Interest in artificial intelligence (AI) has increased dramatically in recent years. Artificial intelligence is a disruptive technology with enormous potential to transform countless industries, including cryptocurrencies. Enthusiasts see artificial intelligence as a key component of new social and financial ecosystems, including decentralized finance (DeFi) projects. So it’s no surprise that many new crypto projects are tightly integrated with aspects of artificial intelligence. it’s here, Bitcoin Magazine We will delve deeper into AI tokens and take a closer look at a few popular examples.
What are AI Tokens?
Simply put, an AI token is a cryptocurrency that uses AI in some way to improve security, user experience, scalability, or many other factors. In theory, AI could be trained to further automate and build trust or efficiency in many cryptocurrency systems.
AI tokens, which can also be referred to as digital currencies, are designed to power AI-based applications or projects, including decentralized marketplaces or exchanges, image creation services or cultural copies, AI-based investment protocols, and more.
The Birth of ChatGPT
Since the service was released in mid-2020, and especially since it became popular in late 2022, the cryptocurrency market and business, education, etc. have been buzzing about ChatGPT. ChatGPT is a chatbot developed by OpenAI designed to generate human-like text and perform many language tasks such as processing information, answering questions, etc.
The potential of ChatGPT in creating a cryptocurrency market is enormous. For example, blockchain and TRON token creator Justin Sun outlined a possible AI-based decentralized payment framework that relies on and supports chatbots.
Perhaps more importantly, the sudden popularity of ChatGPT has reignited interest among cryptocurrency investors and those outside the community in the possibilities of AI technology. Microsoft’s recent announcement of a $10 billion investment in OpenAI, the developer of ChatGPT, fueled further interest. With the addition of ChatGPT, by the end of 2022, the return of some AI tokens has reached 75% or more, and these returns continue to accumulate in a certain number of tokens. As of early February 2023, the total market capitalization of all AI tokens is approximately $1.6 billion, which is small compared to the broader crypto market. But this is growing rapidly, especially as institutional investor money continues to flow into AI.
Challenges and Benefits of AI Tokens
Token AI is gaining momentum, but significant challenges remain. Among them, challenges include an uncertain future surrounding the regulation of the cryptocurrency market, competition from artificial intelligence projects and digital tokens, and a lack of public understanding of the cryptocurrency market for AI-based projects. All of these challenges can be very complex. As of February 2023, all AI tokens have a market capitalization of $1.6 billion or more.
On the other hand, the benefits of AI tokens include the built-in decentralization and security enabled by blockchain and the endless possibilities of new applications and use cases. Below are some AI tokens that benefit from ChatGPT.
AGIX is one of the most popular artificial intelligence tokens today. This is a token derived from the SingularityNET decentralized platform. SingularityNET provides an open-source, decentralized blockchain marketplace that allows users to buy and sell various AI-related products and services. One of the main features of the platform is to allow trading models, data and other tools for improving AI through training. In this sense, SingularityNET is a platform that is supported and designed to benefit AI.
In the past 30 days, AGIX has brought more than 400% gains to investors who trusted the project. At press time, the token is up more than 2 percent and is trading at $0.41.
AGIX chart. Source: TradingView
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FET is the medium of exchange for the Fetch.ai system. Fetch is a decentralized platform for building intelligent, autonomous tools and software. It can launch data analysis, decision-making and forecasting robots.
At press time, FET was flat and trading at $0.41, but is up 126% over the past month.
FET diagram. Source: TradingView
- nuclear magnetic resonance
NMR is the token pegged to Numerai’s artificial intelligence-based decentralized hedge fund. Numerai is a model of how artificial intelligence can be used to inform investment decisions. When looking for possible investments, it uses a collection of community forecasts from data scientists around the world. Contributors to these predictions will be rewarded in NMR tokens for correct predictions.
NMR shares were down more than 3% at $19.17 at press time. On the monthly time frame, the coin has returned 28%.
NMR. Source: TradingView
ALI stands for Artificial Liquid Intelligence and is the token used by the Alethea image generator. Alethea uses AI to create images based on user input. It is known for CharacterGPT, an AI protocol that uses textual descriptions to create interactive AI-based characters. ALI tokens are used to generate NFT characters as well as upgrades, incentives and transactions.
ALI helped investors achieve a return of 184% in the past 30 days. In the daily frame, the AI token is up more than 3% and is trading at $0.05.
Ali chart. Source: TradingView
Hera is the token associated with the pathfinding algorithm of the same name. Hera assists DeFi ecosystem participants in targeting the most profitable and efficient trade routes on decentralized exchanges. It uses machine learning algorithms to analyze price, liquidity, volume and other data. Hera tokens allow users to participate in project governance and share protocol revenue.
HERA is the most bullish altcoin on the daily time frame, returning over 7%. Over the past month, HERA recorded gains of more than 71%.
Hera chart. Source: TradingView
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