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Deep Dive In AI Cryptocurrencies: Cutting-Edge Technologies And Profits

Why it matters to you:
Artificial intelligence (AI) is the simulation of human intelligence processed with technologies and the development of this phenomenon boosted in 2022-2023 and gained public attention. The combination of AI and blockchain technologies created new digital products with currencies and these assets began to grow exponentially. Such hype allows early investors to make good returns – that’s why you’d better be aware of this new trend and use this knowledge to earn from it.
AI and cryptocurrenciesTop AI crypto projects

Artificial intelligence in its current understanding is a set of algorithms that allow programs to learn and improve themselves. AI is now used everywhere: from simple chatbots to neural networks with incredible features. The development of AI today is progressing by leaps and bounds. Countries and global corporations such as Google, Tesla, Microsoft, are engaged in AI study and development. The prospects are impressive.

Since the 2000s, artificial intelligence has found its way in smart houses technologies, as well as computer games. The widespread adoption of smartphones is also driving the use of AI in apps. Step by step, AI is being introduced into other industries and services – for example, facial recognition in video surveillance, medical robot assistants and analysts, car autopilot systems, etc. More and more often we encounter AI in our daily lives: in transport, at home, at work, in shops and entertainment centers and so on.

100 M Users in 5 Days

The number of people ChatGPT attracted post-launch

According to various sources, the most famous AI system, ChatGPT, gained phenomenal popularity and reached 100 M users in just five days. By now, ChatGPT currently has around 180.5M users, and according to OpenAI CEO Sam Altman, 100 million people use it every week. The variety of use for ChatGPT creates endless opportunities for people, who are also looking for ways for AI to help in their financial ventures. 

AI and cryptocurrencies

The integration of artificial intelligence and cryptocurrencies is redefining the landscape of digital transactions, which led to the emergence of AI coins or AI crypto tokens. These coins, leveraging the power of AI, facilitate a diverse range of applications within the cryptocurrency ecosystem. While their functionalities vary very much, in financial world they primarily revolve around leveraging AI for more efficient decision-making, risk management, and trading processes.

What is AI cryptocurrencies: exploring diverse models of AI coins

AI-powered cryptocurrencies adopt varied models to address specific challenges, employing AI in different capacities to meet their objectives. 

Examples include the utilization of AI-driven trading bots, the establishment of decentralized marketplaces for AI software, providing cloud-based computing resources for artificial neural networks and many more. The incorporation of AI adds complexity to the viability assessment, necessitating a meticulous examination of the technical whitepapers and the creation of value within the ecosystem.

AI coins often implement unique tokenomics to incentivize participation and ensure the sustainability of their platforms. For instance, a project might distribute its native tokens to contributors providing computational resources for running AI models or offer token holders a share of the fund's revenues in proportion to their token holdings. These strategies showcase the diverse ways AI-driven cryptocurrencies foster engagement and participation within their respective ecosystems.

The bottom line is, that people incorporate AI in their day-to-day routine to benefit from it and thus make more profitable decisions. By now, the world of cryptocurrencies allows it to do without any limitations. 

Top AI crypto projects

AI-based cryptocurrencies are created to utilize the potential of artificial intelligence, including predictive analytics, machine learning, and natural language processing, to offer one-of-a-kind features, services, or applications within the domain of blockchain technology. Several prominent AI-driven cryptocurrencies have surfaced in the crypto market, demonstrating the potential of merging AI with blockchain technology. 

Here is the list of notable AI currencies which have gained good traction. 

The Graph (GRT)

The Graph is a protocol for indexing and querying blockchain data, like Google's indexing and querying of website data. The Graph seeks to alleviate the difficulty of indexing blockchain data by breaking it into manageable "subgraphs." 

Injective (INJ) 

Injective (INJ) is an artificial intelligence (AI) crypto project with a focus on the financial sector to facilitate the development of decentralized financial (DeFi) systems. Injective facilitates cryptocurrency-based margin trading, derivatives trading, and FX futures trading. To authenticate network transactions and vote on the direction of the project's governance, Injective uses its native currency, INJ.

