Why I Buy This AI Agent Infrastructure Project
At the moment, ‘AI agents’ dominate the narrative. I’ve explored this space in this post, like my investment in Virtual Protocol. In recent weeks, I kept looking for more infrastructure-type investment opportunities within the AI agent landscape.
I see myself as an investor, not a speculator. As such, I’m drawn to companies making the tools and shovels, not those chasing the gold. I have no clue if projects like Goatseus, Luna, AI16Z, or Zerebro will emerge as winners in the AI agent race. However, projects building the infrastructure that these AI agents rely on have a more favorable risk/reward ratio.
I believe I’ve found a gem with the potential to become core AI agent infrastructure:
Meet Subsquid – The Best AI Agent Infrastructure Play
Subsquid, headquartered in Zug, Switzerland, aims to be the Google for AI Agent Data. It collects, aggregates, and synthesizes vast real-time data that relevant blockchains in general and AI agents in particular create, use, and require.
Imagine a decentralized data lake, designed to make AI agent data accessible regardless of scale. Subsquid provides developers and teams with performant appchain data access, allowing them to understand precisely how their agents are being used, by whom, and how they stack up against competitors.
Subsquid Use Cases
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Usage statistics of thousands of in-game AI agents
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Performance and ROI stats of various DeFAI agents trading, investing and managing funds on behalf of their “owners”
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Market trends analysis for AI agent adoption across different sectors
For example, German-telco giant Deutsche Telekom has partnered with Subsquid, becoming a node partner to enhance the management of its decentralized data lake by running network nodes, which have been operational since earlier this summer (read more here).
Seeing cooperations with such high-level multinational really helps to increase both awareness and credibility!
Key Functionalities
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Blockchain Data Indexing: Simplifies access to AI agent data for developers, reducing the need for individual complex setups.
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Powering Explorers: Acts as the backbone for AI agent explorers, facilitating checks on transactions, account balances, and other agent activities.
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Real-Time and Historical Data APIs: Developers can leverage these APIs to build applications that require real-time or historical data from multiple AI agent infrastructures.
For example, the following companies already use SQD: Interface, Shiba Inu, Coin List, Aleph Zero, Catalog, Chainsafe, Hydration, and Deutsche Telekom (see above).
So, How Does Subsquid Make Money?
Subsquid generates revenue through:
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Subscription Fees from Chains: The open private network charges blockchains for data provision, making information free for consumers.
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SQD Token Locking: Users lock SQD tokens to increase their data access bandwidth, incentivizing token use and retention.
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SQD Cloud Service: Offers hosting for indexers where users pay based on computational resource usage, including free access to a dedicated SQD portal.
The SQD Token
The token for Subsquid is SQD, currently traded on just a few exchanges like for example KuCoin, Gate.io, Bybit, and PancakeSwap. With a market cap below $30 million at the time of writing, it’s in a very early stage.
https://crypto.news/deutsche-telekom-joins-data-indexer-subsquid-as-node-runner/
Trade Alert – What I Do
This is an ultra-high-risk trade, not recommended for crypto beginners. It could go to zero, but there’s also potential for significant gains in a short period. On Jan 11th, I purchased 200,000 SQD at $0.062 each, totaling $12,400 (I allocated $12,500, accounting for trading and bridging fees).
You can buy SQD on:
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Bybit
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Gate.io
I made my purchases on KuCoin and PancakeSwap. My strategy is to hold for 3 to 6 months. If the price doubles, I’ll sell half and let the rest ride, aiming for a potential $1 per SQD, which would represent a handsome return from current levels.
Trade Recommendation
This is not financial advice, but here is what I would do if I did not have any allocation yet:
- Buy SQD below $0,09, better below $0.08
- short-to-mid-term target (1-3mo): $0.15 – $0.25
- Sell half once it reaches $0.16
Conclusion
Investing in AI agent infrastructure like Subsquid could be akin to betting on the future network that powers all AI agents. With its current market cap and utility, SQD might just be the kind of foundational investment that scales alongside the growth of AI agents. However, remember the risk involved and invest wisely.
Age when reaching FI: 40 in 2018
Left the rat race: May 2017
Living in: Singapore
Number of kids: 2
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