Web 3 on Fire: AI Hype
Also: US to ban staking, Sandbox 🤝 Saudi Arabia and more
As always in crypto, the market is ever-changing and it can be difficult to keep up. The space is more competitive than ever, with new projects launching every day and existing ones continuing to push the boundaries. That's why it's important for us to stay informed and keep our eyes open for the latest developments. Today we'll be talking about AI tokens, FBI seizing $260,000 in crypto due a tip off from crypto twitter, the deal between Saudis and SAND, South Korea searching for Do Kwon in Serbia, Coinbase CEO responding to rumors about US banning crypto staking and how institutionalized investors prefer to invest in AI.
So, here's what recently caught our eye:
AI tokens are increasing in value as the hype surrounding AI chatbots grows
AI tokens are soaring as a result of the recent AI chatbot releases. Big data protocol (BDP) is leading the field with a 1,400% increase in just seven days. It is now trading around $0.48 and is trailed by SingularityDAO (SDAO) and SingularityNET (AGIX), both of which have witnessed large gains of up to 200%. The rising popularity of AI chatbots has most certainly contributed to this pump of AI and big data tokens. Outside of crypto, Google just announced its Bard bot, while Microsoft's Bing search engine now includes ChatGPT.
Although the hype surrounding AI tokens is real, it's essential to be mindful that their underlying technology and infrastructure must first be created before they can become a viable option for investing.
@AndreCronjeTech Andre we’ve already solved the great question of how to combine blockchain and AI, the solution apparently is just launching an ERC20 token with AI in the name😂
— zefram.eth (@boredGenius)
Feb 8, 2023
With the financial models that AI tokens use to bring their projects to life often being highly experimental, it is essential for investors to tread cautiously. As of now, these tokens effectively just provide gambling and price speculation opportunities - so it is best not to place too much trust in them yet.
FBI seized over $260,000 in crypto and NFTs after a tip-off from Twitter
FBI has seized around $260,000 in crypto and NFTs after they were tipped off by a crypto twitter user.
A user that goes by ZachXBT on the social media platform helped to bust Chase Senecal, a resident of Brunswick, Maine, by finding connections between a $60,000 watch he purchased with stolen funds and a string of NFT hack attacks in mid-2022.
16/ After months and months of tracking their group it’s nice to know one of the main perpetrators (Chase Senecal) for NFT/crypto phishing attacks has been identified. Others in his group like Popbob have yet to be caught
Hopefully at some point victims will take legal action
— ZachXBT (@zachxbt)
Sep 1, 2022
So, FBI seized 86.5678 ETH ($116,433), two NFTs (Bored Ape Yacht Club and Doodle) worth over $100,000 and the Audemars Piguet Royal Oak Watch valued at $41,000 from Chase. ZachXBT previously accused him of being part of a multi-million dollar crypto scheme that compromised more than 600 Discord servers and 12 Twitter accounts.
The arrest has been seen as a huge victory for the crypto community, but it's just a small part of a much larger battle against cybercrime that is being waged daily. The scams and hacks that people are exposed to when dealing with crypto aren't expected to stop anytime soon, so it's always important to stay vigilant and educated about the latest threats.
The Sandbox and Saudi Arabia strike a deal
The Sandbox and the country of Saudi Arabia have joined forces, but we don't know how or what for yet. It's all a bit mysterious, and it's anyone's guess what kind of things will take place in their Metaverse.
"It was a true honor to sign our partnership between The Sandbox and the Saudi Arabia Digital Government Authority" - Sandbox' CEO annunced. What this partnership entails is still unknown, but crypto community is excited to explore the possibilities.
It was a true honor to sign our MOU partnership ceremony between @TheSandboxGame and the Saudi Arabia Digital Government Authority (DGA) during #LEAP 2023 conference, and we look forward to exploring, advising and supporting mutually each other in activations of the Metaverse twitter.com/i/web/status/1…
— Sebastien 🏞 (@borgetsebastien)
Feb 7, 2023
Saudi Arabia's government mentioned the Metaverse before, so it's no surprise they jumped at the opportunity to partner with The Sandbox. They plan on utilizing this partnership for some of their digital activities, but what exactly they have in mind still remains a mystery.
