AI Tokens: A Real Investment or Another Crypto Scam?
As many are already aware, artificial intelligence (AI) and machine learning (ML) are taking the world by storm with new products and services that are boosting productivity to new levels that have never been observed before. In fact, the rise of AI technology is happening so quickly that many are worried about its impact on jobs with a fear that many will soon be replaced.
However, the web3 industry has taken a different approach to the new technology, lamenting it as the next big thing to invest in while attempting to offer new tokens that can generate their own AI-powered blockchains and learning models; but is it just another hype train being promoted by crypto investors and influencers to spur interest into a new set of glorified shitcoins?
What are AI tokens?
AI tokens are a term used for cryptocurrencies that are specifically designed to help operate AI learning models that are trained on data provided by blockchain networks. Unlike governance tokens which give holders voting powers or network tokens that are primarily used for layer 2 protocols, AI tokens are used to power machine learning systems that rely on information from blockchain networks to facilitate the transfer of data and expand the potential of AI technology as a whole.
The Graph
The Graph ($GRT) is an indexing protocol used to query information from the Ethereum network and IPFS to help power various Dapps and DeFi platforms. The protocol allows anyone to publish APIs, known as subgraphs, that query information with GraphQL and can retrieve data from the Ethereum blockchain.
According to Coinmarketcap, there are over 3,000 subgraphs deployed by development teams, including AAVE and Uniswap, and maintains its position as the #1 AI token with a $1.6 billion market cap.
2. SingularityNET
The SingularityNET token ($AGIX) is a cryptocurrency used to help power and afford AI services provided by SingularityNET. The team has created a marketplace for AI services that users can interact with using the $AGIX token.
SingularityNET has created its own AI bot called Sophia which they are using funds to help improve. They are also developing an AI framework called OpenCOG which they hope will surpass current AI technology and even human intelligence.
While ambitious, the team’s efforts are showing results with the value of their coin rising tremendously since the beginning of 2023 from $0.04 to $0.40 with a market cap of $966 million at the time of this writing.
3.Fetch.AI
Fetch.AI (FET) is a token used to power a machine-learning network connected to the cryptocurrency economy. The team behind the project has developed a permissionless and decentralized learning model that allows anyone to pull information from it to help build their own projects.
While the market cap for Fetch.AI is significantly lower than the other cryptocurrencies mentioned at only $461 million, the price of the token has received equally notable activity since the beginning of 2023 with the price rising from $0.10 to $0.40 per token.
Why AI tokens are on the rise
AI technology has been on a significant rise lately with the immense success of ChatGPT which just received a huge update from GPT4. The chatbot developed by OpenAI represents the latest and most consumer-friendly AI service available with its simple user interface and has received a faster adoption rate than any other tech platform in history.
However, ChatGPT isn’t the only AI service available, just the most well-known. Aside from OpenAI’s other services such as Dall-E and Midjourney, there are a plethora of AI platforms that are all gaining popularity including AIDungeon, Copy.AI, and Jasper.
As it stands, AI is quickly becoming a revolutionary product for consumers and could very well change the face of productivity in the same vein as the industrial and digital ages. So, it comes as no surprise that blockchain advocates are rushing towards AI and ML with web3 innovation in mind, but is it just more hype in a space overflowing with fake products?
Are AI tokens the new memecoins?
The overarching concern about AI in crypto is the rising prevalence of memecoins and shitcoins that can’t be trusted. As we all know, new cryptocurrencies are popping up all the time that try to capitalize on the latest trends without offering any real utility, value, or community.
In this case, AI tokens represent the latest fad for scammers to exploit and many risks are coming out such as GPTcoin and AI trading bots that magically print out massive gains. As always, users must remain vigilant and do their due diligence properly when investing in these new cryptocurrencies to avoid being scammed by honey pot tokens and rug pulls.
