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AI Tokens Beyond The Hype: Everything You Need To Know

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What are AI crypto tokens, why are they popular, and will they be a sustainable investment after the ChatGPT hype?

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Research
Danail Velchovski
February 18, 2023
Feb 18

There are two era-defining technologies of the 2020s — blockchain and AI.

While both have their roots in the 20th century, their exponential growth has just begun recently, with the boom of crypto and AI-powered  tools.

Naturally, great minds have thought of ways to complement one another — leveraging the strengths of both techs. But have they succeeded?

Let’s find out in this article and look beyond the hype of AI crypto tokens.

Click here to jump down to our list of the top 3 crypto AI tokens.

What are AI tokens?

The broad definition for AI tokens is “cryptocurrencies that utilize AI in some way to improve security, user experience, scalability.“ — YF

But that isn’t quite the case if we look at any list of the top 100 AI tokens.

AI Crypto Big Data Tokens Coinmarketcap
Even CoinMarketCap is currently listing AI and Big Data tokens under the same category.

Therefore, here is a better definition of AI tokens with some general stats:

  • AI tokens are cryptocurrencies, either powered by AI or providing utility to products and services related to AI companies.
  • They are not new, with some AI tokens like $AGIX and $OBT surfacing in Web3 for several years already.
  • AI tokens grew in popularity with the launch of ChatGPT in late 2022, with some coins doubling in just a few weeks.
  • There are many pseudo-AI coins that have a small amount of automation or AI capability. In most cases — big data projects.
  • As of Feb 17, 2023, the market value of all AI-labeled tokens is $5.38Bn.

Why have they become a crypto narrative?

AI tokens are one of the hottest topics of 2023.

People are still actively discussing and searching for the next big AI project. And there is a good reason for that. While most crypto narratives come and leave after a few months, AI is here to stay for generations, making a good case that the trend will only increase over time.

Crypto vs Internet Addoption and AI Market Size
The left picture illustrates the growth of Blockchain compared to the internet, while the right one forecasts the growth of the AI market. Both show a sign of a rapid increase in the upcoming years.

But how exactly did AI tokens become a crypto narrative?

  1. The concept of combining AI and crypto isn’t new, but it didn’t take off before the release of OpenAI’s ChatGPT in November 2022.
  2. After the release of the chatbot, the world went crazy about how advanced AI has become and began searching for innovative use cases.
  3. Meanwhile, existing AI crypto projects with native tokens hopped on the trend while other brands began working on their own AI tokens.
  4. Top crypto analyst on Twitter shared their research on the topic, further increasing the curiosity of DeFi investors.
An illustration by CoinGecko showing the crypto market’s reaction in the first seven days of ChatGPT.

Is it only hype? Will AI crypto tokens die?

Before answering this question, here is a little story.

In 2022, among the many informational pieces I released, there was one particular publication on the “7 Ways To Invest In Artificial Intelligence”.

While the article didn’t trend like other Medium posts, it contained some entirely accurate analysis points. And by the way, the article was published just 13 days before the announcement of ChatGPT.

Predicted the AI boom:

Below are some chart comparisons from the article.

AI ETFs are up

Exactly 3 months after the publication of the article, AI ETFs are up, with some of them, like ARK, up by +10.30% in the last month.

Returns of the three AI ETFs in the last five years. Source: Google Finance.

AI chips & hardware companies are up

The top two AI chips and hardware providers, NVIDIA and AMD, skyrocketed by over 100% on their 5-year performance.

Returns of the top four AI chips and hardware companies. Source: Google Finance.

Microsoft buys shares in OpenAI

While the article's fourth method (left picture) was unavailable to the public, Microsoft indeed took advantage of the opportunity (right picture).

Source: “7 Ways To Invest In AI” article (left), Google search (right).
Before moving forward, here is an important disclaimer — the above piece was entirely informational, and while the list thrived in the last 3 months, it is not a guaranteed for the future. Predicting the AI boom, in a sense came to two things — the growing capabilities of the tech and the undervaluation of the AI-related investments.

The AI Token prediction

Here is the cherry on top.

The sixth analyzed investment at the time was “tokens in AI blockchain companies.” Since then, the boom of these projects is evident and is probably the reason why you opened this article.

Source: “7 Ways To Invest In AI” by Max Yampolsky.

A Review Of 3 AI Tokens

Here are some fundamentals and tech analyses on three crypto tokens.

$AGIX by SingularityNET

SingularityNET is a blockchain-powered platform that, through its globally accessible AI marketplace, enables anyone to easily “create, share, and monetize” AI services. Users can browse, test, and purchase a wide range of AI services via the SingularityNET marketplace using the platform’s native utility token, $AGIX.

