GPT-4 launch sends AI tokens skyrocketing – is it more than a meme?

Another AI update, another pump.

OpenAI, the US startup behind the hugely popular ChatGPT app, has released a new version of its software that is claimed to be 1,000 times more sophisticated than previous iterations.

The biggest improvement is in the software’s search capabilities, which will now accept images along with text input. The release of the first Chat-GPT version of OpenAI last November gave birth to the market AI narrative.

Since then, various AI crypto tokens have has increased considerably thanks to the hype.

IntoTheBlock analyst Juan Pellicer told Decrypt that “clearly the new narrative of technology is AI, and these coins benefit enormously from that.”

He added that this can be seen when examining token support SingularityNET (AGIX), which trades “with lower correlation levels compared to the rest of the crypto market.”

IntoTheBlock correlation matrix with the rest of the crypto market. Picture: InTheBlock.

Amid the latest GPT update, data from CoinGecko show AI-powered token gains were way higher than the rest of the market.

SingularityNET’s AGIX explodes 25% overnight, while others like (FETs), Ocean Protocol (OCEAN), and Cash (NMR) also posted double-digit gains.

Most AI tokens are “grifts”

However, experts raised concerns that the gains could be highly speculative.

CoinGecko’s head of research, Zhong Yang Chan, told Decrypt that “the current wave of AI crypto investment is likely driven more by speculation than fundamentals. Beyond the initial hype, investors and builders should focus on meaningful use cases that combine AI and blockchain.

Delphi Digital’s vice president of research, Aswhath Balakrishnan, echoed that sentiment, telling Decrypt that most AI tokens are “grifts” with “very few projects in space trying to thoughtfully integrating AI into cryptography.”

Nansen’s data for AGIX, FET and OCEAN tokens show no significant buying activity by wallets labeled as “smart money”. These portfolios are identified by the Ethereum analysis company as the most active and well-informed.

A sustainable rise in the price of a token is usually built after accumulation by smart money, which is absent from the current rally.

Smart money balance and number of wallets containing an AGIX token. Source: Nansen.

It’s not just mercurial investors who are turning to the new tech trend.

Elon Musk also seems to be turning his attention away from dog memes coins to the AI ​​hype.

The billionaire entrepreneur posted two tweets this morning mocking the rise of AI technology. The former was a sadistic take on machines taking over the planet, while the latter hinted at the potential exploits of the porn industry.


The views and opinions expressed by the author are for informational purposes only and do not constitute financial, investment or other advice.

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