Ever since ChatGPT hit the market, investments related to artificial intelligence (AI) have been highly sought after. This market attention has also stimulated speculation and development of concept currencies in the cryptocurrency industry. However, in a recent report released by Coinbase research analyst David Han, it is pointed out that these concept currencies have been excessively speculated in the short term. Given the rapid changes in AI technology, investors should approach the long-term sustainability of most AI concept currencies with caution.
AI projects in the cryptocurrency field are inevitably centered around two core technologies: “cryptocurrency” and “AI”. However, cryptocurrency projects often aim for decentralization, while AI products currently on the market heavily rely on centralized components and data sources. From this perspective, it is difficult to seamlessly integrate these two technologies. The Coinbase analyst stated that even though the combination of these two technologies holds promising opportunities and development space in terms of “improving blockchain data to create human-readable transactions and data analysis” and “assisting in decentralizing AI infrastructure,” overall uncertainty remains significant.
Despite the considerable uncertainty and risks in the future prospects, investors do not seem to share the same view. Many AI concept currencies have recently outperformed Bitcoin, as well as related concept stocks such as NVIDIA and Microsoft.
In response to this, the Coinbase analyst attributes this phenomenon to widespread market sentiment and the hype surrounding AI-related news. The analyst also points out that the value potential of many AI concept currencies may be overly exaggerated and may lack sustainable demand-driven factors in the short to medium term. The Coinbase analyst advises investors to exercise caution when participating in this investment field.
(This article is authorized and reprinted from GT Radar)
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