SingularityNET homepage.

Technical analysis of the $AGIX AI token

SingularityNET’s $AGIX token is one of the strongest performers since the beginning of the recent AI hype, with an increase of +935.43% since Nov 30, 2022 (ChatGPT’s release). The token also trades at $0.4325 —three times more than its peak during the last year.

$AGIX price performance Feb 17, 2022 — Feb 17, 2023. Source: CMC.

$OBT by One Click Crypto

One Click Crypto is a Web3 software development company specializing in DeFi products. By using AI/ML models, the team has already produced 8+ crypto trading bots that use the $OBT token as part of their utility.

For the upcoming release of the DeFi Robo-advisor app, the company is also preparing the migration of $OBT into $1CC — a brand new AI token that will power the One Click Crypto ecosystem.

One Click Crypto AI Home Page
One Click Crypto home page.

Technical analysis of the $OBT token

One Click Crypto’s $OBT token is up by +48.95% since the release of ChatGPT and is currently trading at $0.0277 — still below 50% of its ATH from one year ago at $0.60, showing room for growth.

$OBT price performance Feb 17, 2022 — Feb 17, 2023. Source: CMC.

$NMR by Numerai

Numerai is an Ethereum-based platform that allows developers and data scientists to experiment and build more reliable machine-learning models.

The platform’s primary goal is to decentralize the data science field and enable developers to compete in creating effective ML prediction models. The $NMR token is used in a novel auction mechanism to make overfitting economically irrational in the Numerai ecosystem.

Numerai home page.

Technical analysis of the $NMR AI token

Numerai’s $NMR token is up by +82.66% since ChatGPT’s release and is currently trading at $20.55 — about 33% below its 12-month peak from April last year at $33.4.

$NMR price performance Feb 17, 2022 — Feb 17, 2023. Source: CMC.

Takeaway

The short analysis of these 3 AI crypto projects shows that some native tokens have jumped by nearly +1000% since the beginning of the ChatGPT hype and are well beyond their previous highs, while other AI tokens are still on their hike to fill their previous maximums.

Additionally, the macro state of the AI market shows general undervaluation, as seen from the charts in the previous section. The AI sector remains a lucrative investment opportunity even as of February 2023, but profits can never be guaranteed.

Now, the question is…

Is it too late to invest in AI crypto tokens?

Re: Never too early to research.

Everything is still undervalued, but that doesn’t necessarily mean that FOMO-ing will guarantee returns.

The underlying principle is that AI will likely be part of our lives in upcoming decades → therefore, AI investments would thrive and still hold ground, but there are always unpredictable events.

For that reason, always do your own research and consult a financial expert before making any decision.

ChatGPT knows.

Conclusion

AI and crypto are here to stay.

Those words aren’t coming from another DeFi degen, but the president of the World Economic Forum — Klaus Schwab, during a speech on Feb 15 at the World Economic Summit (link to the official video).

Conspiracy theories aside, the WEF leader indeed got one thing right: “Who masters those (new) technologies — in some way — will be the master of the world.” Creepy, indeed.

With all the world leaders and billionaires like Elon Musk, Bill Gates, and Jeff Bezos rushing to shape how humans and AI will live together, it’s vital for the everyday person to stay ahead of the curve with all available resources.

9 More Research Articles On AI By One Click Crypto

  1. AI In Cryptocurrency Trading: The Big Picture
  2. Philosophy And Reasoning Behind AI-Driven Investments
  3. AI Portfolio Management Technology
  4. How AI Became a Better Wealth Manager Than Humans
  5. AI Crypto Trading Bot With 100% Accuracy
  6. How Did AI Respond To The Terra (LUNA) Meltdown?
  7. Can AI Trading Bot Beat ETH By +0.23% Daily?
  8. Can AI Outperform The Bear Market?
  9. I’m officially giving in… to the AI.

Disclaimer: This is not financial advice. This report is strictly educational and does not provide investment advice, solicit the purchase or sale of any assets, or encourage readers to make financial decisions. Please use caution and conduct independent research.

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Danail Velchovski

Danail masterfully combines his deep knowledge of blockchain technology and his strong writing skills to deliver crisp, comprehensive content. With his early immersion in the web3 domain, he navigates the complexities of this revolutionary technology with ease, turning intricate concepts into engaging, digestible pieces. His research acumen and keen insight into the rapidly evolving world of decentralized networks make him an invaluable asset in educating audiences about web3's potential and its ever-evolving landscape.

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