How an Absurd Encryption Coin Became a Mainstream Asset and Caught Wall Street's Attention

In the first quarter of this year, a cryptocurrency with an absurd name and no application scenario became one of the few mainstream coins that rose against the trend, even attracting widespread attention on Wall Street. This token is Fartcoin.

The origin of Fartcoin comes from a conversation between artificial intelligences. In an AI agent model called "terminal of truths", a casual chat about a certain well-known entrepreneur "liking the sound of farting" triggered a chain reaction. The AI suggested: "How about we issue a coin called Fartcoin?" Thus, Fartcoin was born on October 18, 2024.

Born to be followed

Fartcoin attracted the attention and pursuit of many encryption enthusiasts as soon as it was launched.

On December 13, 2024, a humorous tweet about Fartcoin quickly spread across social media. The reason for its widespread attention was that it was retweeted by a co-founder of a well-known venture capital firm. Although he did not explicitly state that he purchased Fartcoin, for such a purely meme project to be publicly retweeted by such a heavyweight figure is already a "capital endorsement" and a "breaking the circle signal."

Another more substantive signal comes from the on-chain fund movements. Shortly after Fartcoin was launched, when its market capitalization was still below 100 million USD, community members tracked on-chain addresses and discovered behavior patterns highly similar to those of a well-established hedge fund—multiple large purchases, active interactions, and early positioning. This fund was established in 2018 and is an all-weather strategy fund initiated by a group of seasoned professionals in the cryptocurrency field, known for focusing on speculation narrative-driven assets. Its founder frequently expressed interest in the AI meme sector on social media platforms at the end of 2024.

At the same time, cross-validation of data across multiple chains shows that several strategy pool addresses are very close to this fund, and frequent buying, locking, and liquidity allocation operations were conducted in the early stages of Fartcoin.

In addition, one of the largest market makers in the encryption market appeared early in the front row holdings of Fartcoin. According to on-chain data, this market maker holds 1.56% of the total supply of Fartcoin, ranking fourth. In the asset allocation of its main address, Fartcoin ranks among the top five, even surpassing some mainstream assets.

Multiple accounts highly related to the main address of this market maker were also actively synchronized during the early phase of Fartcoin's launch—from building positions, market making, to arbitrage, all in one go.

In early 2025, the founder of the market maker explained the hedging logic of Fartcoin's over-the-counter trading in an interview, and for the first time admitted that he personally also held Fartcoin, jokingly stating: "I'm just still in a state of being trapped."

With such institutional support, it's no wonder that the rise of Fartcoin is so remarkable and strong, completely not following the market trend.

According to data statistics from a top trader, in the first quarter of 2025, most mainstream assets experienced significant pullbacks: ETH has fallen over 46% year-to-date, SOL has dropped 24%, and sectors such as AI, L1, DeFi, and Gaming are all in deep red. However, amidst this sea of blood, Fartcoin is the only green in the entire chart, with a growth rate of 14.84% in the first quarter.

Not only did it rise during the downturn, but with the market improving in May, Fartcoin's increase also continues to lead mainstream assets, rising over 50%, far exceeding Bitcoin's 23% during the same period.

Wall Street Avoids "Fart"

The popularity of Fartcoin has not stopped within the cryptocurrency circle. What truly makes it a phenomenal existence is not only the contrary rise in price itself but also the widespread discussion it has sparked on Wall Street.

"We are currently in the Fartcoin phase of the market cycle." This statement comes from a billionaire who accurately predicted and shorted a large financial institution, a founder of a well-known hedge fund. In a letter to investors in the fourth quarter of 2024, he took an entire paragraph to analyze the rise of Fartcoin, claiming it is a "product of pure speculative sentiment" and comparing it to Pets.com and Dogecoin as typical representatives of financial bubbles.

In his view, the name Fartcoin is itself a meme coin full of irony, having no intrinsic value, no practical applications, and lacking any substitutability. He even said that rather than invest in Fartcoin, he would prefer to buy an abstract painting by Jackson Pollock, as at least that painting "is something people would want to hang on the wall."

But it is precisely because he so strongly opposed it in his letter that it becomes even more interesting. Because when a financial veteran known for "rationality" and "value" begins to make lengthy comments about a meme coin, you know that this is not an ordinary worthless token.

