By Rajagopal Menon
AI has become a valuable asset for many industries, as it has proved its potential to revolutionize different segments in various ways. The popularity of AI was solidified with the success of ChatGPT and is now being used the world over.
In the Crypto industry too, AI has a lot of promise as it is deemed to create a level playing field for different players in the ecosystem and help them make constructive decisions. In the digital assets market, AI-based trading algorithms are gaining popularity, providing traders with valuable insights into market trends and predicting future price movements.
The rapid development of AI is expected to have a significant impact on various industries, including CeFi and DeFi. Starting with algorithms for trading tokens, predicting market movements, and analyzing prices of key tokens, to simplifying whitepapers for new entrants, it can go a long way in creating mainstream adoption of Crypto.
It also has the power to help a Web3 builder create the foundational documentation for his project with all the right ingredients such as tokenomics, underlying technology theorization, comparison with existing platforms, etc. In fact it has all the potential to enable the establishment of a growing community
CryptoGPT is a new platform that is gaining recognition. It claims that its underlying technology has received some support from various crypto platforms, and it aims to integrate with the global data market.
CryptoGPT was created to empower users to earn rewards by leveraging AI’s data collection and processing capabilities. Through NFTs, users can log data from various simple tasks of their daily lives. The token’s value is determined by an algorithm that tracks user behavior on the platform.
To enhance security and privacy, CryptoGPT claims to use Zero Knowledge Proof to store transactions. It also protects the identity of users and doesn’t allow data to be traced to the source. This combination of advanced protocols ensures that the network is both anonymous and stable.
Similar to other blockchains in the ecosystem, Crypto GPT supports a transparent, secure and efficient way to exchange data.
This has come at a time when the trillion dollar data market is being developed at a rapid scale and various industries are contributing to it. The idea for CryptoGPT is to enable the users to earn benefits by sharing their data while big conglomerates utilize them to build better, customized, and tailor made solutions. It is focussed towards industries such as logistics, healthcare, finance, tourism, etc.
According to Cryptorank.io, CryptoGPT blockchain hosts apps with 2+ million active users. It has a total supply of 3,000,000,000, out of which 11% is up for public sale.
What does the future hold?
The platform has rules embedded in smart contracts that is the foundation of its governance. It becomes more efficient as it receives more data from different sources and generates larger volumes of output. The platform generates revenue through transaction fees, data monetization, and sharing data with third parties such as large industries. All data collected are anonymous which ensures that the platform is safe for users to share aspects of their daily lives without breach of privacy.
CryptoGPT also offers staking for its native token, which generates value in the ecosystem. This value is used to incentivize contributors and to create liquidity reserves in case of any volatility in the market.
Given the ever growing need for data collection, analysis, and security, CryptoGPT’s model is well-positioned to take advantage of the market. However, like many new projects, it remains to be seen how successful it will be in terms of adoption and utility.
The tokenomics part of the project has also left doubts in the minds of experts. It is mentioned on Coinmarketcap that 1700 wallet addresses hold CryptoGPT. On the other hand, it has been mentioned that top 100 holders possess 99.5% of the circulating supply. If there isn’t more clarity provided for the 90% of the tokens that have not been accounted for yet, it could lead to sell offs and price fluctuations.
Some experts have expressed their concern about aspects such as the founding members of the project who have withdrawn their public identities after a brief period of having it published on the website. Others have questioned their claim of protecting privacy of users by asking for more details on the mechanism.
Despite being backed by popular Crypto platforms such as Bitget, Bitfinex, Bybit, UNISWAP, etc.,some experts have questioned its links to ChatGPT as it creates the perception of being associated with the popular AI platform which might mislead investors.
Overall, the model of CryptoGPT has potential to make the most of the AI revolution with the right incentive mechanisms. However, with a mixed sentiment in the market, it has a lot to prove before it gets a nod of trust from investors and analysts.
The author is vice-president, WazirX