Cryptocurrencies backed by Artificial Intelligence (AI) have been skyrocketing in the last few weeks owing to the momentum surrounding Artificial Intelligence.
Tokens such as Artificial Liquid Intelligence (ALI), Fetch AI (FET) and Singularity Net (AGIX) have surged as much as 220%, data from CoinDesk revealed.
Investors King understands that AI which broadly refers to the simulation of human intelligence in machines programmed to think and act like humans has been generating some media buzz in recent times.
For instance, there was huge momentum that accompanied the public launch of chatbot ChatGPT and image generation software Dall-E in mid-2022. OpenAI, the parent company of ChatGPT recently raised $10 billion from Microsoft at a $29 billion valuation.
It is assumed that such institutional interest has helped create a compelling argument for crypto traders to bet on AI-focused tokens as the next growth sector.
In addition, Artificial Intelligence could be seen in chatbots, self-driving cars, optimising search in online marketplaces and image-generation software among others.
Responding to the media buzz, Big Data Protocol (BDP) and Measurable Data (MDT) jumped on the hype. In the past week, BDP surged by more than 21,000%, Data from CoinGecko reveals.
Meanwhile, prominent traders and crypto personalities on Crypto Twitter are heralding AI-based tokens as the sector that might lead the next bull market cycle.
According to the founder of crypto wallet Frontier, Ravindra Kumar, “The growth opportunity around the AI and Web3 space combines early interest, potential and hype”.
However, Head of Marketing at Biconomy, Aditya Khanduri had a slight difference from the majority opinion.
“I believe that the current AI trend is still pretty speculative. Some of the tokens with more buzz and followings have pumped and it’s less about the actual tech behind it. There’s a lot of unanswered challenges and lots to be figured out,” Khanduri told CoinDesk in a recent chat.
Khanduri’s opinion is in line with the position of some market watchers who remain cautious about the AI token hype.