Picture a scenario where artificial intelligence (AI) and cryptocurrency, two vital technologies of today, come together. This is not just a what-if; it’s a real thing known as AI cryptocurrencies.
Let’s start by checking out the top AI cryptocurrencies based on market value, as per CoinMarketCap (as of April 20, 2024). But before that, let’s get a quick overview of what they actually are.
In Australia, the cryptocurrency market doesn’t have any rules, so if things go south, you’re pretty much on your own. When you buy cryptocurrency, it’s a bit like taking a gamble as your money could be at risk, and you might end up losing some or even all of it.
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What Are Cryptocurrencies?
they’re different from regular money issued by banks or kept in traditional financial places.
What is AI?
What’s an AI cryptocurrency?
1. Fetch.AI (FET)
Market cap: $US1.4 billion
Fetch.ai is a blockchain-based platform that utilizes AI and machine learning. Fetch.ai focuses on automating various business operations like data analysis and exchange. The network utilizes its own cryptocurrency, FET, to settle transaction fees. Fetch.ai has recently suggested a merger with SingularityNET and Ocean Protocol, which is currently being considered for approval. If the three-way merger proceeds, all tokens from the three projects will be combined into a single token called "ASI", which has been named the "Artificial Superintelligence Alliance".
As of June 10, 2024, FET was valued at $US1.71 down from its peak of $US3.47 from March.
2. Render (RNDR)
Market cap: $US3.5 billion
Render Network is a decentralized platform that links artists and creators with strong computer resources to support the creation of top-notch 3D graphics and animations. The platform permits individuals to combine their unused computer power, which creators can utilize for a fee. The platform utilizes its unique cryptocurrency, RNDR, to compensate individuals who provide their computing power and to enable transactions within the network. Render Network is simplifying the process for artists to produce visual content in sectors such as gaming, virtual reality, and the metaverse, eliminating the requirement for costly hardware.
RNDR was trading at $US9.14 as of June 10, 2024, down from its recent peak of $US13.60 in March.
3. The Graph (GRT)
The Graph is a protocol that indexes and queries blockchain data like Google does with website data. Indexing data on blockchain can pose difficulties, however The Graph seeks to address this by grouping data into smaller units called 'subgraphs'.
Its native, Ethereum-based cryptocurrency, GRT, was trading at $US0.2637 as of June 10, 2024, down from its February 2021 peak of US$2.34.
4. Bittensor (TAO)
Market cap: $US2.4 billion
Bittensor's goal is to transform machine learning platform development in order to build a neural internet. The initiative is setting up a platform for machine intelligence to collaborate and share their AI models, forming a "digital hive mind." This new decentralized approach aims to facilitate rapid dissemination and exchange of information between AI systems.
As of June 10, 2024, TAO was trading at $US351.87, down from its recent peak of $US676 at the start of the April.
5. Theta Network (THETA)
Market cap: $US1.9 billion
As of June 10, 2024, one THETA token was trading at $US1.94, down from its peak of $US14.24 in 2021.
6. Akash Network (AKT)
Market cap: $US1 billion
Akash Network is a decentralized cloud computing platform that employs blockchain technology to establish a marketplace for purchasing and selling idle computing resources. The goal of the platform is to offer a cheaper and more adaptable option compared to traditional centralized cloud service providers. Individuals have the ability to launch and oversee applications on the decentralized platform, utilizing the native token AKT for transactions. The token has the additional function of incentivizing network contributors and overseeing the platform.
AKT was worth $US4.21 as of June 10, 2024, down from its peak of $US14.24 in 2021.
7. SingularityNET (AGIX)
Market cap: $US934 million
Developers have the potential to earn income from AI solutions and models without the need to create and develop complete apps for end users. Likewise, developers have the option to purchase AI solutions and models for integration into their applications.
SingularityNET is involved in the suggested merger called the "Artificial Superintelligence Merger" with Fetch.ai and Ocean Protocol.
