There is a new trend in the cryptocurrency market: AI tokens. In recent years, interest in artificial intelligence (AI) has expanded tremendously. AI is a revolutionary technology with the potential to alter several sectors, including cryptocurrency, profoundly. It is well-known that narratives fuel crypto markets and artificial intelligence (AI) is the most recent trend.
What are AI Tokens?
AI tokens are cryptocurrencies that employ AI to enhance security, user experience, scalability, or a range of other features. Theoretically, AI can be trained to further automate and improve several cryptosystems’ security or efficiency.
AI tokens could also be digital currency designed to fuel AI-based applications or initiatives, such as decentralized marketplaces or exchanges, picture or text production services, and AI-based investing protocols.
The crypto realm, as well as the business, education, and other sectors, have been abuzz about ChatGPT since its debut in mid-2020, especially since the end of 2022, when it achieved broad appeal. ChatGPT is a chatbot designed by OpenAI to generate human-like prose and perform a variety of linguistic tasks, including information processing, question answering, and more.
ChatGPT has enormous potential to disrupt the crypto sector further. For example, Justin Sun, the developer of the Tron blockchain and token, has proposed an AI-based decentralized payment structure built on and supporting the chatbot.
Perhaps most significantly, the rapid prevalence of ChatGPT has spurred a renewed interest in AI technology among both crypto investors and people outside the ecosystem. For example, Microsoft recently made a $10 billion investment in ChatGPT’s developer, OpenAI, increasing interest.
Some crypto tokens experienced gains of at least 75% in late 2022 due to the emergence of ChatGPT, and these gains have continued to accrue for a small number of AI tokens. Early in February 2023, the entire market value of all AI tokens was approximately $1.6 billion, a rather modest amount compared to the broader crypto market. However, this is expanding rapidly, especially as institutional investors continue to funnel capital into AI.
Pros and cons of AI tokens
AI tokens are gaining traction, but they still face obstacles. These include the uncertain future of cryptocurrency market regulation, rivalry from both AI initiatives and digital tokens, and a lack of public comprehension of the intricate aspects of many AI-based projects.
On the other side, the advantages of AI tokens include the inherent decentralization and security of blockchain networks, as well as the endless potential for new applications and use cases. These are some of the AI tokens that have also profited from ChatGPT.
AGIX
AGIX is a top AI token – the SingularityNET decentralized platform’s native token. Users can buy and sell AI-related goods and services on SingularityNET’s open-source, decentralized blockchain market. Trades of models, data, and other AI training tools are one of this platform’s main features. SingularityNET is powered by and developed for AI.
FET
FET is the currency used on the Fetch.ai platform. Fetch is a decentralized platform for developing autonomous, intelligent software and applications. It enables the development of bots for data analysis, decision-making, and prediction.
NMR
NMR is the token for the decentralized hedge fund powered by artificial intelligence developed by Numerai. Numerai is an example of how artificial intelligence may be utilized to guide investing decisions. It uses a set of crowdsourced forecasts from data scientists around the world to evaluate potential investments. Accurate predictions earn contributors NMR tokens.
ALI
Artificial Liquid Intelligence (ALI) is a token employed by the Alethea image generator. Alethea utilizes AI to generate graphics based on human input. CharacterGPT is a protocol for artificial intelligence that leverages text descriptions to build interactive AI-based characters. ALI tokens are employed for the creation of character NFTs, as well as for upgrades, incentives, and transactions.
Hera
Hera is a token associated with the same-named pathfinder algorithm. Hera assists participants in the DeFi ecosystem in identifying the most profitable and efficient trading channels on decentralized exchanges. It analyzes prices, liquidity, trade volumes, and other data using machine learning algorithms. In addition, Hera tokens enable users to participate in the project’s governance and to split protocol earnings.
AI tokens vastly outperform bitcoin
Prominent Crypto Traders Twitter touts AI-based tokens as the industry that could lead the next bull market. They may be correct thus far: The price of such coins has increased by an average of 80 percent in the past week, according to data from CryptoSlate.
Tokens such as Artificial Liquid Intelligence (ALI), Fetch AI (FET), and Singularity Net (AGIX) have gained as much as 220% and are among the top performers.
Over the past two weeks, the tokens of AI-based startups such as Image Generation AI (IMGNAI) have more than tripled. The technique enables users to make artwork through text interruptions on social sites like Discord.
Formerly prominent tokens from 2018 and 2021, such as Big Data Protocol (BDP) and Measurable Data (MDT), appear to have jumped on the excitement with tweets that appear to remind investors of their use of AI technology within blockchain applications.
BDP has increased by 2,100% in the past week, according to statistics from CoinGecko, while MDT has increased by 150%. Both protocols employ tokens to commoditize data, allowing suppliers and purchasers to trade data in an anonymous and safe manner.
Despite fundamental triggers, big cryptocurrencies such as bitcoin and ether have lagged behind, gaining only 30% in the last month. Nevertheless, the market value of large tokens exceeds $300 billion, requiring substantial investment and public interest for prices to multiply within a few weeks.
