Interest in artificial intelligence (AI) has increased significantly in recent years. AI is a disruptive technology with the potential to fundamentally change countless industries, including cryptocurrency. Many see it as a key component of the new financial and social ecosystem, including decentralized finance (DeFi) projects. It is therefore no surprise that many new cryptocurrency projects are closely incorporated with aspects of AI. Through this, we will dig deeper into AI tokens and see a few popular AI token examples.

What is AI Token?

Simply put, an AI token is a cryptocurrency that uses AI to improve security, user experience, scalability, or many other factors. In theory, AI can be trained to further automate and build trust or efficiency in many cryptocurrency systems. AI tokens can also be digital currencies designed for AI-based applications or projects, including decentralized markets or exchanges, image or text generation services, investment protocols on AI…

The birth of ChatGPT

The crypto space and the world have been buzzing about ChatGPT since the service was released in mid-2020, and especially starting in late 2022 when it became widely available. ChatGPT is a chatbot developed by OpenAI, designed to create human-like text and perform many linguistic tasks such as processing information, answering questions...

The potential for ChatGPT to continue to disrupt the crypto space is huge. As Justin Sun, creator of the blockchain and tron ​​token, outlined a viable decentralized payments framework and powered AI-based chatbots.

Perhaps more importantly, ChatGPT's sudden popularity has sparked renewed interest among both crypto and outside investors in the possibilities of AI technology. Microsoft recently announced a $10 billion investment in ChatGPT developer OpenAI, further fueling interest. Several crypto tokens have seen gains of 75% or more by the end of 2022, amid growth in ChatGPT, and these gains have continued to accumulate for select AI tokens. As of early February 2023, the total market value of all AI tokens is approximately $1.6 billion. This number is small compared to the overall cryptocurrency space, but AI is growing rapidly, especially as institutional investor money continues to flow into AI.

Challenges and benefits of AI tokens

Token AI is gaining momentum but still faces challenges. These are the uncertain future of cryptocurrency regulation, competition from both AI projects and digital token projects, lack of public understanding of AI-based projects.

On the other hand, the benefits of AI tokens include decentralization, built-in security, and limitless possibilities for new applications and use cases.

Some hot AI tokens

AGIX

AGIX is one of the most popular AI tokens today. It is a token native to the decentralized platform SingularityNET. SingularityNET provides an open-source, decentralized blockchain marketplace for users to buy and sell a variety of AI-related products and services. One of the key features of the platform is allowing trading of models, data, and other tools used to improve AI through training. In this sense, SingularityNET is a platform powered and designed to benefit AI.

DONE

FET is the medium of exchange for the Fetch.ai system. Fetch is a decentralized platform used to build intelligent, autonomous tools and software. It can launch bots that analyze data, make decisions, and predict.

NMR

NMR is a token linked to Numerai's AI-based decentralized venture fund. Numerai is a model that uses artificial intelligence to inform investment decisions. It uses a set of crowdsourced predictions from data scientists around the world when considering possible investments. Contributors to those predictions are rewarded with NMR tokens for accurate predictions.

OR

ALI, short for Artificial Liquid Intelligence, is the token used by the Alethea image generator. Alethea uses AI to create images based on input from users. It is known for CharacterGPT, an AI protocol that uses text descriptions to create interactive AI-based characters. ALI tokens are used to create character NFTs as well as for upgrades, incentives, and transactions.

Hera

Hera is a token associated with the pathfinding algorithm of the same name. Hera helps DeFi ecosystem participants target the most efficient, profitable trading routes on decentralized exchanges. It uses machine learning algorithms to analyze prices, liquidity, trading volume, and other data. The Hera token allows users to participate in project governance and share protocol revenues.