 15%;
The AI-driven UGC platform NFPrompt (NFP) has fallen by more than 15% in 24 hours and is still falling, and the decentralized AI market SingularityNET (AGIX) has also fallen by more than 10% from its high point.
