Crypto Grifters Set Their Sights on AI
In recent months, the crypto industry has been witnessing a new wave of attempts at combining the world of cryptocurrency with the buzz around artificial intelligence. But, as one skeptical observer points out, these business models may be more about separating people from their money than any actual innovation.
AI and Crypto – Two Unlikely Companions
The enthusiasm for AI is now being sought as a way to create a new genre of crypto-tokens. With experience from previous hype cycles, it seems that if all you have is a crypto thesis, everything starts to look like it needs a decentralized database. The intersection between AI and crypto has resulted in three main types of efforts to entice and deceive potential investors.
The Not-So-Smart Token
One of the strategies being employed is the introduction of a cryptocurrency token designed to provide access to an AI model or service. The intention behind this initiative is to exploit the confusion over the use of the term “tokens” in both the world of AI and the world of cryptocurrency. However, it is essential to note that while tokens may be used in AI models, this has nothing to do with crypto-tokens and blockchain-based ledgers. Despite this, entrepreneurs are actively trying to convince individuals otherwise.
The Data Marketplaces
Another effort to capitalize on the AI frenzy is through token rewards for contributing personal data to AI-training models, known as “data marketplaces.” However, this method remains dubious and makes little sense to genuine AI developers. This approach is similar to the “data is the new oil” meme that was prominent during the 2017 crypto ICO boom and is largely unfounded.
AI and GPT Tokens
Lastly, crypto tokens with “AI” or “GPT” in their names have been emerging in the market. These tokens are often part of cryptocurrency projects that are exploiting the naivety of people who are making decisions based on patterns and associations.
Industry Repackaging
The cryptocurrency industry has a history of rebranding existing businesses in the hopes of selling tokens to unsuspecting investors. Cases such as Helium and Worldcoin serve as cautionary tales of failed attempts to integrate crypto into businesses and platforms.
Despite the industry’s attempt at marrying AI and cryptocurrency, it is crucial to remember that the main value of cryptocurrencies lies in their role as a censorship-resistant store of value. On the other hand, AI seeks to replicate human thought and amplify it. While both technologies are valuable in their own right, it’s essential to understand that they exist on different ends of the spectrum of creativity for a reason.
I have been writing about crypto for over two years. I have a vast amount of experience in the industry and my work has been featured on some of the biggest publications in the space.
