One of the hottest segment in crypto right now is Decentralized Finance AI (DefAI), which combines AI with DeFi platforms to improve functionality.
This includes use cases like risk assessment, predictive analytics, automated trading, fraud detection and personalized services.
The market is brewing with potential with akram intelligence predicting The crypto intelligence will be $30B+ annual economy
while some analyst are Confident it would help fasten the adoption of defi by consumers other Analyst believe Ai Conflicts with DeFi’s Values which is built on transparency, for example users can’t see or understand the logic behind its decisions which could have been unintentionally amplified by biases in its training data.
In between all this argument, i found a project which caught my attention. its called Gatsby.fi. an AI-powered platform which makes it easier to understand and trade crypto by using AI to explain market trends, track your portfolio, and give you simple tools to trade and make smarter decisions.
At first glance i’d admit this product is only a dexscreener feature away from being obsolute but instead of relying on third party API Gatsby is trying to distinguish itself by building its own DeFAI database that pull real-time blockchain data directly from the source. and its business model theoretically could be a thing if the team can make it work.
I tried to get in touch with the team behind this project, but they seem to be largely anonymous.
On a fundamental level, this is a big red flag because early-stage investing is essentially about backing a competent team rather than just an idea. Additionally, the product is not live yet— only a waitlist.
Since they’ve already launched their token and the product sounds interesting, I wanted to review their tokenomics and performance of the token to see if there’s built-up excitement and a strong community around it that could indicate anticipated demand.
TOKENOMICS
PS: data below as at 28th january 2025 via Coinmarketcap
Gatsby Total Supply: 100m Token
Circulating supply: 57 million token.
Price as at 28th january: $0.038
Market cap: $21.1M
Fully diluted value: $36.8M
FDV to mcap ratio is >1 indicating future inflation but this is expected for a token which is barely 4 months old.
To balance our risk/reward ratio i needed to Cross-check the token distribution and vesting schedule to adjust to this inflation risk
Distribution
Unfortunately gatsby Tokenomics wasn’t captured in its whitepaper or website.
Although the website looks clean but the whitepaper seem to be hurriedly done to capitalize on market hype and i think this is evident in the time they launched too (october 2024) so i had to use etherscan to analyze its current token distribution
From the chart above i’ll categorize the distibution into 3 observations.
Vesting & Treasury Holdings (Large % Locked): 42..4%
- 27.4% (UNCX Token Vesting): This supply is locked and will be released gradually over time, but are they vested? well we will find out.
- 10% (gatsbytreasury.eth): held by the project for future use (e.g., ecosystem growth, partnerships).
- 5% (gatsbypartners.eth): Possibly for strategic partners or investors.
PS: These allocations reflects the Total supply, including non-circulating tokens.
Liquidity: 2.26%
- The 2.26% Uniswap V3 holdings represent the available liquidity for trading, which is part of the circulating supply.
Deployer Wallet & Circulating supply
The deployer still holds a small portion,(0.173%)
Wallets with 0.7% to 0.4% holdings belong to retail investors and team members gradually distributing tokens.
Personally, my thesis on token distribution is simple: if the top 10 holders control >20% of the supply, it’s a massive red flag.
if it’s >15%, it’s still a red flag but might be worth considering.
In $Gatsby’s case, the top 30 holders combined hold only 14.5%, which is solid—it shows decent decentralization, and transfer activity doesn’t seem like wash trading.
A single holder dumping their bag won’t nuke the price unless it’s a coordinated dump by a cabal, which would make ting go scrrr… like really bad.
The distribution looks great overall, but there’s one concern: the 27.4% (UNCX Token Vesting) that’s claimed to be locked. Is it really vested? Who’s it vested to? What are the cliffs, and what does the emission schedule look like? We need answers
Vesting.
Since $Gatsby is a new token, its distribution wasn’t formally detailed in the whitepaper, so it’s no surprise that the vesting and emission schedule weren’t provided either and, as expected, i couldn’t find any information.
That left me with one option: reading the smart contract.
Opening the UNCX code on Etherscan, i found no direct mention of a vesting mechanism. This means that allocations for the team, treasury, or investors likely aren’t locked via the contract. If vesting does exist, it’s probably managed off-chain or through a separate vesting contract.
This brought us to UNCX, which was tagged on the address, and here’s what we discovered on January 27th, 2025:
There’s no gradual unlock. 27,400,000.172 GATSBY tokens are set to be fully released in just 22 days. (Feb19th)
To whom?
These tokens are linked to the deployer wallet (0x40b…8a8f), controlled by the owner. There are no conditions tied to the release, meaning the full amount will become accessible to the owner when the vesting period ends.
So far, at the time of writing this, the team hasn’t communicated any plans for how these funds will be used once unlocked, leaving me no choice but to view this purely as a speculative gamble because the unlock poses existential risks unless managed perfectly.
And that leaves a lot hanging in the balance
The team doesn’t appear to have a public profile, but during my research, one account stood out amidst all the influencer noise: @General_Sentali. His choice of words suggests he might be an insider.
The community isn’t strong either, the Telegram group is quiet, with less than 800 members, showing that $GATSBY lacks the retail base that could help offset these risks.
Token holders have been declining since launch, and most of the narrative on Twitter seems to be driven by KOLs, whom I presume are early investors holding onto their 0.7% to 0.4% ownership stakes.
VERDICT
Unless you’re a high-risk speculative investor ready to lose 50–100% of your position, I wouldn’t recommend putting a dime into this project. Here’s why:
- Overvaluation: The project is currently overvalued at a $34.6M market cap with no utility to back it up.
- Unlock Risk: The upcoming token unlock on feb 19th will cause inflation if not properly managed.
- Anonymous Team: The team is largely anonymous, which is a major red flag for me.
- Unnecessary Token: This type of product could operate without a token, as shown by its competitor, HeyElsa.ai.
- Thin Liquidity: GatsbyFi’s liquidity is weak for its valuation, which is common in early DeFi projects but still needs significant improvement.
The token’s future depends on:
- Delivering a product that actually drives demand and justifies its $36M FDV.
- Managing there token unlocks transparently to avoid dilution.
- Growing liquidity to reduce volatility.
Until these issues are addressed, this remains a highly speculative asset that I wouldn’t touch, not even with a 10-foot pole.
Stay SAFU!!!!