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Bitcoin price today hit its new peak and BTC rose to $67,500. What about artificial intelligence altcoins? They also took their fair share from the BTC price increase, witnessing double-digit surges. The rally of artificial intelligence tokens had already started with the launch of ChatGPT in November 2022, and the overall market sentiment recovery took it to a whole new level. But are these altcoins really a good option in the long run?
Hype and Making Money in Crypto
In the second part, I will focus more on artificial intelligence, but we must understand the “hype-price relationship” well. DOGE, SHIB, PEPE, and even altcoins that claim to produce technology but are actually useless (and most investors are aware of this) have seen significant price increases. We even saw some increase by more than five times in a few months.
In the cryptocurrency markets, pricing is mostly psychological. It’s speculation that matters to investors, rather than ventures with excellent technology. If only technology and credible future goals were taken seriously, more than 40-50 altcoins would not reach significant volumes. Thus, their prices would rise extremely quickly.
The Future of AI Altcoins
Nvidia‘s shares are rising while Worldcoin’s WLD (up 40% in seven days), SingularityNET’s AGIX (up 43%), and FetchAI’s FET (up 18%) have seen increases. We have been writing for over a year about how the excitement for traditional artificial intelligence companies like OpenAI has invigorated the crypto AI markets.
But there is a problem. For example, Fetch surpassed a market value of 1.5 billion dollars. Looking at the broader picture, the value of all AI-focused tokens is over 10 billion dollars. If we also consider projects that claim to be involved in AI-related work, this means a market value exceeding 30 billion dollars.
Gemini, OpenAI, Nvidia are companies we know what they are doing in the field of artificial intelligence. Nvidia is tangible and visible for producing microchips that power the most sophisticated computers. Or OpenAI’s Sora and ChatGPT.
Let’s take the example of FET. This venture describes itself in an esoteric way as “a decentralized connectivity platform that enables devices to directly connect with digital agents that offer autonomous solutions to complex tasks.” In other words, users will be able to interact with artificial intelligence agents through interfaces offered to them for restaurants, airlines, or cleaning services. However, how it will gain an advantage over companies like Google, Microsoft, Amazon, and Apple in competition is unclear. Isn’t a market value of 1.5 billion dollars abnormal in such uncertainty? It’s not, and I wrote how in the first part.
Fetch says that FET will be the primary exchange medium on the network. It is emphasized that payments for network services will be made with this token. So why not any stablecoin or BTC? Last year on March 29th, DWF invested 40 million dollars in this venture. DWF is a topic of discussion in itself, and we have already addressed it at length. But the problem here is that DWF’s investments are more related to market-making activities. Moreover, considering the R&D budgets of companies like OpenAI that Fetch needs to compete with, these figures “undermine credibility” in competition.
Worldcoin, on the other hand, promises to scan your eye on a sphere to provide universal access to the global economy and include you in a place where everyone can benefit in the age of artificial intelligence. We should not ignore the fact that its only connection to artificial intelligence is Sam Altman.
The truth is that crypto and artificial intelligence may coexist in the future. However, today’s stories resemble the metaverse tales we heard at the end of 2021. When looking at the empty side of the glass, they all seem overvalued and have not produced products worth the prices they are valued at. And what was explained in the first part is the reality of crypto, and it seems to be the reason for this pricing.
