ARTIFICIAL INTELLIGENCE (AI) means a computer’s ability to perform functions considered intelligent, such as learning, reasoning, and problem-solving. AI cryptos are cryptocurrencies with a use case directly or indirectly related to artificial intelligence. Well-known AI cryptos include SingularityNET (AGIX), Fetch.ai (FET), Ocean Protocol (OCEAN), Artificial Liquid Intelligence (ALI), and Numeraire (NUM).
SingularityNET is a decentralized marketplace for applications utilizing artificial intelligence. Fetch.ai provides the tools and infrastructure for app developers who want to build AI systems. Ocean Protocol is an ecosystem for buying and selling big data. Artificial Liquid Intelligence combines artificial intelligence, NFT technology, and the metaverse. Numerai is an investment fund guided by artificial intelligence.
The AI cryptos (AI coins) sector will increase its market share many times in the coming years.
What is artificial intelligence?
Artificial intelligence (AI) means a computer’s ability to perform functions considered intelligent, such as learning, reasoning, and problem-solving. Artificial intelligence is a computer program that has been taught to act in a certain way with the help of (big) data.
Most AI applications are about machine learning. In machine learning, a computer program is not given instructions for every problem, but the program (algorithm) develops independently and learns to find the right solutions. When the AI is fed new data, it modifies its decision-making accordingly.
Everyday examples of AI:
- Search engines
- E-mail spam filters
- Google Map’s directions
- Typing error detection
- Translation tools
Self-driving cars have received a lot of media coverage in recent years. They are well-known applications of artificial intelligence. A program is taught to recognize driving lanes and traffic signs, after which it learns to operate correctly in traffic and avoid accidents.
Although artificial intelligence has been used for years in various sectors, the topic really rose to the mainstream at the turn of 2022-2023. The reason for this was ChatGPT (Chat Generative Pre-trained Transformer) published by OpenAI company. ChatGPT is a chatbot from which you can ask literally anything about any topic you can imagine.
Instead of answers, the biggest uproar came from ChatGPT’s ability to generate text and program code. ChatGPT can write an article or even a poem with certain specs and also create code in different programming languages. It can tell jokes and come up with a million other answers to any question!
It tells something about the popularity of ChatGPT that it is the fastest-growing application in history. ChatGPT got a million users in just 5 days! For comparison, Instagram gained a million users in 2.5 months, Facebook in 10 months, and Netflix in 3.5 years.
In addition to ordinary people, tech giants have also woken up to the possibilities brought by artificial intelligence. In January 2023, Microsoft announced an investment of no less than 10 billion dollars in the OpenAI company. Google will also launch a competitor to ChatGPT. There is a race to utilize AI.
Artificial intelligence is probably the biggest megatrend of the 2020s. Now it is also coming to the world of cryptocurrencies.
What are AI cryptos Artificial intelligence cryptocurrencies)?
AI cryptos are cryptocurrencies with a use case directly or indirectly related to artificial intelligence. There is no precise definition yet for artificial intelligence cryptos. This is because even the term artificial intelligence cannot be defined precisely.
In the world of cryptocurrencies, the AI category also includes data processing. This is the reason why AI cryptos also include projects that index and process blockchain data. The most famous example of such is The Graph.
AI cryptos are more diverse and confusing as a category than, for example, DeFi cryptocurrencies. DeFi coins are almost always governance tokens of one DeFi app and do not have their own blockchain.
AI cryptos have different use cases. Some are governance tokens, but the majority are utility tokens, i.e. the cryptocurrency is needed for using a certain application. Some of the projects also have their own blockchain, such as Fetch AI.
AI coins are still a rather vague concept. The AI tag is also given to many projects that don’t really belong to the AI cryptos category so that they’d get a share of the AI hype.
Examples of AI coins
Well-known AI cryptos include SingularityNET (AGIX), Fetch.ai (FET), Ocean Protocol (OCEAN), Artificial Liquid Intelligence (ALI), and Numeraire (NUM).
In addition to these, The Graph is considered by many to be an AI crypto. Its market cap is currently the largest in the AI coins category, should you count The Graph in it. For those interested in this project, you can find a more extensive The Graph guide on our website.
Next, let’s go through the best-known artificial intelligence cryptos. These examples give you a good idea of what kind of projects and use cases fall into this category.
SingularityNET is a decentralized marketplace for applications utilizing artificial intelligence. Anyone can create their own AI application and offer it as a service through the marketplace. SingularityNET aims to create a global ecosystem where AI developers can share technology, services, and information with each other.
SingularityNET is one of the largest AI cryptos by market cap. It was founded already in 2017. Behind the project is the Hanson Robotics company, which has also created the humanoid robot Sophia The Robot, which caused a great stir some time ago.
