Coins with intelligence. How the crypto market played on the hype around ChatGPT

The popularity of OpenAI’s chatbot has caused a stir among traders and led to a trend in crypto-assets trading

Coins with intelligence. How the crypto market played on the hype around ChatGPT

Microsoft is ready to invest up to $10 billion in chatbot developer ChatGPT, the U.S. artificial intelligence lab OpenAI, and has been negotiating the terms of the deal for several months. OpenAI’s founders include Elon Musk.

Microsoft has previously invested $1 billion in OpenAI, and eventually intends to get 49% of the company to integrate its technology into its own search engine Bing, Office suite and cloud infrastructure Azure.

ChatGPT is a chatbot trained on a huge data set that can generate text from almost any field or program code in different languages. Unlike a number of its counterparts, it takes into account the context of the conversation, allowing it to engage in dialogue, giving a convincing impression of a conscious interlocutor. Since its launch last November 30, ChatGPT has become increasingly popular. Thanks to the viral growth on social networks, the project gained its first million users in just one week.

Projects in the sphere of artificial intelligence account for up to 10% of all venture capital investments. In 2022 about $70 billion were invested in the industry.

Code Outsourcing

ChatGPT can create software code on demand, including in Solidity, which is used in applications and smart contracts in the Ethereum ecosystem. Developers are already using the bot’s capabilities to find bugs in the code and to test it. ChatGPT can bring a group of developers’ code to a common standard, which is especially important for blockchain projects, some of which involve dozens of participants.

There are examples of full-fledged applications created in ChatGPT using common text queries by people who have never coded before. Talking to reporters from Fortune, a Canadian developer Tomiwa Odemidan said that he got the code of a fully working cryptocurrency wallet from ChatGPT, as well as its presentation and instructions for users. When the bot found errors in the code, it “politely apologized” and corrected them.

The cryptocurrency community found different ways to entrust the work to the chatbot. Combining code created by ChatGPT, and images, which are generated by other neural networks, you get complete NFT-collections, and bot tips about how to promote them in social networks, help to create a stir around them.

Resourceful ChatGPT users use it to find bugs and vulnerabilities in the code of blockchain projects with a reward program for the bugs found. The Immunefi platform has already rejected at least 15 attempts to get rewards from those who passed off the bot’s work as their own. The project manages a $135 million fund to pay “white hat hackers” who find vulnerabilities in decentralized financial platforms (DeFi). According to its representatives, despite first impressions, many of the reports created with ChatGPT were “beautifully written nonsense.”

Token growth

There are other application scenarios for ChatGPT in the cryptosphere, but it is interesting that the news background and popularity of the project manifested itself noticeably where it is not directly involved in any way. Tokens from blockchain projects somehow related to developments in the field of artificial intelligence have been rising in value since the beginning of January and often react with sharp jumps in value when news about OpenAI appears in the media.

At least nine coins, united by a common “narrative” around AI, posted gains of more than 50% in a week. The SingularityNET project token (AGIX) rose 18% when news broke about Microsoft’s plans to invest in OpenAI. A week later, the price of the token doubled; at the time of publication of this article, AGIX is worth about 20 cents. During the New Year’s holiday period, the coin did not appreciate more than 5 cents. (FET) token gained 80% over the week, and coins from The Graph (GRT), Ocean Protocol (OCEAN), Cortex (CTXC) and other assets from the “AI & Big Data” category also showed tens of percent growth. Amid a significant increase in their trading volumes, the largest cryptocurrency exchange Binance announced the launch of perpetual futures on AGIX and FET with a leverage up to 15x.

Developing the idea of a “narrative” of the crypto market around artificial intelligence, community members are looking for new information triggers that they believe can affect asset prices. Some low-liquid tokens in the same category have skyrocketed in price due to the growing number of buy orders during the rush of earnings-seeking traders. The price of the token of the Image Generation AI (IMGNAI) project, which allows using AI to create anime-style images, rose almost 7 times in a week.

Developers in this cryptocurrency-focused field have yet to prove viability and show a product that lives up to the developers’ promises. At a time of strong market hype, the coins that got into the “narrative” may be enough just to mention relevant technologies in roadmaps and promotional materials. Algorithms for projects whose assets have grown strongly in value may indeed employ artificial intelligence, but their economic model should also further justify the demand for tokens.

“Deceptive impression”

If you ask ChatGPT how exactly blockchain technology could be applied to AI, the bot replies that it could be used in creating “decentralized platforms for learning similar language models or for language translation systems.” According to the information the chatbot gives out, such platforms could offer users increased security and transparency, as well as facilitate the sharing of resources between organizations and developers.

In addition, blockchain technology can be used to create decentralized data storage and processing networks that can be used to learn and improve AI models. Something similar is offered by the aforementioned Ocean Protocol, whose developers claim to create a “new data economy.”

When asked by the chatbot what decentralization means in the context of its work, ChatGPT gives the answer that its platform is built on a “decentralized network such as blockchain.” This implies that its resources “are not controlled by a single entity or organization.”

OpenAI founder Sam Altman says that ChatGPT technology can give “a deceptive impression of grandeur,” adding that this is just a “preliminary view of progress.” For now, he says, “it would be a mistake to rely on it for anything important.”

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