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AI Tokens Recoup After Recent Market Chaos

AI Tokens Recoup After Recent Market Chaos

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TL;DR

  • The price of AI tokens was recently impacted by an incident involving OpenAI and Binance.
  • As the situation has improved, most tokens are beginning to recoup losses.
  • AI tokens are considered one of the biggest narratives for the next crypto bull market.

Over the past few days, AI tokens shaded a lot of market capitalisation following the recent industry incident involving OpenAI and Binance, which caused a significant downturn in the sentiment around the tokens. 

AI Tokens Rocked by Industry Events

On Friday, OpenAI’s CEO was unexpectedly removed by the company’s board, citing a lack of candour in his communications as the reason. Altman’s termination rocked the global AI community, considering he has been the face and pioneering leader behind generative AI. 

The situation also led to chaos at OpenAI’s management; some of the employees, including the co-founder Greg Brockman, resigned in protest of Altman’s dismissal from the company’s leadership. 

After so much back and forth, Altman was later reinstated as CEO of OpenAI on Tuesday after a majority of OpenAI employees threatened to quit. The reinstatement was also supported by Microsoft, which had hired Altman and OpenAI president Greg Brockman to lead a new AI research team.

Behind the OpenAI incident came Binance and the CEO Changpeng Zhao’s guilty plea to facilitate money laundering, among other complaints by the Department of Justice. The largest crypto exchange agreed to pay over $4 billion in settlement to resolve the violations. 

The CEO also agreed to step down as CEO of the company as part of the settlement agreement. The event stirred a lot of reaction in the crypto market, affecting the prices of major tokens, including AI tokens. 

AI Tokens On The Rise

At the time of writing, however, the AI tokens are beginning to recoup the losses incurred during these periods of shake-ups. Data from Coinmarketcap shows AI and Big Data sector has gained over 3.2% over the last 24 hours, nearly 12% in the past 24 hours. 

Some of the biggest gainers include AIOZ Network (186%), ChainGPT (121%), Cortex (54.8%), Akash Network (52.4%), and so on. Following the rise of generative AI, the sector is seen as one of the biggest narratives to play out during the next crypto bull market. 

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

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Ibiam Wayas

Ibiam is an optimistic crypto journalist. Five years from now, he sees himself establishing a unique crypto media outlet that will breach the gap between the crypto world and the general public. He loves to associate with like-minded individuals and collaborate with them on similar projects. He spends much of his time honing his writing and critical thinking skills.

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