I am not shilling most of our liquid positions on twatter anymore but happy to experiment with it here

In next few weeks I will be posting the thesis, accumulation price range and position management for some of our more contrarian / under radar positions at sigilfund.com, I will pepper it with occasional degen bet

https://bittensor.com/

I am generally very sceptical about AI x crypto coins, as they are misguided efforts at best and outright grifts most of the time (deepbrainchain anyone?)

However one project stood out from the rest while doing the research.

Bittensor and $TAO

joker of all trades
https://twitter.com/Fiskantes 
sigilfund.com
zeeprime.capital


Accumulation: 
between Jan17 - Jan29 
Price range: 269 - 350 

Thesis: Bittensor is a protocol designed to incentivise ML/AI applications in form of subnets, comprised of validators and miners - two types of entities incentivised by TAO emissions to provide and verify ML/AI work

Bittensor ecosystem managed to attract large community of builders and supporters and keeps capturing majority of AIxcrypto mindshare.

On top of that it is being integrated by Web2.0 AI projects, notably HuggingFace: https://twitter.com/ClementDelangue/status/1750660815546380511

and Wombo.ai

Based on my best judgment after some interactions with the team, they are high integrity and ideologically driven to present an alternative to the current trend of AI being captured by large corporations and closed source business driven mindset (e.g. OpenAI no longer being "open")

With AI in general making innovation leaps and capturing lot of tech world's attention, it's safe to assume the narrative tailwind for any innovative AI projects wil continue to be strong.

$TAO already dominates this narrative, while not being listed on any major exchanges.

Potential listing on major CEXes provides additional price upside in the short-midterm.

In the longterm TAO can become the go to AI network for smaller players to save costs of spinning they own AI models. The need for TAO (mainly staked TAO to get more rewards to get more attractive for miners, secondly registration costs) would then drive the price up.

Potential upside from price of entry: 10-20x
Timeframe: 1-5 years (based on market rejecting or confirming it's historical cycle pattern)

Bonus: If Bittensor incentive model will be proven to be cryptoeconomically sound, we could see even non-AI use cases being integrated by various subnets. Bittensor could thus become the meta-layer for DePIN applications.

Thesis invalidation:

Bittensor validator/miner incentive model will prove to be dysfunctional. Bittensor will not manage to sufficiently scale upwards from its current 32 subnet cap. Alternatively successful subnets will have incentives to break away from TAO eco and spin their own independent networks