AI and Metaverse tokens race ever higher, so beware

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Last Updated on 6 November 2023 by CryptoTips.eu

We already talked about AI tokens having a really good 2023 last week, but what we’ve seen over the last week really defies even our wildest dreams.

Of course, cryptotokens always tend to go higher or lower as the news of the moment changes or the economic conditions become more positive or negative, but what we see with regard to AI coins is quite different altogether.

SingulairtyNET (obviously derived from Ray Kurzweil’s Singularity is near book title) and Fetch.ai are the latest examples. Both went up more than 100% in just a few days at one point this week.

Metaverse tokens such as the Sandbox are also doing very well.

Much of the recent surge in AI tokens has to do with the growing interest of the public for chatbot ChatGPT and the image generation software called Dall E. Both programs are just traditional software that don’t actually use cryptocurrencies or blockchain, but both could probably be linked to crypto.

ChatGPT was launched by the company OpenAI, which recently raised $10 billion from Microsoft and is currently valued at $29 billion. Such major institutional interest has helped create a compelling case for crypto traders to bet on AI-focused tokens as the next growth sector now.

YouTube video

It kind of reminds me of the movie ‘Transcendence’ where Johnny Depp’s character dies physically but as an AI lives on the net, wins a huge amount of money daytrading and then tries to change the world. The film flopped in 2014 but if you were to launch it in 2023 it would probably score.

In other words, AI may become the next big hype, but it’s still uncertain.

Aditya Khanduri, Head of Marketing at Biconomy, explained:

I believe that the current AI trend is still pretty speculative, leading to a jump for such tokens. Some of the tokens with more buzz and followings have pumped and it’s less about the actual tech behind it.

This is because the current AI tokens and web3 projects may not yet know what these decentralized AI tools look like. There’s a lot of unanswered challenges and lots to be figured out.

Right now, it resembles the craziness that started in 2022 around NFTs or the craziness that started around DeFi (decentralized finance) tokens in 2020. So be careful before investing in tokens like these and DYOR (do your own research).

Jeroen Kok

Jeroen is one of the lead copywriters on Cryptotips.eu and discusses all recent events in the crypto market. This includes news updates, but also price analyzes and more. He developed his passion for cryptocurrency during the bull run in 2017. He has learned a lot since then. The combination of cryptocurrency and creative writing is perfect for Jeroen and an excellent way to share his knowledge with a wide audience. Find me on LinkedIn / [email protected]
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