AI-Based Tokens in Crypto
AI-based tokens, which rely on artificial intelligence for their utility, are a hot subsector of the crypto market. These tokens are gaining traction and being hyped up from platforms like Injective and AnimeAIToken. They have seen substantial price pumps, such as Injective experiencing a 300% increase since June. This demonstrates the increasing popularity of these AI-based tokens.
Leading figures in the crypto space, including the Bankless bros, are spreading a narrative that crypto can become the currency of AI agents. As AI becomes more integral to our daily lives, there is a belief that AI agents will require currency to fulfill their objectives and will prefer decentralized digital currencies that exist online. This belief is supported by AI language models like ChatGPT describing cryptocurrency as having properties that AI agents would seek in a currency.
Who’s Building AI Crypto?
Fetch.ai is one of the earliest players in the AI/crypto field. Originally focusing on drone technology, the company pivoted to AI in 2018, aiming to create “autonomous economic agents.” Their FET token began to gain momentum earlier this year as the OpenAI trend gained traction.
Another player, Render (RNDR), offers a distributed GPU rendering network that also aligns with the AI narrative. However, it remains unclear whether these projects are AI products themselves or simply products that incorporate AI.
But is it AI?
As the market continues to hype up tokens associated with AI, questions arise about whether they genuinely contain artificial intelligence. In the case of these projects, it’s uncertain whether they have any substantial AI integration beyond chat interfaces or use of hardware.
While AI-related tokens may not yet live up to the narrative of being the preferred currency of AI agents, their increased market cap demonstrates the enduring faith investors have in this narrative. As the market matures, it will be interesting to see how AI and crypto continue to intersect.
Hot Take: The Future of AI-Driven Crypto
As the crypto space continues to evolve, the narrative of crypto becoming the currency of AI agents is gaining momentum. Despite the skepticism around the actual AI integration in these tokens, their increasing market cap suggests that this narrative is here to stay. The true potential of AI and crypto’s intersection may still be ahead of us, opening up further possibilities for growth and innovation.
Disclaimer
The views and opinions expressed by the author are for informational purposes only and do not constitute financial, investment, or other advice.
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