The SingularityNET token has the ticker AGIX. AGIX tokens are used in the SingularityNET marketplace as a means of payment. This makes AGIX a utility token. AGIX earns its value based on the usage of the SingularityNET marketplace. The more users the platform has, the more demand there will be for the AGIX token. The project’s official website is singularitynet.io.
Fetch.ai provides the tools and infrastructure for application developers who want to build AI systems. Fetch.ai is an interchain protocol built with the Cosmos SDK. In addition to the Cosmos ecosystem, Fetch.ai is also linked to the Ethereum blockchain.
Fetch.ai is considered by many to be the best equivalent of the term artificial intelligence cryptocurrency (AI coin). The Fetch.ai project was already established in 2017, but the Fetch.ai platform was officially launched in the summer of 2019. It is also one of the most well-known AI cryptos due to its history.
Fetch.ai’s token has the ticker FET. The FET token is used as a native token of the Fetch.ai ecosystem. It is used to pay the transaction fees of the Fetch.ai blockchain, and FET tokens can also be used to purchase AI tools. You can learn more about the ecosystem at fetch.ai.
Ocean Protocol (OCEAN)
Ocean Protocol is an ecosystem for buying and selling big data. It is not an AI coin in the true sense of the term, but Ocean Protocol is classified as an AI crypto and big data is often associated with artificial intelligence. Big data serves as teaching material for artificial intelligence. The more data, the smarter the AI becomes.
Big data has traditionally been stored in the silos of technology giants (Google, Amazon, Meta). Ocean Protocol aims to create an open ecosystem where anyone can access big data. Data can be purchased using a decentralized marketplace. In addition to this, anyone can offer their own data for sale.
The ticker of the Ocean Protocol token is OCEAN. OCEAN is a utility token that is needed to use the Ocean Protocol’s decentralized marketplace. It can be found at market.oceanprotocol.com.
Artificial Liquid Intelligence (ALI)
Artificial Liquid Intelligence combines artificial intelligence, NFT technology, and the metaverse. It is a project founded in 2021 called Alethea AI. The financiers include some of the best-known crypto VCs, such as Multicoin Capital, Galaxy Interactive, Dapper Labs, and Mark Cuban.
Alethea AI enables the creation of an iNFT, i.e. interactive NFT, for which the term smart avatar is also used. This is possible with the CharacterGPT technology created by Alethea AI. An interactive NFT can have sound, animations, and other features of a generative AI. Each user can customize and train their own iNFT avatars. These iNFTs can be created in Alethea AI’s metaverse, which is called Noah’s Ark.
Alethea AI’s token has the ticker ALI, which stands for Artificial Liquid Intelligence. ALI is a utility token. It is needed to create an iNFT. Each iNFT requires a certain minimum amount of ALI tokens that must be locked. ALI tokens are also used to upgrade iNFT, besides which it is also the management token of the Noah’s Ark metaverse. Learn more at noahsark.ai .
Numerai is an investment fund guided by artificial intelligence. Numerai, therefore, combines two hot trends: trading and artificial intelligence. The goal of the project is to modestly create the world’s largest hedge fund. Numerai is one of the oldest AI crypto projects on the market. It has already been established in 2015.
Numerai is an ecosystem built on the Ethereum platform. Anyone can create their own AI algorithm and upload it to the Numerai tournament for competition. The better the model predicts the development of the stock market, the better reputation it gets. Other users can stake Numeraire tokens on behalf of a specific AI algorithm.
The ticker of the Numeraire token is NMR. The NMR token serves as an incentive for developers of AI algorithms. In addition to this, the NMR token is used to stake on behalf of the AI algorithms. The developer of weak models will lose the staked NMR tokens, which will be burned. The best-performing AI algorithms earn NMR for the stakers. You can find the Numerai contestants at numer.ai/tournament/.
The future of AI cryptos
The AI cryptos (AI coins) sector will increase its market share many times in the coming years. AI coins is a sector that has been covered very little in the news so far, even though many of the largest projects have been on the market for years. The AI crypto category resembles the DeFi sector in late 2019 / early 2020.
The first AI crypto boom has clearly taken place at the turn of 2022-2023. SingularityNET (AGIX) rose over 700% in January 2023, Fetch.ai over 200% and Artificial Liquid Intelligence over 500%. The sector has clearly gained momentum from the rise of AI news in mainstream media – thanks to ChatGPT.
It is likely that the sector will proceed in a boom & bust fashion just like the DeFi and NFT markets (as well as meme coins) have done in recent years. Investors should be very careful with such cryptocurrencies. Most investors jump in at the peak of FOMO when professionals are selling their coins and taking profits.
If you want to invest in the crypto megatrends, you have to do it in quiet times, i.e. in a bear market. Don’t buy into the hype when a coin you like has risen 500 percent in the previous month.
The AI crypto sector is growing and developing all the time, so there are new investment opportunities every week. Artificial intelligence is guaranteed to be a long-lasting trend that will catch on well in the coming years.