Recently, crypto AI tokens rode the coattails of AI chip maker Nvidia’s blockbuster earnings report. As Nvidia’s stock sailed north, so too did tokens like Worldcoin’s WLD (40% in seven days), SingularityNET’s AGIX (43%), and FetchAI’s FET (18%), according to a February 22 CoinDesk article.
This isn’t the first-time enthusiasm for traditional AI companies, like OpenAI, has invigorated crypto AI markets. Following exuberance over OpenAI’s ChatGPT 3 early last year, Crypto AI’s had a moment. By at least one calculation, their collective value exceeded $4 billion. Fetch.ai’s token, FET, for example, rocketed from around 6 cents last December to a height of 54 cents on February 7.
But there’s a difference between traditional AI companies and crypto AI companies. We know what ChatGPT or Google’s Gemini do. Consumers can use them. Nvidia manufactures microchips that power the most sophisticated computers. What do the technologies behind crypto AI tokens do?
Fetch.ai, for example, has esoterically described itself as “a decentralized connectivity platform that enables devices to connect directly with digital agents delivering autonomous solutions to complex tasks.” It purports to connect users to AI-powered digital “agents” (basically, AI assistants) that might help users make restaurant reservations, plan travel, or book a house cleaning by interfacing with AI agents for the restaurants, airlines, or cleaning services.
How little-known Fetch plans to best the likes of Google, Microsoft, Amazon, and Apple, who dominate the digital assistant space (and, in the case of Google and Microsoft, AI as well) is unclear. Less clear is what role their FET token plays in the business other than to raise money for the company and, presumably, earn returns when the token price rockets up. Fetch says that FET is “the utility token and the key medium of exchange on the Fetch.ai network,” explaining that “FET can be used to pay for services in the Fetch ecosystem and network transaction fees.” Why not use USD, BTC, or a stablecoin?
Also worth consideration is Fetch’s announcement on March 29 last year of a $40 million “investment” from DWF labs. Less than three weeks later, CoinDesk published an article titled, “Crypto Market Maker DWF Labs’ More Than $200M in Deals…
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