AI tokens have rallied since early January 2023. Tokens with some relation to artificial intelligence have started to attract investors’ interest because of their great potential. With such groundbreaking technology still in its infancy, many want to invest in the future by buying AI tokens.
However, investors may be wondering if these tokens are the next Metaverse hype.
In this blog post, we will explore AI tokens and their many benefits. We will also discuss why experts believe they are the next big thing in the digital currency world.
What are AI tokens?
Artificial Intelligence (AI) tokens are digital tokens on the blockchain offered by Web3 projects that incorporate the use of artificial intelligence in their solutions. These tokens can range from AI-based investment protocols to decentralized exchanges to generative AI systems.
Why have AI tokens caught on?
AI tokens are on the rise due to rising interest in artificial intelligence technologies. This followed the release of ChatGPT and AI-powered chatbots in early 2023. For example, the Fetch token (FET) surged over 95% in 30 days due to this increased interest.
OpenAI’s AI chatbot, ChatGPT, conquered the world with its powerful generative AI capabilities during its release in January 2023, opening up many unique applications. For example, ChatGPT has proven to be great at writing emails, creating blog posts, writing scripts, and even writing programs with code!
This sparked a great deal of interest in artificial intelligence technologies, particularly generative AI. For example, Google plans to release its own version of an AI chatbot, Bard, in response to ChatGPT.
Within the cryptocurrency space, this interest in AI has led to a rally in tokens from projects leveraging the use of AI in their products. From decentralized exchanges to investment protocols, AI tokens have been on the rise ever since.
What are some examples of AI token projects?1. The Graph (GRT)
The graph token (GRT) is gaining popularity among investors due to its use of artificial intelligence technologies. The Graph is an indexing protocol that indexes blockchain data using subgraphs. Indexing uses machine learning algorithms, which are a subset of AI.
2. Artificial Liquid Intelligence (ALI)
Another AI token that caught the interest of the crypto market was the ALI token, which gained popularity in early January 2023 and is offered by the Alethea.AI Artificial Liquid Intelligence project.
Their main product is generative AI, where images can be generated using AI via their CharacterGPT product.
The arrival of such Web3-native AI image generators could hint at a future where successful NFT projects can only be generated using AI technology.
3. Numbers (NMR)
A little later, in early February 2023, the Numerai (NMR) token also began to gain popularity in the crypto market. This project drew public attention for its involvement in using data science to predict events in the stock market.
The Numerai Project is an AI-driven hedge fund that claims to make predictions to help with investment decisions and outperform market-neutral indices. Their models are submitted by data scientists who compete for the best prediction accuracies. Data scientists can use their models to earn if they perform well.
What are the advantages of AI tokens?1. Increased efficiency
AI tokens offer many advantages, but perhaps the most important is the increase in efficiency that AI technology can bring. Through the use of AI, projects can develop more efficient product solutions and improve existing ones. Take The Graph for example.
Graph protocol uses AI to index blockchain data on Ethereum and Avalanche blockchain. This helps users who want to query data from these blockchains to access and extract them more efficiently.
2. Increased security
AI tokens are also beneficial for security reasons. AI can be used to detect malicious activity on blockchain networks, and projects utilizing this technology can provide enhanced security features and better protection against attacks.
An example of increased security through the use of AI in Web3 is intelligent contract optimization. By analyzing data at scale, AI can help identify vulnerabilities and anomalies that help flag fraudulent activity.
3. Improved investment returns
Finally, AI tokens can potentially lead to an improved return on investment.
As the Numerai project has shown, investment decisions can be made more intelligently through the use of AI technology.
Based on their products, investors can:
Have a highly diversified portfolio that is market, country, sector and factor neutral
Beyond the crypto space, AI trading software has also gained prominence in recent years. This could be the starting point for more innovative financial technology through the use of AI.
All in all, AI tokens have been gaining a lot of attention since January 2023 – a result of increased trust in AI technology and its use. Given the potential benefits they offer, it’s no surprise that more and more people are becoming interested in these tokens.
As technology evolves, we can expect more projects and tokens to use AI in their products.
Will AI tokens be the next Metaverse hype?
But will AI tokens be the next Metaverse hype? It’s hard to say at this point, but the potential is definitely there.
AI tokens can offer many benefits that could make them attractive investments. As more and more projects are launched and take advantage of AI technology, we might see an increase in interest in this type of token.
Some of them may even have AI applications in the Metaverse. For example, AI image generator projects can be used to generate NFTs as playable characters in a Metaverse game.
However, it remains to be seen whether the market will truly embrace AI tokens and make them the next big thing in cryptocurrency investing.
Until then, investors should do their own research, keep up to date with cryptocurrency news and do their due diligence before investing in any token. Only time will tell if these tokens become the new Metaverse hype.
Will AI tokens be the next crypto trend?
It’s hard to predict if AI tokens will become the next big crypto trend, but they certainly have potential.
As more projects develop and leverage AI technology, we may see an increase in investor interest due to its increased efficiency, safety features, and potentially improved investment returns.
How will artificial intelligence affect cryptocurrencies?
Artificial intelligence has the potential to significantly impact cryptocurrencies. It can be used to improve current cryptocurrency issues – security and scalability.
AI can also help with the scalability of cryptocurrency networks by enabling faster transaction speeds, improved analysis accuracy, and better detection of malicious activity. Additionally, AI-powered platforms like Fetch.AI could potentially revolutionize the way we interact with the blockchain.
Overall, the integration of AI technology into cryptocurrency networks has the potential to positively impact the industry in a number of ways – in terms of efficiency, security and potential investment returns.
As more Web3 projects use AI in unique ways, we may see an increase in interest from investors looking to capitalize on the potential of these technologies.
Austin Chia is the founder of AnyInstructor.com where he writes about Web3, data and all things technical. He believes in the potential of blockchain and the future of cryptocurrencies and hopes to help others learn more about the potential of emerging technologies through content.