It’s hard to imagine two technologies trendier than artificial intelligence (AI) and cryptocurrency, so it’s no surprise that the two fields have converged in the form of AI cryptocurrencies. .
We’ve looked at some of the biggest AI cryptocurrencies by market capitalization, according to CoinMarketCap*. But first, here’s a primer on what they are.
The cryptocurrency market is largely unregulated in the UK, so you won’t have any protection if something goes wrong. Buying cryptocurrency is speculative and your capital is at risk, which means you could lose some or all of your money.
What are cryptocurrencies?
Cryptocurrencies are a form of digital currency. They can be spent or exchanged, but they are not issued by central banks or stored in traditional financial institutions.
Instead, they are decentralized. This means that balance and transaction records are not controlled by banks or payment providers, but rather by people who volunteer to track everything using specialized software.
Volunteers participate because in doing so they have the opportunity to earn valuable cryptocurrency without having to pay for it.
Huge speculation in cryptocurrency values has led to a boom in the number and value of assets in the space over the past few years – peaking in November 2021 before collapsing in the spring of 2022.
What is AI?
Artificial Intelligence (AI) is a field of computing that allows machines to make data-driven decisions, increasingly mimicking human intelligence.
Popular recent examples include AI-generated artwork – where a program interprets user prompts, written in natural language, to create digital artwork, and ChatGPT, an application capable of ‘”write” based on a brief submitted by the user.
In both cases, the outputs are close enough to what a real person might create that they can be mistaken for human creation, and these applications are becoming increasingly sophisticated.
The use cases for AI are effectively limitless and the technology has found its way into the cryptocurrency space.
What is an AI cryptocurrency?
AI cryptocurrencies are tokens that power AI blockchain platforms such as The Graph and SingularityNET. Users spend tokens in order to use the platforms and the benefits of their built-in artificial intelligence.
We looked at the 10 biggest AI crypto projects based on their market capitalization to see how AI is being used in the industry.
The graph (GRT)
Market capitalization: £515,989,012
The Graph is a protocol for indexing and querying data from blockchains in the same way that Google indexes and queries data from websites. Indexing blockchain data can be difficult, but The Graph aims to change that by organizing data into smaller “sub-graphs”.
Its native Ethereum-based cryptocurrency, GRT, was worth £0.0671 at the time of writing, down from its February 2021 peak of £2.09.
Market capitalization: £160 million
SingularityNET is a blockchain platform that allows anyone to create, share, and monetize AI services. It has an internal marketplace where users can browse and pay for AI services in the platform’s native cryptocurrency – AGIX.
Developers can make money with AI solutions and models without having to build applications for end users from scratch. Likewise, developers can purchase AI solutions and models to use in their applications.
AGIX is currently worth £0.14. In January 2018, AGIX peaked at £1.34.
Market capitalization: £152.7 million
Fetch.ai is a blockchain-based AI and machine learning platform. Fetch.ai is all about automating business tasks like data processing and trading. Its native cryptocurrency, FET, is used to pay for transactions on the network.
At the time of writing, FET was valued at £0.19, down from its September 2021 peak of £0.87.
Ocean protocol (ocean)
Market capitalization: £126.2 million
Ocean Protocol is an Ethereum blockchain-based platform that enables businesses and individuals to exchange and monetize data and data-based services. This could involve making data available to researchers and startups without the data being abandoned by data holders.
OCEAN is currently trading at £0.20, down from its April 2021 peak of £1.42
iExec RLC (RLC)
Market capitalization: £105.5m
iExec is an AI blockchain platform that allows users to monetize their computing power and access cloud computing resources on demand.
RLC is iExec’s native cryptocurrency and is used to pay for the use of services on the platform. RLC is currently trading at £1.30, down from an all-time high of around £10 in October 2021.
Market capitalization: £78.1 million
Numerai is an AI blockchain network that acts as a hedge fund, using artificial intelligence and machine learning to invest in stock markets around the world.
Numeraire (NMR) is the native currency of Numerai, facilitating payments within the network. It is currently trading at £13.22, down from a 2017 high of £132.
Market capitalization: £67.6m
dKargo is a blockchain that uses AI to solve trust issues in the logistics industry. It does this by providing participants with credible data, thanks to the indelible nature of blockchain technology.
dKargo’s native toke, DKA, is currently worth £0.02, down from around £0.54 in winter 2021.
Phala Network (PHA)
Market capitalization: £50.4 million
Phala Network is another AI-augmented blockchain platform regarding cloud computing, but with a focus on privacy. It positions itself as a decentralized alternative to traditional cloud computing services such as Amazon AWS or Google Cloud.
PHA is the network’s native currency and is used to pay for cloud services within Phala Network. It is currently trading at £0.11, down from a peak of £1 in May 2021.
Market capitalization: £40.1 million
Covalent is a network that aggregates data from various blockchains, including Ethereum, Polygon, and Avalanche. Developers can then leverage this multi-chain data to build applications that solve problems in industries like finance and retail.
CQT is the native token that powers the network. Its current value is £0.08. At its peak in August 2021, CQT was worth £1.42.
Market capitalization: £43.8 million
CTXC, at the time of writing, was valued at £0.21. In May 2018, it was trading at £1.50.
* Market cap figures correct as of January 17, 2023
How to buy AI cryptocurrencies?
Many AI cryptocurrencies can be purchased using crypto exchanges like Crypto.com and Coinbase, just like traditional cryptocurrencies like Bitcoin and Ethereum.
To trade, you will need to open an account – which often involves identity verification steps and depositing fiat currency. You will then be able to navigate to the page of the AI cryptocurrency you want to buy on the exchange, enter the amount you want to buy, and execute the trade.
How to store AI cryptocurrencies?
Most exchanges offer a free crypto wallet facility to store your private and public keys – the credentials needed to spend or trade your crypto assets. If you prefer, you can store your keys offline cold wallet.
Cold wallets are arguably more secure than hot wallets because hackers can’t target them as easily. However, if you lose your login information for your cold wallet, you will not get the assistance in regaining access to your keys that you would get with a hot wallet.
Are AI cryptocurrencies safe?
Whether AI cryptocurrencies are safe from hackers or the volatility of the crypto market depends on how you store them and your attitude towards risk.
On the latter, no cryptocurrency is immune to market instability, and 2022 was the year crypto volatility was laid bare.
Bitcoin, for example, started the year at around £30,000 and ended it at around £13,000 (-56%), but not before hitting around £36,000 in March. Ethereum suffered a similar fate, starting 2022 in the region of £2,000 and ending the year at just under £1,000.
AI cryptocurrencies are no different. GRT fell from £0.44 in January 2022 to £0.06 (-86%) in December, while AGIX fell from £0.14 to £0.03 (-78%).
The UK’s financial watchdog, the Financial Conduct Authority (FCA), has repeatedly issued warnings about investing in cryptocurrency, saying people should be prepared to lose all the money they have. they invest.
And when it comes to hackers, crypto wallets and exchanges will likely remain a target for criminals, leaving people’s assets at the mercy of the security they and their exchanges implement.
Cold wallets are a protection against hacks, but they become vulnerable once connected to a computer connected to the Internet.
Meanwhile, exchanges continue to come under attack. 483 Crypto.com users were hacked last year and lost assets worth up to $35 million. Trade after tightening their security measures as hackers expose their weaknesses, but it’s a cat-and-mouse game that seems certain to continue.