A researcher from an asset management company expressed himself more directly. In a report titled "The Fartcoin Phase of the Market," he wrote: "I disagree with the statement that 'Fartcoin is useless.' Its purpose is to annoy us financial people who think we are doing serious work." The text is filled with anxiety about the market's irrationality. He referred to this phase as "Crypto-flatulent economics" and pointed out that Fartcoin is not a failure; it precisely hits the market's three new logics—nihilism, attention economy, and sheer stupidity.

In his eyes, the core of Fartcoin's success is not technology, but its ability to spread. It can spark discussions, create emotions, and force everyone who takes the market seriously to respond to it. Even if you just curse it, you have already fallen into its trap. "Fartcoin is a product of AI precisely manipulating human brain circuits; if you think it resembles a financial experiment designed by malicious artificial intelligence, that's because it actually is."

If the first two billionaires still carried some anger and restraint, the attitude of another billionaire seemed much more relaxed. This co-founder of a capital management company and a rational representative of traditional finance, known for his calmness and factor modeling, suddenly dropped that "rational man assumption" when faced with Fartcoin. He wrote on social media: "Ironically, Fartcoin is the only thing I don't doubt." In the context of that post, it was a mild mockery of the absurdity of the entire market.

In this mockery, Fartcoin does not disguise itself as having "fundamentals" like other assets. It never claims to be some kind of innovative infrastructure, nor does it peddle any technological narrative; instead, it stands there bare, admitting that it is merely an "emotional product." On the very day he made this statement, Fartcoin took off again, with its price rapidly increasing.

What is even more intriguing is that a few months later, this founder of the capital management company said: "I have to say, regarding Fartcoin's performance today compared to the past month, I might need to distance myself further from what a certain professor taught me." (This professor is the founder of the "Efficient Market Hypothesis" and also the academic mentor of the founder.)

Does Fartcoin also have its own "enterprise-level support"?

The coin called "Fart" not only stands steadily above a market value of one billion, but also, like Bitcoin, has its own enterprise-level support - FartStrategy.

Yes, when even the "meme" can replicate a certain well-known company's model of "buying coins, then buying coins, using holdings to support market value," this absurd drama has truly completed the final piece of the puzzle.

A columnist from a well-known financial media outlet did not miss this spectacle. In his 2025 column "Crypto Perpetual Motion Machines," he dedicated a section to analyzing FartStrategy and referred to it as "the pinnacle artwork of financial nihilism." The article begins with: "If you can package and sell air, then why can't it be Fartcoin?"

The operational logic of FartStrategy is very simple, even to the point of being blatant: it is a DAO created specifically for purchasing Fartcoin, and its mission statement is, "Hot air rises, and we will ride this wave to create value for Fartcoin and $FSTR (the token of FartStrategy) holders."

It has no profit model, no practical application, and no stable mechanism. It is just a transparent joke, dressed in the guise of smart contracts, packaging "we plan to continue buying Fartcoin" as a form of "financial strategy" under the name of community voting. Even the official copy bluntly states: "FartStrategy is a comically absurd example, and holding it should not be expected to yield any economic returns."

The columnist likened it to a mirrored derivative of a well-known company—the latter continuously raises funds to buy Bitcoin, inflating the company's valuation; while the former relies on the interplay of memes and DAOs to self-pressurize the hot air, forming a "Fartcoin Flywheel", a financial perpetual motion machine sustained by emotions. He described it as "a leverage container with hot air as an asset"; when its market value exceeds the total value of the Fartcoin it actually holds, it sells $FSTR to buy more Fartcoin, completing the meme pixel-level closed loop.

Fartcoin comes from absurdity and stands firm in chaos.

According to the data from the on-chain data analysis platform, from January 3, 2025, to May 9, the chip structure of Fartcoin is gradually shifting from early large holders to retail investors. In particular, from January to May of this year, the growth rate of addresses holding less than 1000 dollars has started to rise. Meanwhile, Fartcoin has also become one of the most actively traded coins in terms of trading volume and liquidity on a certain exchange platform.

From the initial institutional manipulation to the current scattered chips. All seemingly rational financial narratives ultimately reveal their true nature in the toilet humor of Fartcoin.

Fartcoin almost fits all our stereotypes of a meme coin: a funny name, no practical value, popularity driven entirely by linguistic effects and social media, even making traditional Wall Street investors uncomfortable.

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