- The success of ChatGPT is responsible for the hype surrounding AI tokens.
- Some AI Tokens that previously sold at a few pennies at the beginning of the year now rank among the top 100 cryptocurrencies in the world
- The AI token market is in the nascent stage; hence it is vulnerable to some challenges. However, it also has endless opportunities.
The extraordinary success of ChatGPT (An AI-powered Chatbot developed by OpenAI. This tool generates human-like texts and performs tasks like information processing and answering questions) mainly contributes to the hype around AI tokens. In fact, in recent times, anything related to Artificial Intelligence and ChatGPT has experienced mass adoption by the public.
AI tokens leverage AI to improve blockchain security, user experience, scalability, and interoperability. They are still in their early days and they face some challenges such as lack of awareness, regulations, and uncertainty of the future. Hence, it’s important to exercise caution when investing in AI tokens as they are new and uncertain. Some popular AI tokens are AGIX, Fetch, NumerAI, Alethea AI, and Graph GRT.
According to CoinMarketCap, as of February 2023, the market cap value of AI tokens is around $5 Billion, and some of these tokens that were trading for a few pennies at the beginning of the year now rank among the top 100 cryptocurrencies in the world. Considering these pieces of information, one might imagine what AI tokens are and if they are worth investing in.
In the rest of this article, we will discuss AI tokens, examine if they are suitable investments, outline some challenges and benefits, and discuss some of the top AI tokens in the crypto market.
What are Crypto AI Tokens?
The concept of artificial intelligence is familiar, as it has been around for a long time. In recent times AI has been predicted to change the narratives across countless industries ( the crypto industry inclusive). Hence, it is not a surprise to see many new crypto-currency projects leverage the foundation and hype of AI.
AI tokens are digital tokens that leverage AI to improve the blockchain’s security, user experience, scalability, and interoperability. They are the backbone behind AI-based applications, decentralized marketplaces and other artificial intelligence-based platforms. These tokens are also native currencies on blockchain platforms used to pay for AI products and services ( on the blockchain)
Challenges and benefits of AI tokens
AI tokens are receptive to several challenges that are likely to hinder growth and adoption rate, and this is mostly attributed to the fact that these tokens are still in their early stage. This calls for the need for awareness and exposure of the crypto community to the technical know-how and modus operandi of AI tokens. Furthermore, the absence of clear and consistent regulations surrounding the cryptocurrency market makes it difficult to predict how regulatory updates in the future will affect the value and utility of AI tokens.
On the other hand, there are also positives associated with the AI token market; some of these are : Improvement of blockchain security, user experience, scalability, and interoperability of the blockchain ecosystem.
Singularity NET ( a leading decentralized AI marketplace, that is powered on the blockchain) recently endorsed AI as a tool that can make the world better.
At #SingularityNET, we believe that AI has the power to transform our world for the better. Our mission is to harness this potential for good and ensure that the benefits of AI are shared by all.#AI #AGI #DecentralizedAI #BuildingonSNET pic.twitter.com/10wv4Igppi— SingularityNET (@SingularityNET) March 14, 2023
Top AI Token You Should Look Out For
AGIX is one of the most popular AI tokens. It’s the native token to the singularityNET centralized platform. AGIX is a marketplace on the blockchain where people create and monetize AI services. This platform ensures equality in access to AI and its use cases. At the point of writing, AGIX sells at $0.4605 and has a market cap value of $555 million.
Fetch connects people, devices, and services and enhances the ease of sharing information, data analysis, and decision-making. FET token is the native token of this platform, and it is the primary medium of exchange within the ecosystem. At the point of writing, FET sells at $0.4502 and has a market cap value of $360 million.
NumerAI was launched in 2015, it is an AI-based portfolio management tool built on the Ethereum blockchain, and it leverages artificial intelligence to manage and optimize investment portfolios. This application crowdsources predictions from a community of data scientists and proceeds to use these predictions to drive its trading algorithm. Participants and community members are rewarded with the platform’s native token- Numeraire ( NMR)
4. Alethea AI
This is an AI-powered image generator that generates new images using the inputs from the user. The native token of this platform- Artificial Liquid Intelligence (ALI) is used as incentives for people who use the AI protocol, this token is also used for governance purposes. At the point of writing, ALI sells at $0.05846 and has a market cap value of $209 million.
5. Graph GRT
The GRT is the native token of the graph network. The graph network is a decentralized protocol for indexing and querying data from blockchains, starting with Ethereum. At the point of writing, GRT sells at $0.169 and has a market cap value of $1.4 billion.
Are AI Tokens Good Investments?
There are many uncertainties surrounding AI tokens and their chances of being around for a long-time. However, if the current cryptocurrency market trend is the sole basis for a conclusion; then we might agree that AI tokens are here to stay. On the other hand, one needs to remember that the concept of AI tokens is pretty new, and this calls for extra care before making any investment decision. Hence, don’t just buy any tokens because it has the abbreviation AI in them or because people say it’s the next big thing.
It’s advisable to always do your research (DYOR) before buying crypto and only invest what you can afford to lose. Recommending AI tokens as the best to invest in is a herculean task and this is because of the volatile nature and uncertainties surrounding the crypto market. For a more detailed explanation on the factors that cause volatility in the crypto market, read this article.
Conclusively, we are very optimistic about Artificial Intelligence and AI tokens and their endless potential. We are keeping a close eye on this trend and hope to keep you updated as events unfold in this space.