Where is crypto headed next? These 3 symbols offer a glimpse of the future

Despite the uncertainty and volatility of the crypto market, a tremendous amount of innovation continues to take place in the industry. Cryptocurrencies are already much more than just digital currencies. With the launch of each new technology – such as Web3, the metaverse or artificial intelligence – new crypto tokens become part of history.

To give you an idea of ​​where crypto is headed, consider these three tokens that are reinventing what cryptocurrencies can be.

SingularityNET

With the advent of ChatGPT and the latest phase of the AI ​​revolution, it seems every tech company is trying to figure out how to monetize AI and tap into the public’s seemingly unquenchable thirst for AI-powered innovation. Already, Alphabet (GOOGL 0.33%), Microsoft (MSFT -1.26%)and Meta platforms (META -0.87%) has debuted new AI-powered offerings. But if you’re looking for a crypto angle to the AI ​​revolution, look no further SingularityNET (AGIX -2.51%).

Image source: Getty Images.

The name of SingularityNET refers to the much hyped “singularity” – the hypothetical moment in the future when a self-upgrading machine learning intelligence will surpass the capacity of human intelligence. The goal of SingularityNET is to make the power of accessible AI technology widely available to everyone. To make that possible, the native token of the SingularityNET platform allows users to buy and sell AI products, as well as exchange data, tools and models to train AI robots.

Think of the SingularityNET platform as an app store for AI tools where you pay with the SingularityNET token. Right now, there are a number of offerings powered by AI, including language and speech recognition tools, as well as image generation tools, on the platform.

Until ChatGPT appeared on the scene, SingularityNET flew largely under investors’ radar, with the token trading for mere pennies. But in January, the token rose. It is now trading at $0.541, up more than 1,000% for the year. As long as the buzz around ChatGPT persists, there will likely be tremendous upward momentum for SingularityNET.

Optimism

Optimism (OP -3.47%) is a Layer 2 scaling solution for Ethereum (ETH -0.33%)in line with Polygon (MATIC -2.88%)which was the most talked about Layer 2 solution for Ethereum last year.

At the end of February, Optimism made headlines when it unveiled a unique collaboration with Coin base (COIN -0.25%), the second largest cryptocurrency exchange in the world. Coinbase used open source technology from Optimism to create its own proprietary Layer 2 scaling solution, called Base. Also, Coinbase signed on to become a core developer of Optimism’s crypto ecosystem.

What this means in practice is that Optimism is suddenly one of the hottest cryptos on the planet, with a 200% price gain so far this year. Decentralized finance (DeFi) tokens in the Optimism ecosystem are on fire right now, based on the long-term potential of the Coinbase deal. One idea being floated right now is that Coinbase could create a massive new DeFi ecosystem for its large institutional investor base, and it would all be powered by Optimism’s technology.

BitDAO

BitDAO (BIT -1.65%) is a decentralized autonomous organization (DAO) built on the Ethereum blockchain. The best way to think of a DAO is that it is a completely new governance structure where power is completely decentralized, and all activities take place on the blockchain. While DAOs can be used for just about anything, the goal of BitDAO is to invest in Web3, crypto and blockchain projects.

Right now, BitDAO is considering launching a $200 million monster fund to invest in 100 early-stage blockchain projects. It has backing from some of the biggest tech names on the planet, including billionaire Peter Thiel, crypto hedge fund Pantera Capital, and Singapore-based cryptocurrency exchange Bybit.

What makes BitDAO so unique is that it changes how people invest in crypto. Sometimes it behaves like an angel investment company, putting money into small start-up projects. At other times it behaves like a hedge fund, using sophisticated risk management and hedging techniques. And at other times it behaves like a local investment club where everyone gets to vote on what the group invests in next. Any way you look at it, the price is up about 75% in 2023.

Picking winners and losers

Of course, it’s hard to pick winners and losers when it comes to new technologies. For example, while SingularityNET may be the current market leader when it comes to new AI crypto tokens, there are many AI tokens out there that could be adopted at scale later. And it’s still not certain what roles Google, Meta or Microsoft might play in shaping the future of AI.

I will keep my eyes on cryptos that appear to have the support of influential investors, large listed companies and large institutional funds. These cryptos, in my opinion, have some of the best prospects for future success simply because they have a greater margin for error. Investing in crypto is risky and volatile enough, so it’s best to look for ways to reduce your risk.