Uncovering Web3's Haunted Corners: AI x Blockchain
Published 11/1/2025, 4:31:23 AM
This report examines several promising AI x blockchain projects that faced significant challenges and diminished visibility in 2024, but are now showing strong signs of resurrection and potential innovation in 2025. The analysis covers the reasons for their initial decline, the factors driving their current revival, and an evaluation of their long-term potential.
Summary of Identified Projects
The following AI x blockchain projects have been identified as fitting the "haunted corners" narrative:
- Friend.tech (AI x SocialFi): A decentralized social media platform on Base that tokenizes social interactions.
- DeepBrain Chain (AI x DePIN): A decentralized AI computing platform leveraging blockchain for GPU resource sharing.
- Bittensor (AI x Decentralized Machine Learning Network): An open-source protocol and Layer 1 blockchain building a peer-to-peer market for machine intelligence.
Detailed Analysis: Fading in 2024 & Revival in 2025
1. Friend.tech (AI x SocialFi)
Why it Faded in 2024:
Friend.tech experienced a rapid surge in popularity upon its August 2023 launch, driven by speculative trading of "keys" linked to influencers. However, this hype quickly dissipated in 2024 due to:
- Lack of Sustainable Engagement: The platform struggled to retain users and provide continuous value beyond speculative trading, leading to a sharp decline in daily active users.
- Token Performance: The
FRIENDtoken plummeted by 98% from its May 2024 high of $3.14 to $0.2962 by July 2024, indicating a loss of investor confidence. - "Soft Rug" Allegations: Developers faced accusations of a "soft rug pull" after selling a substantial amount of ETH ($52.4 million) and transferring ownership of smart contracts to a null address, making them immutable and raising concerns about transparency and future development.
- Strategic Instability: An initial announcement to migrate to its own chain, followed by a reversal to remain on Base, created uncertainty and contributed to token instability.
- BunnySwap Decline: The native decentralized exchange, BunnySwap, saw its Total Value Locked (TVL) drop significantly from $53 million to $10.6 million.
What's Reviving it Now in 2025:
Friend.tech is attempting a comeback in 2025, driven by:
- V2 Rollout & Feature Expansion: The launch of Friend.tech V2 brought new features like "Paid Group Clubs" which require the
FRIENDtoken for transactions. This update sparked an "activity resurgence" and contributed to a 200% price increase for theFRIENDtoken from its May 2024 low. - Enhanced Token Utility & Incentives: The V2 design introduced a new fee mechanism and high Liquidity Provider (LP) APY (up to 1400%), aiming to incentivize
FRIENDtoken usage and liquidity provision. - Community-Controlled Narrative: The project is emphasizing a narrative of
FRIENDas a "100% community-controlled token," signaling a shift towards decentralization and community empowerment to regain trust and drive adoption. - Base Ecosystem Integration: Its continued presence on the Coinbase-backed Base Layer-2 network provides accessibility and leverages a growing ecosystem for potential user acquisition.
Potential to Rise from the Dead:
Friend.tech's revival hinges on its ability to sustain user engagement and move beyond a speculative model. The V2 update and focus on community-controlled features are positive steps. However, past "soft rug" allegations and strategic missteps remain significant trust barriers. For it to truly "rise from the dead," it needs to demonstrate consistent value, rebuild community trust, and prove the long-term sustainability of its tokenomics beyond high APY incentives. The integration with the Base ecosystem provides a strong foundation, but the SocialFi space is highly competitive.
2. DeepBrain Chain (AI x DePIN)
Why it Faded in 2024 (Implicit Challenges):
While direct evidence of DBC "fading" in 2024 is not explicitly documented, the broader context of the AI x blockchain space during that period suggests potential challenges:
- Market Volatility & Funding: Many crypto projects, especially in gaming and nascent sectors, faced discontinuation or stagnation due to the bear market and funding difficulties in 2023-2024.
- "Illusion of Decentralized AI": Academic discussions in 2025 highlighted that many AI-based crypto tokens struggled with scalability, reliance on off-chain computation, and often replicated centralized AI structures without offering novel decentralized value. This likely led to a lack of significant traction for projects like DBC if they didn't overcome these hurdles.
- Maturing Landscape: The rapid growth of the AI + Crypto space in 2024 meant intense competition, potentially overshadowing projects that weren't actively innovating or marketing their unique value.
What's Reviving it Now in 2025:
DeepBrain Chain is demonstrating a strong push for revival in 2025, marked by:
- Technological Maturity & Expansion:
- Official launch of the DBC GPU computing mainnet with 1,998 GPUs by May 31, 2025.
- Scheduled "DBC AI Public Chain Launch" event in December 2024, leading into 2025, signifying a major technological milestone (DBC 2.0).
- DBC 2.0 is promoted as the "world's first AI public chain," providing decentralized AI infrastructure, EVM compatibility, and "one-click token issuance + free GPU computing power" to significantly reduce AI development costs and cycles.
- Robust Ecosystem Growth & Strategic Partnerships:
- Powering a growing AI ecosystem including DeepLink (AI cloud gaming), DecentralGPT (ChatGPT-like AI), XAIAgent (AI agent platform), and SuperImage (AI image generation). DeepLink reportedly has 2.7 million users, with 1.7 million holding DBC by February 2025.
- Partnerships with Google Cloud (February 2025) for global GPU resource access, and with ZkAGI for verifiable, private AI execution.
