The combination of artificial intelligence and cryptocurrencies is becoming more and more common. The boom in AI Tokens has created a multitude of coins on the market that tempt with the sweet promise of instant profit. However, not everything that has AI in its name is gold, because such assets are very often memecoins aimed at catching minnow investors. How to distinguish valuable AI tokens from those that are only promoted as a revolution in the world of cryptocurrencies and AI?
The combination of AI and cryptocurrencies – technological Oreo that fits together perfectly
AI technology is not only the ability to generate a cute kitten or create an audio recording with the voice of a nature film narrator. Artificial intelligence (and all its branches, such as machine learning) also means the ability to analyze huge data sets, forecast trends and automate processes. In turn, blockchain provides a decentralized and secure way of storing and transmitting information. The combination of these technologies enables the creation of advanced applications such as decentralized AI markets, data analysis platforms and predictive systems for financial markets.
Okay, but where did it all start?
Theoretically, the AI boom has actually been going on since 2022, or more specifically (writing) – since November 30. It was on this day that OpenAI revealed ChatGPT 3.5 to the world, which it revolutionized and democratized with the technology of generative artificial intelligence. The next two years will see an abundance of genAI tools and the use of algorithms in many different ways, also in the cryptocurrency and blockchain industries.
AI tokens began to ride the wave of growing interest in artificial intelligence technology and the constantly growing cryptocurrency market. This is how the AI token boom began. It is worth noting, of course, that many of such tokens turned out to be a clever way to take advantage of the popularity of the topic of artificial intelligence and never had anything to do with AI – they were often memecoins that only had AI in their name and had no practical application.
Which AI tokens turned out to be practical and promising assets?
Among the crypto-AI chaff, there are several tokens that have practical applications. Here are some leading projects combining AI with blockchain technology:
SingularityNET (AGIX)
An open platform that allows developers and users to access advanced AI models. Using blockchain technology, SingularityNET decentralizes access to AI services, enabling the creation and sale of AI-based applications.
Fetch.ai (FET)
A platform that combines AI with the Internet of Things (IoT), creating autonomous “agents” capable of performing tasks on behalf of users, such as negotiations and data analysis.
The Graph (GRT)
A protocol that indexes data from blockchains, enabling quick and efficient access to information for decentralized applications (dApps). It uses AI elements to optimize data retrieval.
Ocean Protocol (OCEAN)
A decentralized platform enabling the secure exchange and monetization of data, with an emphasis on integration with AI tools to analyze and process shared information
Numeraire (NMR)
A project that combines AI with financial markets, enabling analysts and scientists to create predictive models that are then used to manage a hedge fund.
AI tokens, i.e. growth potential and at the same time high investment risk
Tokens related to AI projects are attracting the attention of investors due to their innovation and potential applications. However, their value is often susceptible to high market volatility. Some tokens, such as AGIX and FET, have experienced significant increases during certain periods, but have also experienced declines just as often. Many AI tokens and related projects are at an early stage of development, which increases investment risk. Therefore, investing in these tokens requires careful analysis and caution. Of course, it’s DYOR and it’s not about the French fashion house, but about Do Your Own Research 😉
The most promising AI projects in the cryptocurrency world are characterized by:
- real product – they have working platforms or applications with practical applications.
- a strong team – they consist of experienced specialists in the field of AI and blockchain technology.
- transparency – they offer clear information about their development, plans and technologies.
- active community – they have an engaged base of users and investors supporting the development of the project.
AI tokens are an investment primarily in functionality
Investing in AI tokens in cryptocurrencies may offer an attractive profit, but it is also associated with significant risk – these are slightly safer memecoins, because they are based on specific utilities. The key is to thoroughly understand the technology behind the project, evaluate the team and analyze potential applications. Portfolio diversification and caution are essential in making investment decisions when it comes to AI tokens.
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