AI Coins are hot.
And I’m going to embed a video in this post where I take a look at some of the top AI Coins such as FET (Fetch.ai), AGIX (SingularityNET), and the OCEAN Protocol and go over some insights via screen recording. This will be near the end of this post.
But let’s look at the big picture first.
Here are some numbers to make you think: ChatGPT broke 100 million users in just 2 months. That’s so massive it’s opened up a brand new market category. There is a rush of apps and technologies built on top of Open AI’s ChatGPT.
So much so that Microsoft poured a cool $10 billion dollars into OpenAI, the company that created ChatGPT. Microsoft is desperate for users, and has plans to integrate ChatGPT into its dying search portal.
Wait, is it still called Bing? Does anyone use their search engine except old people who had it auto-install on their Dell? These are questions I don’t know the answer to, but I can tell you AI is on 🔥.
Recently, CoinGecko added a new category to their category list called Top Artificial Intelligence (AI) Coins by Market Cap.
And these coins which were nowhere near the top 100 and going to creep in and up the market cap rankings over 2023. That’s not even a prediction. That’s a fact that hasn’t happened yet.
Mass Adoption
Mass adoption plagues much of the crypto projects.
Some, like the meme coins, don’t worry about any use case! Hello Dogecoin and Baby Doge and DogeWale and DogeCola and - you get the picture.
But most projects are trying to create something. And one problem with many tokens is their useability. Some have awesome concepts, but no real product yet. Or it just doesn’t work. This is parallel with Web 3.0.
Web 3 is Gonna Save Us!
Currently, Web 3 offers some fantastic benefits.
According to ChatGPT, the benefits of Web3 are:
Decentralization: Web3 is built on decentralized technologies such as blockchain, which eliminates the need for intermediaries and makes the internet more secure and trustworthy.
Data ownership: Web3 gives users control over their data, which is stored in a decentralized network. This means that users have full ownership and control over their personal information and online identity.
Censorship resistance: Decentralization also makes it more difficult for governments or other entities to censor or restrict access to information.
Interoperability: Web3 technologies are designed to work together seamlessly, allowing for the creation of new decentralized applications (dApps) that can be used across different platforms and devices.
Financial independence: Web3 also enables financial independence, as users can transact and exchange value directly, without the need for intermediaries such as banks. This opens up new opportunities for financial inclusion and access to financial services.
Security: Web3 technologies are built with security in mind, and the decentralized nature of the network makes it more resistant to hacks and other types of cyber attacks.
Which, let’s face it, sound a little hopeful. How many people are using Web3? And how do you sign up?
Here is a link to Deso, one of the most promising Web3 social platforms. Try to find out how to sign up. Yeah, it’s a problem. Create a wallet. Read a whitepaper. No support. Hey - that last part is just like Meta (Facebook.)
It’s not like the clear signup path for users that have signed up and used ChatGPT in the past couple of months.
User engagement with an app is the juice. Everything else is just potentiality.
Web 3 Is A Hot Mess
Because Web3 is a mess. It’s hard for users to understand. And in terms of security, while Web 3 does offer better security, it also relies on users understanding how that security works.
Take the classic Web3 wallet, MetaMask.
You can install it with the default Ethereum chain. And then you can add more tokens and different chains. And you can add multiple profiles. For people who are not as familiar with MetaMask, it can become quite confusing. And what if they use a different Chrome profile or a different browser? Do you want it on both? And who actually runs support on this? And if there is support, doesn't that mean it’s not fully decentralized?
Metamask is not without flaws. Major ones, too.
Personally, I have had the MetaMask extension get corrupted on my browser and needed to re-install it. I have also had my MetaMask hacked. Both of these require resetting the wallet with a 12-word pass phrase that needs to be stored.
Storing online is problematic, because it can be hacked. But paper is not ideal. Words can become difficult to read over time, or it could be destroyed by water damage or a fire. Gone.
I highly recommend taking a backup with a fireproof metal seed phrase keeper like this one.
But how many wallets will you have eventually? If you want to get involved with a project like STEPN, you need a Solana wallet. So if you use some of these Web3 apps, you will end up with multiple 12 or 24-word seed phrases to protect.
How many people will lose significant sums of crypto because of the random events above? How many will have it stolen by a spouse when the marriage is falling apart? Nobody promoting the bright future of NFTs and Web3 seems to mention these obvious security flaws and inconveniences.
So while security is better, it can also be the cause of a catastrophic loss.
Speaking of security, please start using random passwords and good password manager like this one.
AI is now
But AI is now. Using ChatGPT is easy. You don’t need a tutorial on how to create an account. It’s simple.
And there are lots of tools built on top of it after only 2 months, like this free way to summarize YouTube videos:
You can add that to Chrome here.
And unlike Web3, it’s easy and immediately useful.
But AI is coming
But make no mistake. If I learned anything from watching Westworld (until it got too weird) it’s that AI is coming.
And you can one day be a real cowboy 🤡 just like Arthur Morgan.
But seriously, AI will gain traction - and gain traction faster than other crypto market segments. Expect the AI tokens to start popping up on more exchanges in the coming months.
Fetch is already on Coinbase. And many of the others are on KuCoin and OKX (which are great exchanges for those looking to pull in some bigger profits with altcoins.
Make no mistake, we are early. But it’s a sector you need to have your eyes on - especially because in terms of investing, it’s NOT mainstream. The vast majority of the volume is on DeFi platforms.
Check out a special walkthrough of a couple of the most promising AI tokens:
There’s a lot to unpack in the world of AI.
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Let me know what I got right and what you disagree with in the comments. And as always, DYOR. And if you feel particularly generous, give this a share as others would find it valuable to read.