AGIX was worth $US0.727 as of June 10, 2024. Back in January 2018, AGIX peaked at $US1.85.
8. AIOZ Network (AIOZ)
Market cap: $US689 million
AIOZ was priced at $US0.6272 as of June 10, 2024, down from its April 2021 all-time high of $US2.17.
9. Echelon Prime (PRIME)
Market cap: $US444 million
Echelon Prime combines blockchain technology and AI to elevate the gaming experience within its ecosystem. The platform assists game development studios and projects by offering the essential tools and infrastructure to integrate AI-powered features and blockchain-based token incentives into their games. "Colony," a pivotal game in the Echelon Prime ecosystem, relies extensively on AI agents in different facets of gameplay, resulting in a distinctive and ever-changing gaming atmosphere.
The PRIME token from Echelon Prime is utilized for rewarding tokens and participating in governance voting in the ecosystem, enabling players to influence the progress and course of AI-driven games such as "Colony."
As of June 10, 2024, PRIME's value was $US12.46, which was lower than its peak of $US28.08 in March.
10. Ocean Protocol (Ocean)
Market cap: $US419million
Ocean Protocol is a platform built on Ethereum that enables individuals and businesses to trade and profit from data and data-focused services. This could include sharing data with researchers and startups without the data owners giving up control of the data.
Ocean is trading at $US0.7383as of June 10,2024, down from its April 2021 peak of US$1.94
How Do I Buy AI Cryptocurrencies?
Various AI digital currencies can be purchased through crypto platforms like Binance and Kraken, in the same way as regular cryptocurrencies such as Bitcoin and Ethereum.
In order to engage in trading, you will be required to create an account, which typically includes verifying your identity and adding funds in the form of fiat currency. Afterward, you can visit the AI cryptocurrency's page on the exchange, input the desired amount for purchase, and complete the transaction.
For little projects, you might have to utilize a web3 wallet like Metamask to link to a decentralized exchange like Uniswap to make purchases.
What Is the Best Way to Store AI Cryptocurrencies?
Many exchanges provide a complimentary crypto wallet service for holding your private and public keys, which are required for managing your crypto assets through spending or trading. If you so choose, you have the option to keep your keys in a cold wallet that is offline.
Cold wallets may be considered more secure than hot wallets because they are less susceptible to attacks from hackers. Nevertheless, if you misplace your login information for your cold wallet, you will not receive assistance in recovering access to your keys like you would with a hot wallet.
Is it secure to invest in AI cryptocurrencies?
The safety of AI cryptocurrencies, whether from hackers or market volatility, relies on storage method and risk tolerance.
In 2022, all cryptocurrencies were exposed to market instability, showing the true extent of their volatility.
For instance, Bitcoin began the year at approximately $US47,000 and finished around $US16,000 by year-end, marking a 65% decrease. Ethereum experienced a comparable outcome, commencing 2022 around $US3,700 and finishing the year slightly below $US1,200.
AI-based digital currencies were impacted even more severely. GRT's value dropped by 92%, falling from $US0.64 in January 2022 to $0.05 in December, while AGIX's value decreased by 80%, dropping from $US0.20 to $US0.04.
The digital asset space comes with built-in risks, in addition to the extreme volatility that crypto investors need to navigate, there is also the danger of scams or theft. Cryptocurrency wallets and exchanges are expected to continue being a prime target for criminals, putting individuals' assets in the hands of the security measures they and their exchanges put in place.
Cold wallets, also known as Hardware Wallets, provide protection against hacks, but their security is compromised when connected to an internet-enabled computer.
In the meantime, there are ongoing attacks on exchanges: 483 users of Crypto.com were hacked in the previous year, resulting in a loss of assets valued at up to US$35m. After enhancing their security measures due to hackers revealing vulnerabilities, exchanges are engaged in a continuous cat-and-mouse game.
