Up 750% this year, could this AI crypto token reach $1 soon?
Driven by the huge hype surrounding ChatGPT, SingularityNET (AGIX 41.36%) has emerged as one of the favorite AI crypto tokens for investors. SingularityNET is up more than 750% for the year and is now trading around $0.40. The latest price estimates now value SingularityNET as high as $3.50, suggesting that this crypto token may still have more upside potential.
But how realistic is a price target of even $1? After all, at the beginning of this year, SingularityNET was trading for just $0.05. And it’s not like this crypto token hasn’t been around for a while either. SingularityNET was launched more than five years ago and it has never traded higher than $1.86. Its 52-week high is just $0.67. So let’s stress test the idea that SingularityNET is going to break through the $1 mark this year.
Get on the ChatGPT hype bandwagon
For long-term investors, the first red flag is that the price of SingularityNET is still extremely correlated with the buzz and hype around ChatGPT. It worked wonders when ChatGPT was the hottest topic in the tech world. For example, even the rumor that Elon Musk might be working with a ChatGPT competitor was enough to send the price of SingularityNET up 11% in just 24 hours.
Image source: Getty Images.
However, a lot has happened in the past two months that may cool some of the early hype. For example, there have been some embarrassing mishaps as major tech giants rushed to market their own versions of ChatGPT. This has signaled that perhaps AI technology is not quite ready for prime time. As a result, some of the early hype could easily dissipate later this year, and that could bring a strong correction to the price of SingularityNET.
What are the catalysts for SingularityNET?
No one questions that SingularityNET has world-class AI technology. After all, SingularityNET’s technology helps power Sophia, arguably the most famous AI-powered humanoid robot in the world. What other robot has been on The Tonight Showgave speeches to world leaders, traveled the globe, hung out with top celebrities and gained citizenship in a developed country?
But investors always ask, “What have you done for me lately?” So for SingularityNET to more than double in price and reach the $1 mark, it must continue to create real products and services that make the AGIX token even more valuable. After all, there are plenty of other AI crypto-token challengers out there, including Fetch.AI (OILY 5.02%)which is up a whopping 365% this year.
The good news, from an investment perspective, is that SingularityNET is both a platform and a marketplace. This means that SingularityNET has the technology to help anyone build, share and monetize their own AI services or products. It is the platform piece in the puzzle. And SingularityNET also has a marketplace where anyone can browse, evaluate and buy AI-powered services using the AGIX token. It is the marketplace in the puzzle.
So a growth catalyst for SingularityNET can take one of two different forms. It could be a third party leveraging the SingularityNET platform to create a grand AI product. Or it could be a “killer app” on the SingularityNET marketplace that everyone wants to use, download and buy.
From a platform perspective, an exciting development could involve Rejuve.ai, a new human life extension project that utilizes technology from SingularityNET. Who doesn’t want to live longer? A new crypto token for Rejuve.ai has just launched, and this could spark further investor interest in all the transformational applications of SingularityNET’s technology.
Should you buy SingularityNET?
While recent gains are impressive, SingularityNET is still the crypto world’s version of a penny stock. Remember: On January 1, 2023, SingularityNET was traded for just kroner. So buyer beware. At some level, people buy SingularityNET because other people buy SingularityNET, and that’s exactly how investors get burned in the end with penny stocks.
If you’re thinking of investing in any crypto AI token (not just SingularityNET), make sure you’re doing it for the right reasons, and not just for the possibility of massive short-term gains. When it comes to SingularityNET, you should know something about the technology and understand how it can be used to drive future growth. It will help you discover new catalysts and arrive at a real value. That being said, I am bullish on SingularityNET for the long term and believe it could easily reach the $1 mark within the next 24 months.