Render (RNDR) 

Render connects artists with crypto miners who are prepared to rent out their graphics processing units (GPUs), giving them access to the computational power they need to generate computer images. Users of the Render project must exchange their RNDR for the GPU hash rate of miners. A consensus method based on "proof of work" runs the system.

Oasis Network (ROSE)

Oasis Network is the 'first privacy-enabled blockchain platform for open finance and a responsible data economy'. Simply put, the project is a proof-of-stake blockchain network meant to facilitate open finance without compromising users' privacy.

Ocean Protocol (Ocean)

Ocean Protocol is a blockchain-based platform built on the Ethereum network that facilitates the trading and monetization of data and data-driven services between corporations and people. One possible approach is to provide academics and entrepreneurs access to data without requiring its owners to disclose it.

Fetch.ai (FET)

Fetch.ai is a decentralized platform for artificial intelligence and machine learning. Fetch.ai is focused on automating commercial activities including data processing and trading. Its cryptocurrency, FET, is used to pay for transactions on the network.

OriginTrail (TRAC)

OriginTrail is a blockchain-based artificial intelligence initiative designed to improve the supply market. Without the paperwork, OriginTrail's blockchain-based product tracking system allows warehouses, distributors, and retailers to monitor the whereabouts of goods in real time. The native currency of the project is TRAC, which users exchange for the project's offerings.

These initiatives showcase the diverse applications of AI in the crypto space, offering investors and stakeholders an opportunity to engage with AI-related businesses without leaving the crypto ecosystem. 

Evaluating the advantages and drawbacks of AI coin investments

The integration of AI and cryptocurrencies presents a transformative opportunity for the financial and technology sectors, paving the way for innovative solutions and streamlined processes. Their benefits and perks include enhanced efficiency, improved risk assessment, data analysis and decision-making. AI inclusion significantly accelerates transaction speed, minimizes the risks associated with emotional trading, ultimately enhancing overall trading outcomes.

So, what’s the market value and potential of AI cryptocurrencies? 

With the recent exponentially growing hype around AI technologies, it is understandable that people will try to find opportunities to make profit from it. All AI-related cryptocurrencies, mentioned above, gain huge attention from investors seeking gems for an early entrance. As they navigate the opportunities of the AI and cryptocurrency convergence, a comprehensive understanding of the market dynamics, technological intricacies, and risk factors is essential for making informed investment decisions. This is quite a risky market – we yet have to find out whether artificial intelligence technologies are reliable – but the market already approves, with constant growth of the number of AI-related projects and their capitalization. There is a lot of room where to grow by now.

The main risk in this market is not to miss a real opportunity: people are watching the projects emerge in numbers, so then the FOMO walks in, investors’ worst friend. Investors have to do a lot of due diligence and paperwork in order to understand whether the project is “gold” or “bust”.

How to leverage AI hype in making balanced investments

It is quite obvious that general public is not familiar with all AI-related intricacies and have to spend dozens of hours in order to understand, whether these projects are worth investing in. That’s when one have to turn to index investing – an option for diversification and risk mitigation. 

One of the reliable solutions is J’JO AI Index – a balanced basket of top-tier artificial intelligence cryptocurrencies. It consists of coins of ten projects which are traded on various exchanges and have already proven their reliability and market demand. We have briefly touched some of them earlier in the article. 

The most remarkable benefit of J’JO AI Index is its balanced distribution of assets within this “basket”. We all presumably know how volatile cryptocurrencies are – and that’s why the “basket” exists: the downfall of one asset price might be saved by the growth of another. Any AI project might be at risk, but when you invest in ten at once – this risk is reduced, while the general trend of AI coin popularity continues for a long distance. 

You can easily check the performance of J’JO AI Index on a dashboard: the recent positive news in both crypto and AI industries push the market upwards for several consequent months. 

Below you can see the performance of J'JO AI Index from September to November 2023. It gained +114,75% in 3 months time.

Learn more about the J'JO service on the official website.

Published: Dec 5, 2023
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