Whale Suffers Massive Loss After Turning $23M Into $2.58M on AI Agent Tokens

A major crypto investor has suffered losses exceeding $20 million after a large bet on AI agent tokens unraveled, according to on-chain data.

Blockchain analytics firm Lookonchain reported that the whale initially deployed roughly $23 million across several AI-focused tokens. As market conditions deteriorated, liquidity dried up and exit options narrowed, amplifying downside risk. The portfolio’s value eventually collapsed to about $2.58 million, representing a drawdown of nearly 89%.

Lookonchain flagged the trades as some of the poorest recent performances among Base chain AI tokens. Rather than offering stability, the sheer size of the positions intensified losses once prices began to slide.

Losses Concentrated Across Six AI Tokens

A closer look at the wallet activity shows that the damage was spread across six AI agent tokens, each suffering steep declines.

FAI accounted for the largest dollar loss, falling more than 92% and erasing close to $9.9 million. AIXBT followed with a drop of roughly 84%, resulting in losses of approximately $7.8 million.

Elsewhere, BOTTO slid over 83%, cutting about $936,000 from its value. POLY declined nearly 99%, removing approximately $839,000.

The sharpest percentage drop came from NFTXBT, which lost just over 99% and around $594,000. MAICRO also suffered heavily, falling almost 90% and shedding roughly $381,000.

Together, these positions explain nearly the entire collapse of the portfolio.

Wallet Reduced to Residual Assets

Following the sell-off, the whale’s wallet now holds minimal value. Data from Arkham Intelligence indicate a remaining balance of $3,626.11, primarily composed of ETH, with minor allocations to MONK, BYTE, and SANTA.

The residual holdings suggest the investor has effectively exited AI agent tokens, locking in a near-total loss on the original investment thesis.

The whale’s losses reflect a wider downturn across the AI crypto sector. On-chain data shows the segment plummeted by roughly 77% earlier in 2025, as speculative interest waned.

AI agent tokens have since slipped below $5 billion in combined market value. Current estimates place total capitalization at around $3.28 billion, down 1.1% over the previous day. Most AI-related tokens have moved lower in tandem, reflecting systemic pressure rather than isolated project failures.

From Breakthrough Narrative to Reality Check

Not long ago, AI agents were promoted as a transformative leap for automation. Industry players, including Kore.ai, highlighted their potential to complete complex tasks with little human oversight.

By late 2025, however, companies experimenting with highly autonomous systems began reporting mounting challenges. Limited control, inefficiencies, and unpredictable outcomes increasingly overshadowed earlier optimism.

This shift coincided with a dramatic market reversal. After peaking near $16 billion, AI agent token valuations dropped more than 90%, with many projects failing to meet development expectations.

Differing Views on Long-Term Prospects

Despite the steep decline, some industry voices remain cautious rather than dismissive. Coin Bureau co-founder Guy Turner has argued that the sector’s downturn does not eliminate its long-term potential.

According to Turner, future growth could depend on clearer regulation, institutional participation, and renewed retail interest. He has also suggested that involvement from governments and major technology firms could help legitimize the space. Labeling AI agent tokens as simple meme assets, he argued, overlooks their broader ambitions.