$SAND price immediately jumped after the news was announced, showing that investors believe this partnership has a lot of potential. But as to what kind of potential, only time will tell.
South Korean authorities went to Serbia to search for Do Kwon
South Korean authorities are still playing whac-a-mole with Do Kwon, the notorious former Terra chief who has been on the run since last May. Despite issuing an international arrest warrant four months ago, the fugitive CEO has managed to evade capture and it appears that Korea is running out of ideas when it comes to tracking him down.
South Korean Officials Go to Serbia to Catch Do Kwon, $LUNA 's founder.
Kown's crypto wallet exchanged 9.46 BTC for fiat at an crypto ATM in Belgrade before the new year.
#DoKwon $LUNC #LUNACLASSIC#LUNC
— Cryptoday (@_Cryptoday_)
Feb 9, 2023
Desperate times call for desperate measures, so Korean officials decided to take the show on the road and traveled to Serbia earlier this month in a last-ditch attempt at nabbing Kwon.
The delegation reportedly included a member of Seoul’s prosecutor’s office and a senior Justice Ministry official. Serbia and South Korea have signed no extradition treaty, but they have both agreed to the European Convention on Extradition - which, of course, means that Kwon could still be handed over by Serbia, if Serbians decide to take pity on the South Koreans and give them a hand. Otherwise, it looks like Kwon might be able to laugh his way into the sunset.
Coinbase CEO says that restricting staking in US is a "terrible path"
The CEO of Coinbase, Brian Armstrong, recently warned of the "terrible path" the U.S. could take if it were to restrict crypto staking in the country.
Last year, Gary Gensler, Chair of the SEC suggested that tokens in proof-of-stake networks could be classified as securities. Armstrong wants to ensure that companies can continue to grow in the U.S., without facing restrictive regulations that aren't clear. He said that staking is a service that helps companies reduce their carbon footprints, increase network security and improve scalability.
2/ Staking is a really important innovation in crypto. It allows users to participate directly in running open crypto networks. Staking brings many positive improvements to the space, including scalability, increased security, and reduced carbon footprints.
— Brian Armstrong (@brian_armstrong)
Feb 8, 2023
He argues that if the U.S. restricts crypto staking it would create a disadvantage for companies, that encourage startups to move offshore and put innovation at risk. He calls for a proactive approach, where the U.S. works to build out the capabilities that will make it competitive in this space and keep entrepreneurs and companies in the country.
The U.S. has indeed been slow to properly regulate crypto, but regulating the industry doesn't mean that important services like staking should just be restricted. With the right approach and guidance, the U.S. can create a balanced regulatory framework that encourages growth and innovation without sacrificing the interests of consumers.
Research Corner: Institutional investors are eager to invest in AI
JP Morgan has recently released the much-anticipated seventh edition of their e-Trading Edit report, providing a comprehensive outlook into institutional traders' sentiments and expectations in regards to trading technology, cryptocurrency and AI. With insights from investors worldwide on these topics 2023 promises to be an intriguing year for global markets.
The results show that 53% of the traders believe AI and machine learning are the most influential factors for emerging trends in trading technology. This is followed by a healthy 33% who believe cryptocurrency will be a major player in the near future. Furthermore, nearly 9 out of 10 respondents indicated that they expected to see greater automation of trading processes over the next three years.
This essentially means that most institutional investors are ready to invest in AI rather than crypto and other digital assets. This big focus on AI is reflective of the growing demand for algorithmic and automated trading, recent AI hype with the chat bots in the media that we've mentioned at the start of this post, and the quick adoption of AI technologies across various industries.
What can this mean for crypto? While it appears as though AI and machine learning are the dominant forces investors are looking to capitalize on, crypto still holds a lot of potential. The markets will regulate themselves, and investors will naturally move towards the tested solutions and solutions with proven returns. But we can only expect that as AI and crypto technologies continue to evolve, investors will continue to be attracted to both in the future.
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That's all for now, frens.
We'll see you next week. And remember, the market conditions are temporary, but our commitment to building a better DeFi is here to stay. Thanks for joining us and we look forward to seeing you back next week. Cheers!
Yours, The 🔥 Team
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