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The Ultimate Guide to AI Tokens and Coins: How to Invest in Artificial Intelligence

Key Takeaways

The intersection of AI and blockchains has created amazing opportunities for investors willing to take risks.

While many projects are doomed to fail, a handful of established players are in the AI/blockchain space.

The potential for AI blockchains seems high, but so is the risk. If you venture into the space, do so with caution and reasonable expectations.

The Bull Case for AI on Blockchains

AI and the blockchain are both technologies that can transform the way we handle everything online and even the global economy itself. The decentralization of the blockchain, combined with the autonomy provided by AI models, promises to increase productivity, lower costs, and streamline several industries. Investing early in the right combination of blockchain and AI technology and its associated token may net you massive gains in the future.

The Bear Case for AI on Blockchains

Thanks to rapid advances in recent years, AI has emerged as the latest buzzword in technology. While some use cases exist where combining AI with blockchain technology can deliver good results, these are currently fewer than the hype suggests. The stated objectives of many AI token projects are either impractical or overly ambitious and come with a high degree of risk. In some cases, projects merely tack on the notion of using AI to drive up interest without delivering much in the way of AI features. This approach could mean interest in this market sector will be short-lived and built primarily on hype.

Top AI Tokens and Coins

Bittensor is a highly ambitious AI blockchain project that was conceived in 2019. It aims to create a decentralized marketplace where peers can sell computing resources openly in exchange for rewards.

At present, large organizations like OpenAI and Google spend billions of dollars to buy the expensive hardware needed to power AI research. Even smaller developers and startups must lease computing resources from cloud service providers like Amazon, which can quickly balloon in scale (and price).

Bittensor aims to mitigate some of these limited resource issues by providing a transparent, decentralized alternative to such services. Nodes on the network can donate GPU resources to other nodes to support high-performance workflows for projects like AI.

Native Token

The native token of the Bittensor project is called TAO. It acts as the reward token for the following parties on the blockchain:

  • For miners who contribute computing resources to various AI subnets on the platform.
  • For validators who stake their TAO to validate transactions and ensure network security.

Traders and investors can buy and sell TAO through significant exchanges like Binance, KuCoin, and MEXC.

TAO was designed to be a token with finite limits, like bitcoin. Only 21 million TAO can ever be mined. At present, around 7,200 TAOs are being issued to miners and validators every day on Bittensor.

Future Prospects

As a blockchain project, Bittensor is growing rapidly due to the recent hype generated by AI. At its peak of $730 on March 8, 2024, the token value increased 1825% in a single year. The market cap has breached the $10 billion mark as of Q1 2024.

Much of that growth is based on hype and hope of future adoption. Although Bittensor’s decentralized AI approach has great potential, it is also incredibly ambitious and involves major feasibility, governance, privacy, and security challenges.

The blockchain currently has 32 different subnets or unique marketplaces focusing on various AI applications like healthcare diagnostics, AI text and chat, and pre-training. Bittensor hopes to expand to over 1000 subnets.

If Bittensor can deliver on its promise of a thriving AI marketplace, it may become one of the most valuable blockchains in crypto. However, there are far too many unknown variables in the AI and blockchain realms to make any solid predictions.

The Render Network is a blockchain project founded by Otoy in 2016 and officially launched in 2020. Like Bittensor, it seeks to pool computing resources from idle graphics processors (GPUs) and sell them to users who need GPU power to render images and videos.

Originally launched on the Polygon blockchain, Render Network completed its migration to Solana in late 2023. The move was implemented to facilitate major upgrades to the network’s tokenomics and other features.

Native Token

RNDR/RENDER is the native token of the Render Network. The token exists on Ethereum/Polygon as RNDR, while it is called RENDER on Solana.

After the upgrades, the maximum supply of RNDR was reduced to 536 million tokens from its original value of 2.147 billion.

Like TAO, it can be used as a staking token for validator services and to reward node operators who provide GPU services to the network.

A total of 381 million RNDR tokens have already been released. Over 55% of the total supply is available for sale – people who want to buy GPU services on the network can use the token to pay the node providers.

Future Prospects

The price of RNDR has witnessed massive gains in recent months. From a low of $1.3 in September 2023, the token peaked at $13 in March, a 1000% increase. Although it has since corrected to around $8 at the time of writing, it still represents gains of 350% year-on-year. And as they say – buy the dip.

This meteoric rise can be attributed to two main reasons:

  1. Otoy’s OctaneX app launched on the Apple ecosystem, with the option for users to access the Render Network.
  2. Render Network’s decision to venture beyond basic GPU rendering services to include AI image generation and editing.

Otoy is already an established name in the cloud-based rendering space. Their services are used in diverse industries, such as video game development and movies. Since GPUs are in high demand for AI development these days, Render Network’s pivot makes a lot of sense.

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