An intersection between Artificial Intelligence (AI) and Web3 – AI tokens are cryptocurrencies that are tied to AI projects and protocols. In the past few days, the AI token category has become a buzz topic among members of the global tech community. This came after tech giants like Apple and Nvidia reportedly started talks about investing in OpenAI. Venture firm Thrive Capital also invested $1 billion (approximately Rs. 78.70 crore) in OpenAI, which helped bring the topic of AI tokens into the limelight.
Deep Dive into AI Token Use Cases
AI tokens, which are tied to artificial intelligence projects, serve a variety of functions. Like traditional altcoins, these tokens are often built on blockchain platforms such as Ethereum and Cardano.
Developers in the AI sector are increasingly combining AI with cryptocurrency technology to improve transaction speed, transparency, and cost-efficiency, essential elements needed to support the growth and operation of their protocols.
AI tokens give their holders the power to participate in the decision-making of the AI projects the tokens are tied to. Furthermore, these cryptocurrencies act as the native payment currency for the AI projects they face, giving holders access to the range of services offered by the AI ecosystems, Dubai-based blockchain development firm Rock’n’Block explained via a recent after on LinkedIn.
AI tokens can become essential components for initiatives such as AI-driven marketplaces, AI-driven trading algorithms, and decentralized autonomous organizations (DAOs) that leverage artificial intelligence. Injective (INJ), Render (RENDER), Theta Token (THETA), Oasis Network (ROSE), SingularityNET (AGIX) have been Crypto.com.
What does the future of AI tokens look like?
VanEck, an asset manager that received approval to launch Ether ETFs in the U.S. earlier this year, has offered an optimistic view on AI-driven cryptocurrencies. In a detailed report published in February, Matthew Sigel, VanEck’s Head of Digital Assets Research, and Patrick Bush, Senior Investment Analyst for Digital Assets, explored the potential future of AI and cryptocurrency integration.
“There is a significant opportunity that public blockchains are the key to unlocking widespread adoption of AI and that AI applications will be the raison d’être of crypto. This is because crypto offers key foundational elements that AI requires, such as transparency, immutability, clearly defined property rights, and a hostile testing environment,” the report noted“We posit that the base case for AI-focused crypto projects will generate $10.2 billion (approximately Rs. 85,635 crore) in annual revenue by 2030.”
AI tokens, which serve as incentives for developers and users of AI projects, are developing into important drivers that can attract more people to explore new solutions and protocols in the future.
According to ZebPayThe potential for AI in the crypto world is enormous, as AI-powered crypto tokens can be programmed with the ability to detect illegal activity, analyze market trends, and identify investment opportunities.
Cryptocurrency is an unregulated digital currency, not a legal tender and subject to market risks. The information contained in the article is not intended to be and does not constitute financial advice, trading advice or any other advice or recommendation of any kind offered or endorsed by NDTV. NDTV is not responsible for any loss arising from any investment based on any perceived recommendation, forecast or any other information contained in the article.
