Beware of Crypto Grifters Looking to Crash the AI Party
The crypto industry is showing signs of moving past a series of high-profile scams and scandals, but that doesn’t mean the grifters have disappeared. In recent months, unscrupulous individuals in the crypto world have been attempting to tie the industry to the increasingly popular concept of artificial intelligence, all in an effort to separate unsuspecting individuals from their money.
A New Breed of Hustle
As this new breed of hustle emerges, it’s increasingly evident that it will spawn a wave of crypto-tokens seeking to capitalize on the growing enthusiasm for AI. It’s a pattern that’s been observed in past hype cycles – whenever there’s a crypto thesis, everything appears to require a decentralized database attached to it.
The Three Flavors of “AI Plus Crypto” Efforts
The lazy “AI plus crypto” efforts are poised to come in three different flavors, each with its own set of problems and misconceptions.
• In the first scenario, cryptocurrency tokens would be used for accessing an AI model or service, such as ChatGPT. This pitch often aims to capitalize on the confusion surrounding the use of “tokens” in both AI and crypto jargon. It’s important to understand that while the term “token” is used in both areas, they have entirely different meanings and applications.
• The next flavor involves attempts to leverage the “data is the new oil” sentiment that was prevalent during the 2017 crypto ICO boom. Grifters may try to sell tokens that claim to reward individuals for contributing their personal data to an AI-training model, even though this concept holds little logical weight.
• Lastly, we should anticipate the appearance of tokens bearing “AI” or “GPT” in their names, which essentially unravels into a pure farce, banking on the naivety of exuberant decision-makers.
The Dangers of Crypto Grifting
It’s crucial to recognize that these “AI plus crypto” shoehorned tokens hold little value to genuine AI developers. Nevertheless, the cryptocurrency industry has a propensity for rebranding existing businesses and hoping to attract venture capitalists willing to repackage them. An example is Helium, a company that initially focused on providing a wireless network for the “Internet of things” craze, but later pivoted to a crypto-based model which eventually faced issues related to the shaky economics it offered.
Therefore, it’s important for individuals to remain skeptical of these new attempts to unite AI and crypto, as the true value of cryptocurrencies lies in their censorship resistance and ability to unite people across borders. The world of AI operates on an entirely different level of creativity, and attempts to fully integrate it with the crypto industry should be approached with caution.
I’m a cryptocurrency and blockchain technology journalist. My work has been featured in major publications such as CoinDesk, Bitcoin Magazine, and VentureBeat. I’ve been a respected voice in the cryptocurrency community and my insights into the industry have helped shape its development.
