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When I am openly bullish on a project, it’s because they check a number of boxes for me. My criteria has been a successful model of investing into crypto projects for years. I will try to keep it as simple as possible but this project goes beyond checking my boxes and is part of a broader narrative I see playing out over the coming years and narrative trading can be extremely profitable if you are correct.

This will be a comprehensive writeup, essentially covering everything from:

• the project’s function

• investment criteria

• their airdrop

• sustainability and the broader narrative I see developing

Here is a broad overview of the project presented by @MTorygreen at the Solana Breakpoint conference in 2023.

Source: https://twitter.com/ionet/status/1720813946641220079

1. What is IO.net?

IO.net is a decentralized platform designed to transform how AI startups access GPU computing power. It operates on a model called DePIN (Decentralized Physical Infrastructure Network) allowing GPU owners to offer their unused processing power to others. This setup not only makes GPU resources more affordable and accessible but also lets participants earn by sharing their assets. The platform is integrated with Solana blockchain technology, ensuring secure and efficient transactions, and supports various machine learning frameworks.

In short, IO.net leverages blockchain to democratize GPU computing, offering cost-effective access to resources while enabling GPU owners to monetize their idle assets.

At their current rate of growth, sitting on +750,000 GPUs, they are on track to reach 1,000,000 GPUs in Q3-Q4. Especially with the enormous amount of partnerships being created with projects such as:

@rendernetwork @Filecoin @GaiminIo @NuklaiData @ritualnet @AlloraNetwork @atorprotocol @BVMnetwork @Dbunker_Network @dstackai @wombo @exa_bits

They recently closed a $30M Series A funding round at a $1B FDV.

Source: https://www.reuters.com/technology/ai-focused-blockchain-startup-io-research-raises-30-mln-series-funding-round-2024-03-05/

2. Investment Criteria

• Demand

Artificial Intelligence is not some flash in the pan hype narrative. Ive been saying for a while that it will become an integral part of society, only increasing in demand and required compute. Every aspect of human life as we know it will be completely transformed by this technology.

GPUs are "the scarcest commodity in the world," according to Shayon Sengupta, investment partner at Multicoin Capital, one of io.net's investors. He said industry analysts are "still radically underestimating" how much computing power will be needed to fuel the next generation of AI apps. Io.net has the potential to democratize GPU computing, he added.

Source: https://www.statista.com/outlook/tmo/artificial-intelligence/worldwide#key-market-indicators

• Tokenomics

The project just recently released their tokenomics and they are incredibly bullish in my opinion. They remind me of Celestia which forced early investors to wait up to a year after TGE to get any of their allocation. This type of delayed gratification is a good sign that a project is legit and plans on being around for the long run instead of allowing KOLs to dump relentlessly on launch essentially destroying the chart and investor confidence.

Source: https://developers.io.net/docs/io-coin-1#io-tokenomics

Study the correlation between healthy tokenomics and price action. Celestia went from $0.50 to $21 in only 3 months. Besides the staking, I believe a large portion of that 4100% move was due to no insider selling pressure.

• Marketshare

Launching at a $1B FDV that automatically makes IO the 6th largest AI project on TGE and a top 100 project in all of crypto.

Valuation Estimate: FDV-to-Chip Ratio

Source: https://research.mintventures.fund/2024/04/08/a-new-solana-based-ai-depin-project-a-brief-analysis-of-upcoming-tokenlaunch-io-net/

• Narrative

IO.net is a titan when it comes to narrative strength:

1. Rising demand for compute in the face of a worldwide deficit

2. Cost efficiency (90% cheaper than traditional centralized providers)

3. Rapid deployment

4. Censorship resistance (No KYC or Contract Agreements)

5. Incentive mechanisms

6. Decentralized nature via DePIN

7. Solana blockchain for fast/cheap transactions

8. Regulation resistant due to its Permissionless nature

3. Airdrop (completely free)

• Galxe Quests

https://app.galxe.com/quest/io.net/GCD5ot4oXP

• Operate a Node

https://app.galxe.com/compass/io.net

4. The Bigger Picture

Since I am heavily involved in the AI space I have personally seen the deliberate deceleration of AI LLMs over the past few years. Regulatory legislation attempting to slow down the rapid pace of technological progression. Countries & private interest groups all over the world are pushing for regulation of AI which in my opinion will allow open-source models to flourish.

Source: https://time.com/6898967/ai-extinction-national-security-risks-report/

Just a few days ago Meta released their Llama3 70B parameter to the public along with data regarding their 400B parameter model and it is impressive. The rate of progression for open-source models is becoming exponential. Given this trend continues, which I believe it will, this puts projects such as IO.net in a beneficial position to capitalize on demand. In time I believe these types of permission-less AI infrastructures will become invaluable, not just for open-source but also for closed-source companies looking to reduce their overhead.

We are undoubtedly in the midst of the Fourth Industrial Revolution. One where power structures in place shift as information becomes readily available to the masses.
I believe we are witnessing the rise of compute as a currency.

IO.net’s TGE is on 4/28/24… brace yourself anon.