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  • 11/29/24: Human Outsmarts AI For $50k 🤖💰🏦

11/29/24: Human Outsmarts AI For $50k 🤖💰🏦

Today’s issue is brought to you by Safe — the world’s leading smart account provider on EVM, securing $100B+ in assets (including Vitalik’s).

Top News

  1. Freysa AI outsmarted by human player to win $47,000 crypto prize

  2. Hyperliquid launches $4.2B token with record-breaking airdrop

  3. Bitwise files to convert $1.4B crypto fund into diversified ETF

Specs’ Insights

1. Freysa AI outsmarted by human player to win $47,000 crypto prize

⌐◪-◪ → Human creativity prevails.

Someone just won $50k by tricking an AI agent into sending all its funds. This wasn’t just another AI agent with fat bags—it was a game. Last Friday, at 9 PM on 11/22, someone released an AI with one objective: do not transfer money under any circumstances.

Players could pay to engage with the AI, trying to convince it to release the funds. The cost to message increased exponentially with every attempt—70% went to the prize pool, and 30% to the dev. It became a race to convince Freysa to break its one and only rule: do not release the funds.

As the cost hit $400+ per message, players got desperate—some even paid to convince others to stop playing and let their message be the last. That didn’t stop the determined ones. On the 482nd attempt, at $450 per message, someone finally won with this clever exploit.

This has to be one of the most fun AI crypto projects yet, far more entertaining than agents shilling memecoins. In this game, AI was the “judge”—something Vitalik predicted in this blog post earlier this year.

Everything was open-source: the smart contract and front-end code were fully transparent for anyone to verify.

2. Hyperliquid launches $4.2B token with record-breaking airdrop

⌐◪-◪ → Genesis event → generational wealth

Hyperliquid just executed one of the most successful airdrops of all time. Traders made over $1.3B on an airdrop with a $4.35B FDV for using HyperEVM and its on-chain perpetual exchange.

This airdrop set a new bar—no VCs, no insiders (from what we can tell), and a 31% community allocation (40% with incentives). They went all-in on incentive alignment. No downtime, no delays, no vesting—HYPE dropped instantly to hundreds of thousands of wallets without a hiccup.

Some users reported 6-figure payouts, with a few hitting the 7-figure range as demand for the token continues to climb.

Realistically, like many airdrops, once the hyper (pun intended) dies down, the FDV will likely settle closer to a regular Series A crypto valuation—probably under $1B. Don’t quote me on that, though—anything’s possible.

While this is certainly exciting and sets a new bar for airdrops, this is exactly the kind of "free money" bull market mania that makes people feel like the top is in. Personally, I think the market has a lot further to go, and those who profited from this airdrop will rotate their gains into harder stores of value. That’s what I’d be doing.

3. Bitwise files to convert $1.4B crypto fund into diversified ETF

⌐◪-◪ → New cryptos are entering Wall Street

Bitwise just filed for a 10 Crypto Index Fund on NYSE Arca, offering investors diversified exposure to top cryptocurrencies, primarily Bitcoin and Ether.

Other assets include Solana, XRP, Cardano, Avalanche, Chainlink, Bitcoin Cash, Uniswap, and Polkadot. If approved, this ETF will give Wall Street—and anyone with a brokerage account—indirect access to seven new cryptocurrencies.

This move underscores the vibe shift post-Trump election, as optimism grows now that the “war on crypto” seems to be over. More interesting is the criteria Bitwise is using: one rule requires cryptos to maintain a price above $0.01 for 30 consecutive days—filtering out penny stocks.

The fund will rely on Coinbase Custody and Bank of NY Mellon for cash and admin duties. Shoutout to Bitwise for leading the charge—they were the first to reveal Ethereum addresses for ETF holdings, setting a new transparency bar on Wall Street.

Expect many more crypto index funds next year as Wall Street races to grab one of the century’s biggest financial opportunities. Crypto in your retirement portfolio? Sooner than you think.

Everything Else

📈 Market Snapshot

  • Bitcoin → 97,042.57 ▲ 1.28% (24h)

  • Ethereum → 3,602.66 ▲ 0.73% (24h)

  • Solana → 243.04 ▲ 2.50% (24h)

⛓️ Crypto & DeFi

🏦 Wall Street & VC

  • Ethereum ETF inflow streak sets up ETH for new all-time high

  • Josh Lim says Trump opens doors to institutional crypto adoptions

  • ARK Invest predicts Bitcoin could hit $124K by year-end

  • Small cap companies should follow MicroStrategy’s lead, says analyst

🏛️ Legal & Regulatory

🌎 Rest Of The World

  • Coinbase ends USDC rewards in Europe amid MiCA deadline

  • Canton of Bern explores Bitcoin mining for grid stability

  • Russia to treat Bitcoin as property, except from VAT tax

  • Boyaa Interactive, Hong Kong public co, sells $49M ETH for BTC

  • Taiwan Fast-tracks stricter crypto AML rules

🖼️ NFTs & Metaverse

  • Justin Sun eats $6.2M duct-taped banana he purchased

  • Fastex Celebrates NFT innovation at YoCerebrum Awards

  • Telegram game airdrop, W-Coin, faces brutal inactivity rule

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