The cryptocurrency industry has been plagued by a series of high-profile scams and scandals in the past. Although this has been a major setback, it does not mean that fraudsters have gone away. Recently, many crypto scammers have tried to cash in on the hype surrounding artificial intelligence, in the hopes of duping unsuspecting individuals out of their money. As your guide, I will help you understand the dubious business models that claim to merge these two completely different industries.
It's understandable to be cautious about the emergence of a new type of business that may lead to a flood of crypto-tokens taking advantage of the growing interest in AI. Previous cycles of hype have shown that when an idea is based solely on crypto, there is a tendency to believe that a decentralized database is needed for everything. From what we've seen so far, there may be three different uncreative attempts to merge AI and crypto. It's important to be aware of these possibilities as we move forward in this exciting and rapidly evolving space.
One idea that is being suggested is to use a cryptocurrency token to access an AI model or service like ChatGPT. This pitch takes advantage of the fact that the term "token" is used in both AI and crypto industries. However, it is important to note that AI tokens are not related to tokens used in the context of cryptocurrencies or blockchain-based ledgers. In AI models, tokens refer to a word or common syllable that is used as a unit for processing, typically within a large language model (LLM). While some AI services allow users to pay for subscriptions with cryptocurrencies, there is nothing particularly special about crypto-tokens that makes them more suitable to interact with LLM tokens. Despite this, some entrepreneurs may try to persuade you otherwise.
Another thing to look out for is the "data is the new oil" meme that was popular during the 2017 crypto ICO boom. There will be individuals trying to sell tokens that claim to reward people for contributing their data to an AI-training model, known as "data marketplaces." However, this concept made no sense in 2017 and it still doesn't make sense in 2023. If you have an online presence, your data is already out there, and there is no logical way to monetize it, whether it's blockchain-based or not. Anyone telling you otherwise is either not up-to-date with how most web services operate or is just mistaken. It's rare to find turnstiles in open fields.
It is expected that more tokens will emerge with names that include "AI" or "GPT" (although some already exist). Unfortunately, many cryptocurrency projects take advantage of uninformed individuals who make decisions based on light pattern association. Rest assured that some of these projects will try to take advantage of this tendency to its fullest extent.
In reality, none of these "AI plus crypto" tokens make sense to genuine AI developers. However, the cryptocurrency industry is known for creating B-list business models and trying to repackage them in hopes of attracting venture capitalists. This often includes rebranding existing crypto businesses in an attempt to sell tokens to unsuspecting retail investors.
It is important to remember that cryptocurrencies provide a valuable service by offering a way to store value that is resistant to censorship and that brings people together across borders. Essentially, cryptocurrency can be thought of as accounting software. AI, on the other hand, aims to imitate and enhance human thinking. These two technologies exist at opposite ends of the creativity spectrum for a specific reason.
