Should you invest in Artificial Liquid Intelligence? Exploring the marriage of NFTs and AI
Important takeaways
- With Microsoft’s surprisingly high $10 billion investment in OpenAI (the startup behind the revolutionary ChatGPT) amid economic uncertainty, AI-related tokens have surged in value
- While cryptocurrency and the blockchain exploded in popularity in recent years, the hype is now all about artificial intelligence. Crypto and AI offer a unique long-term investment opportunity
- Artificial Liquid Intelligence (ALI) is the tool of Alethea blockchain, where the company has created intelligent NFTs as they try to combine generative AI and blockchain technology
Ever since the AI-powered chatbot ChatGPT hit the market late last year, there has been a lot of hype around the field of artificial intelligence. Over the years, news sources have hinted at a future heavily influenced by AI and machine learning. Yet we hadn’t experienced its power firsthand until generative AI products like ChatGPT and DALL-E 2 became available to the general public.
When the hype hit the market that Microsoft was investing $10 billion in OpenAI, many AI-related stocks and cryptocurrency coins increased in value as investors began betting on this sector. Alethea artificial liquid intelligence (ALI) token shot up 136% on this news.
If you want cryptocurrency exposure in your investment accounts, the Crypto Kit from Q.ai includes exposure to Bitcoin, Ethereum and other crypto assets using an AI assistant.
What is Alethea’s artificial floating intelligence?
Artificial Liquid Intelligence is the cryptocurrency token of the Alethea AI network. The company is focusing on becoming a research and development studio to combine generative AI and blockchain technology.
Alethea AI is a decentralized protocol for creating smart avatars that uses AI technology to allow characters to interact with humans. According to the official website, Alethea has made the following a priority when it comes to generative AI and the blockchain:
“Our mission is to use these technologies to enable decentralized ownership and democratic governance of AI.”
The company has set out to unlock the full potential of AI for humanity as a whole since Alethea AI has combined the power of AI into NFTs (Non-fungible Tokens). The platform has created a new type of NFT called intelligent NFT (iNFT), which allows users to create an NFT embedded with AI animation, voice recognition and generative AI capabilities. Developers on the platform can use the iNFT protocol to create, design, train and profit from their creations on the Alethea metaverse, known as Noah’s Ark.
These iNFTs are unique in that Alethea AI is the first company to take the merging of AI and NFTs to the next level by offering intelligent assets with personality traits and the ability to grow and improve based on the data they consume.
The unique connection between iNFTS and AI
An NFT represents a unique digital resource or a kind of collectible. These projects are hosted on the blockchain to create a permanent and publicly listed ownership register. Developers from Alethea believe that the intelligent metaverse, Noah’s Ark, will allow users to connect NFT projects with AI to offer new products. NFTs may represent a unique image or product or be treated as an investment instrument.
Mark Cuban invests in Alethea
It’s worth mentioning that Mark Cuban is one of the original backers of Alethea, as he participated in the company’s $16 million private token sale of intelligent NFTs for the metaverse back in 2021. At the time, Cuban was quoted as saying :
“While NFTs have continued to be exciting for collectors, I always try to invest in what’s next. Alethea AI has managed to uniquely combine AI-powered avatars secured on-chain as NFTs. The result is not only fun and entertaining, but the foundation for a level of interactivity that will rapidly evolve using Alethea’s technologies.”
What’s new with Alethea AI?
Alethea AI recently introduced its newest innovation, which is CharacterGPT. According to a tweet sent out by Alethea AI’s official account, here’s what makes this innovation unique:
“Alethea AI’s CharacterGPT is the world’s first multimodal generative AI system that enables the creation of interactive AI characters from a natural language prompt. It enables text-to-character generation to create unique, intelligent and tokenizable IP characters .”
The revolutionary AI system, CharacterGPT, allows users to create their own interactive character with a unique appearance, voice, intelligence and personality. Once your character is tokenized, you can work on its personality, train its intelligence abilities, and use it across other dApps on the AI protocol.
This is the latest step from Alethea as they attempt to bring ownership to generative AI. It is worth mentioning that the first iNFT, Alice, was auctioned at Sotheby’s in June 2021 for $478,000.
Should you invest in the ALI token?
The Alethea artificial liquid intelligence (ALI) token has been making headlines lately due to the growing popularity of generative AI as new products are released to the public.
According to CoinGecko, ALI is ranked number 237 by market capitalization, which is over $132 million. The price has increased by 300.2% in the last 30 days, and the current value is down 81.6% from the all-time high ALI reached last April.
While the token has seen its price rise recently due to buzz around generative AI, the crypto market has been extremely volatile over the past year. It is important to emphasize that buying tokens on decentralized exchanges is not yet as easy as buying stocks on your mobile device.
Merger of NFTs, Crypto and AI
While NFTs turned a lot of heads last year, the topic has slowed down tremendously in recent months, while AI is now gaining more attention. With the launch of DALL-E 2, it feels like a natural transition to use AI-generated art from a text message in NFT projects. Since users of DALL-E 2 are granted a creative commons license for use of the images, these images can be used for NFT-related artwork.
When considering investing in NFTs, it is important to consider recent market performance. Last year, the NFT market brought in around $24.7 billion in organic trading volume across all blockchains and marketplaces. According to DappRadar, this is a slight decrease from the $25.1 billion total from 2021 when interest in the NFT space soared.
What is the connection between crypto and AI?
Cryptocurrency and AI offer several interesting integrations. Here are some ways crypto and AI could connect going forward.
- Risk protection: Investing in cryptocurrency tokens can be much riskier than traditional stocks. However, AI can protect investors from catastrophic losses with algorithmic trading opportunities.
- Fraud detection: Blockchain has problems with fraud and scams due to the anonymous nature of the technology. AI can detect anomalies and detect possible fraudulent activity to prevent theft. Since AI can identify trends and make quick decisions with a lot of data, it is clear that this technology can improve the crypto space.
- Compliance and security: Banks are already using AI and machine learning in their security processes. Financial companies can use AI to detect security issues on the blockchain. The crypto room needs an extra layer of security to protect its users.
- Sentiment Analysis: When connected to the right data sources (such as news articles and social media comments), AI tools can estimate public sentiment on a particular cryptocurrency token or project.
How should you invest?
Although tokenization of AI seems like the next natural step for blockchain technology and the latest advances in machine learning, we are still far from mass adoption. After seeing losses in the cryptocurrency and NFT market over the past year, many are hesitant to invest in this space.
The good news is that you don’t have to look any further to see the intersection of AI and crypto, as we’re already offering a glimpse here at Q.ai. With our crypto kit, we put AI to work for retail investors who want to invest in the crypto space without trying to pick out individual currencies to invest in.
This crypto investment kit uses our AI to predict future performance and volatility for the coming week for various crypto trusts. AI then uses these predictions to find the optimal asset mix on a risk-adjusted basis. Your portfolio is also automatically rebalanced accordingly.
The bottom line
You can invest in artificial intelligence and cryptocurrency in many ways if you want to allocate funds in this direction. However, experienced investors understand the short-term and long-term risks of investing in new technologies. Once you understand how crypto and AI come together, you may decide that they deserve a coveted spot in your portfolio.
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