Near-total wipeout of capital

A company that has yet to generate any revenue, positioning itself at the intersection of artificial intelligence and cryptocurrency, went from a solid cash position to almost nothing in the space of six months, according to CryptoSlate. At the end of June 2026, its accounts showed just $577,328 in available capital — a decline representing a 97 percent loss of its original cash reserves.

Two factors proved particularly devastating: aggressive and loss-making crypto trades, and a transfer of as much as $12 million into the electric vehicle sector. The combination of speculative crypto exposure and a large sector bet, with no ongoing revenue to fall back on, proved fatal to the company's liquidity.

$577,328 in cash — that is all that remains after six months of 97 percent losses
AI crypto start-up lost 97% of its cash in six months - Bilde 1

Contingent rescue plans with no guaranteed outcome

The company has two potential paths out of the crisis, but both remain contingent. One is a RoboShare pilot — a service not described in any detail in the available source material — and the other is a discounted equity facility. Neither has been activated or made legally binding as of now, leaving the immediate future highly uncertain.

AI crypto start-up lost 97% of its cash in six months - Bilde 2

A warning signal for the sector

This case illustrates a risk that is well documented in the literature on crypto presales and early-stage crypto companies: the combination of no revenue, high exposure to volatile assets, and undisciplined capital allocation can wipe out a company's cash reserves extremely quickly.

By contrast, other AI crypto companies — such as ceτi AI (CETI), which received a $60 million investment from BCII — have built tokenomics explicitly designed to absorb market volatility and maintain liquid reserves over time. Ocean Protocol, for its part, uses an active DAO governance model in which the community votes on treasury allocations, according to the research material.

$577,328
Remaining cash June 2026
$12M
Channelled into the EV sector

Market context: risk-off and a fear index of 31

This story is unfolding in a market defined by risk aversion. Bitcoin is trading around $65,000, and the crypto fear-and-greed index stands at 31 out of 100 — firmly in "fear" territory. In such a climate, investor tolerance for underperforming pre-revenue companies with poor liquidity management is extremely low.

The research material reviewed by 24markets underscores that sustainable treasury management for AI crypto companies requires diversification, clear investment policies, hedging tools, and ideally AI-driven risk management in real time. It is difficult to see that the company in this case has followed any of these principles.

Critical source assessment

It should be noted that CryptoSlate's original article is very brief and does not name the company. 24markets is therefore unable to independently verify all details. The claims regarding a 97 percent loss and $12 million directed toward the EV sector are presented as facts derived from accounting data, but readers should be aware that the full context is not publicly available at the time of publication.