- Participation in the "2025 Global AI Pitch Summit" (January 2025) and a Metaverse and Web3 Alliance with Huawei and Polygon.
- Strengthened Tokenomics & Utility:
- The
DBCtoken is integral for GPU computing payments, gas fees, staking, and governance. - A deflationary model with significant token burns (120 million DBC burned by February 2025) aims to enhance long-term value.
- New incentives like token booster programs on platforms like WolfSwap are designed to increase trading volume and community engagement.
- The
Potential to Rise from the Dead:
DeepBrain Chain has a high potential for resurrection and powerful innovation. Its focus on decentralized GPU computing directly addresses a critical and expensive need in the AI sector, positioning it as a fundamental infrastructure. The concrete technological milestones (mainnet launches), strong ecosystem development, and high-profile partnerships indicate a serious commitment to growth. The clear utility of the DBC token within a growing ecosystem, coupled with a deflationary model, provides a compelling investment narrative. If DBC can successfully scale its GPU network and attract more AI developers, it could become a significant player in the decentralized AI space.
3. Bittensor (AI x Decentralized Machine Learning Network)
Why it Faded in 2024 (Implicit/Early Challenges):
Bittensor, despite its ambitious vision, faced several hurdles and a period of lower visibility in 2024:
- Complexity & Technical Barriers: Its revolutionary vision was often obscured by significant technical complexity, making it less accessible and understood by a broader audience.
- Incentive Misalignments: Before key upgrades, Bittensor experienced challenges with its incentive mechanisms, potentially leading to periods of stagnation and less optimized resource allocation within subnets.
- Stagnant Token Price: Prior to the dTAO upgrade, the
TAOtoken's price was described as stagnant, and the project was largely absent from the early 2024 AI Agent boom, suggesting a lack of widespread recognition or perceived utility at that time. - Early-Stage Experimentation: As a novel and complex experiment in decentralized AI, it inherently faced uncertainties in achieving widespread adoption and delivering tangible AI utility amidst its innovative, but sometimes complex, architecture.
What's Reviving it Now in 2025:
Bittensor is undergoing a significant revival and gaining substantial traction in 2025, driven by:
- Dynamic TAO (dTAO) Upgrade (February 2025): This major upgrade transformed Bittensor's tokenomics by introducing liquidity pools for subnet-specific tokens (ALPHA) paired with
TAO. This aims to make the network more efficient, fairer, and to optimize token issuance and liquidity by creating a market-driven resource allocation mechanism. - Quantum Computing Integration (October 2025): The launch of Subnet 48, which integrates real quantum processors into the Bittensor network, represents a groundbreaking technological advancement. This positions Bittensor at the forefront of combining decentralized AI with cutting-edge computing.
- Halving Event (December 2025): Similar to Bitcoin, Bittensor's first halving event is anticipated to reduce daily
TAOemissions by 50%, creating scarcity and acting as a strong bullish catalyst for price discovery. - Growing Institutional Interest: Mentions of Grayscale filing for a Bittensor Trust and increasing institutional adoption signal growing legitimacy and potential for significant capital inflow.
- Expanded Use Cases & Ecosystem: Bittensor is broadening its scope beyond core machine learning tasks to encompass a wider range of "digital commodities," with a growing number of specialized subnets catering to diverse AI functions.
- "Bitcoin of AI" Narrative & Strong Community Sentiment: There's a powerful narrative positioning
TAOas the "Bitcoin of Intelligence," highlighting its decentralized, open, and incentivized approach to AI, which strongly appeals to the Web3 ethos of decentralization. - Robust Market Performance & Optimistic Predictions:
TAOhas shown strong price performance in 2025, with a reported price of $455.37 USD and a $3.97B market cap as of March 2025, representing a 1397% growth from its all-time low. Price predictions forTAOare overwhelmingly optimistic for 2025 and beyond.
Potential to Rise from the Dead:
Bittensor exhibits very strong potential to not only "rise from the dead" but also emerge as a powerful innovator. Its unique approach to decentralizing AI development, coupled with strategic upgrades like dTAO and the integration of quantum computing, positions it as a leader in the intersection of AI and blockchain. The Bitcoin-like tokenomics (scarce supply, halving events) and growing institutional interest add significant credibility. The project is addressing core concerns about centralized AI by offering an open, permissionless, and incentivized marketplace for intelligence. If Bittensor can continue to attract top AI talent and expand its subnet ecosystem to deliver tangible, real-world AI solutions, its TAO token could see substantial appreciation and the network could become foundational for the future of decentralized AI.
Key Insights and Actionable Takeaways
General Observations:
- Adaptability is Key: Projects that are successfully resurrecting are those that have adapted their models, introduced significant technological upgrades, or refined their value proposition to address previous shortcomings and align with evolving market demands.
- Tokenomics Reinforcement: A clear and sustainable tokenomics model, often with deflationary mechanisms or enhanced utility, is crucial for renewed investor confidence and long-term viability.
- Ecosystem & Partnerships: Strong ecosystem development, strategic partnerships (especially with traditional tech giants or other blockchain projects), and active community engagement are vital drivers of revival.
- Addressing Centralization Concerns: The core ethos of Web3—decentralization, transparency, and user ownership—is a powerful narrative for AI projects, especially as concerns about centralized AI power grow. Projects that genuinely embody these principles are gaining traction.