The interest of investors in every aspect of AI has led to a surge in tokens such as FET (FetchAI) and WLD (Worldcoin). But are these initiatives a wise choice for learning about the potential of AI?
Recently, the AI chip manufacturer Nvidia’s record-breaking revenue report enabled cryptocurrency AI tokens to gain momentum. According to a CoinDesk report from the 22nd of February, tokens like Worldcoin’s WLD (40 percent in seven days), SingularityNET’s AGIX (43%) and FetchAI’s FET (18%) also increased in value together with Nvidia’s shares.
The excitement for established AI companies, such as OpenAI, has stimulated the cryptocurrency AI markets on previous occasions. Crypto AIs had a moment after the enthusiasm surrounding OpenAI’s ChatGPT 3 at the beginning of the year. Their combined value was over four billion, according to at least one estimation. For instance, FET, the token of Fetch.ai, shot up from about 6 cents in December of last year to a peak of 54 cents in value on the 7th of February.
However, standard and cryptocurrency artificial intelligence organizations are different. What Google’s Gemini and ChatGPT do is well known. Customers can take benefit of them. Microchips made by Nvidia power the most advanced computers. What are the functions of the crypto AI token technologies?
One technical description of Fetch.ai is that it is “a decentralized connection system that allows devices to communicate to virtual bots providing autonomous answers to complex tasks.” It claims to link consumers with AI-powered digital “agents” (simply, AI advisors) that may assist users with booking home cleaning, making holiday plans, or making restaurant reservations by interacting with artificial intelligence (AI) systems that operate with restaurants, airlines, and cleaning providers.
It’s still being determined how insignificant startup Fetch intends to defeat powerful competitors like Microsoft, Amazon, Google, and Apple, who rule the digital assistant market (as well as, in the case of both Microsoft and Google, AI as well). The purpose that their FET token serves in the company beyond raising capital and earning rewards when its price increases are less evident. According to Fetch, FET is “the value token and the primary means of trade on the Fetch.ai network,” adding that users can use it to cover network transaction costs as well as services within the Fetch ecosystem. Why not utilize a stablecoin, BTC, or USD?
Fetch’s announcement of a forty-million-dollar investment from DWF labs on the 29th of March of last year is also important to consider on. Just three weeks later, an article titled “Crypto Market Maker DWF Labs’ More Than $200M in Deals Blur What ‘Investing’ Means” appeared on CoinDesk. The article questioned if DWF’s investments were essentially just transactions conducted over the counter, risked by the possibility that DWF would manipulate token prices to the issuers and their interests.
The business concept of Worldcoin is also still being determined. According to its mission statement, Worldcoin wants to create a space where all people can prosper in the AI era by giving them a stake in the global marketplace regardless of their nationality or background. How does it hope to realize this ambitious objective? Naturally, by seeing into everyone’s eyes with a scary orb. The stated goal is to enable online identity verification for users to receive certain government benefits when voting online or using a digital system. However, the business has encountered some serious regulatory challenges related to the apparent privacy issues, which most recently led Worldcoin to withdraw from the markets in Brazil, France, and India.
Do investors genuinely think that Worldcoin, whose co-founder has contributed to the development of the AI phase, would be able to safeguard our digital “personhood” in this new era? And why do they require a token, just like with Fetch?
Commentators have speculated that Worldcoin could be linked to the well-known pump-and-dump pattern in cryptocurrency, in which early-stage coin promoters fuel the price up. Insiders and experienced traders quickly pull out, and the price decreases, leaving almost everybody with damages. In July, over the first four trading days, WLD surged from $1.91 to $2.72. Then, in September, it dropped to $1.01. It has reached a record-high level of $7.64 as of this moment in time.
FET has also reached a record high. It was at $.06 in November, and it is currently $1.77.
Although I’m not a trader, current prices cannot last. Price fluctuations do not always indicate a pump and dumping. However, investors would be wise to take Sam Altman’s statements into account.
While talking about Worldcoin, he stated that there will always be some initial fraud in every new system. Worldcoin carries some risks, just like previous cryptocurrency AI efforts.
