It is difficult to think of two technologies that are more in the zeitgeist than artificial intelligence (AI) and cryptocurrency, so it is not surprising that the two fields have come together in the form of AI cryptocurrencies.
We looked at some of the biggest AI cryptocurrencies by market capitalization, according to CoinMarketCap*. But first, here’s a primer on what they are.
The cryptocurrency market in India is not regulated, so you are not immune if something goes wrong. Buying cryptocurrency is speculative and your capital is at risk, which means you may lose all your money.
What are Cryptocurrencies?
Cryptocurrencies are a type of digital currency. It can be used or bought, but not issued by central banks or held in traditional financial institutions.
But they are decentralized. In other words, records of balances and transactions are not kept by banks or payment providers, but they are kept by people who volunteer to keep track of everything using in technical programs.
Volunteers invest because in doing so they have the opportunity to earn valuable cryptocurrency without having to pay.
Attention to cryptocurrencies has led to a boom in the number and value of assets in the space in recent years – rising in November 2021 before falling to the spring of 2022.
What is AI?
Artificial Intelligence (AI) is a field of computer science that allows machines to make decisions on data, augmenting human knowledge.
New popular features include AI-generated artwork – where a program interprets the user’s comments, written in natural language, to create pieces of artwork, and ChatGPT, an application that can ‘write’ as a shorthand submitted by the user.
In both cases, the results are so close to what a real person would do that they could be mistaken for human activity, and these applications are increasing.
The use cases for AI are limitless, and the technology has found its way into the cryptocurrency space.
What is AI Cryptocurrency?
AI cryptocurrencies are tokens that power blockchain AI platforms like The Graph and SingularityNET. Users use tokens to use platforms and benefits of their integrated artificial intelligence.
We looked at the 10 biggest AI crypto projects according to their market caps to see how AI is being used in the sector.
The Picture (GRT)
Market Limit: About INR 100 billion
Graph is a protocol for indexing and querying data from blockchains in the same way that Google indexes and queries data from websites. Computing blockchain data can be difficult, but Graph aims to change that by organizing data into smaller “subgraphs”.
Its original, Ethereum-based cryptocurrency, GRT, was priced at around INR 6.88 at the time of writing, down from its February 2021 high of around INR 205.68.
Market Limit: About INR 45 billion
SingularityNET is a blockchain platform that allows anyone to build, share and monetise AI services. It has an internal market where users can view and pay for AI services in the native cryptocurrency of the platform – AGIX.
Developers can make money from AI solutions and features without having to fully build apps for end users. Likewise, developers can purchase AI solutions and features to use in their applications.
The current price of AGIX is around INR 13.77. In January 2018, AGIX was up around INR 131.91.
Market Limit: About INR 28 billion
Fetch.ai is an AI and machine learning platform based on the blockchain. Fetch.ai is about doing business activities like data transfer and trading. Its native cryptocurrency, FET, is used to pay for online transactions.
At the time of writing, FET is valued at around INR 18.70, from its September 2021 high of around INR 85.64.
Ocean Process (Ocean)
Market Limit: About INR 19 billion
Ocean Protocol is an Ethereum-blockchain project that allows businesses and individuals to exchange and monetize data and data services. This can include making data available to researchers and startups without the data being abandoned by data holders.
OCEAN is currently trading at around INR 19.69, from its April 2021 high of around INR 139.82.
iExec RLC (RLC)
Market Limit: About INR 11 billion
iExec is an AI blockchain platform that allows users to monetize their computing power, and access cloud computing resources.
RLC is the real cryptocurrency of iExec, and is used to pay for the use of services on the platform. RLC is currently trading around INR 128.03, from an all-time high of around INR 984.90 in October of 2021.
Market Limit: About INR 9 billion
Numerai is an AI blockchain network that works as a hedge fund, using artificial intelligence and machine learning to make investments in global stock markets.
Numeraire (NMR) is the real currency of Numerai, which facilitates payments in the network. It now costs around INR 1,302.40, from a high of around INR 13,004.49 in 2017.
Market Limit: About INR 8 billion
dKargo is a blockchain that uses AI to solve reliability problems in the logistics sector. It does this by providing participants with reliable data, thanks to the indelible nature of blockchain technology.
dKargo’s actual price, DKA, is currently priced at around INR 1.97, down from around INR 53.19 in the winter of 2021.
Phala System (PHA)
Market Limit: About INR 7 billion
Phala Network is a new AI-enhanced blockchain platform based on cloud computing, but with a focus on privacy. It is positioned as a decentralized alternative to traditional cloud computing services such as Amazon AWS or Google Cloud.
PHA is the real currency of the network, and is used to pay for cloud services within the Phala Network. It is currently trading at around INR 10.83, from a high of around INR 98.49 in May 2021.
Market Limit: About INR 7 billion
Covalent is a network that aggregates data from various blockchains, including Ethereum, Polygon and Avalanche. Developers can use this multi-chain data to develop software to solve problems in areas such as finance and marketing.
CQT is the real brand that powers the site. Its current value is around INR 7.87. At its peak in August 2021, CQT will be around INR 139.89.
Market Limit: About INR 4 billion
Cortex is a blockchain platform that allows users to upload and implement smart features. The idea is that AI can be incorporated into smart contracts and decentralized applications (dApps).
CTXC, at the time of writing, is valued at around INR 20.69. After May of 2018, it was priced at around INR 147.79.
*Market figures are correct as of March 6, 2023
How do I buy AI Cryptocurrencies?
Many cryptocurrencies can be bought using crypto exchanges like Crypto.com and Coinbase, as well as traditional cryptocurrencies like Bitcoin and Ethereum.
In order to trade, you need to open an account – which usually involves some identity verification tasks, and deposit some fiat currency. Then you can navigate to the side of the AI cryptocurrency you want to buy in the exchange, enter the amount you want to buy and execute the transaction.
How do I manage AI Cryptocurrencies?
Most exchanges offer a free crypto wallet where you store your private and public keys – the credentials you need to spend or buy your crypto assets. If you prefer, you can store your keys in a cooler outside.
They are more secure than hot wallets, as hackers cannot easily hack them. However, if you lose your key details for your cold wallet, you won’t have the support to recover your keys that you get with a hot wallet.
Are AI Cryptocurrencies Safe?
Whether AI cryptocurrencies are safe – from hackers or from the volatility of the crypto market – depends on how you protect them and your attitude to risk.
In the end, no crypto currency will be safe from the success of the market, and 2022 will be the year in which the volatility of crypto is shown.
Bitcoin, for example, started the year at around INR 2 million and ended it at around INR 1 million (-56%), but not before reaching INR 3 million in March. The result of Ethereum is similar, starting 2022 in the region of INR 196,928.40 INR 1 lakh and ending the year below INR 98,463.29.
AI cryptocurrencies are no different. GRT fell from around INR 43.32 in January 2022 to INR 5.90 (-86%) in December, while AGIX fell from INR 13.78 to INR 2.95 (-78%).
For hackers, crypto wallets and exchanges continue to be a target for criminals – leaving people’s assets at the mercy of the security they and their exchanges achieve.
Cold wallets are resistant to hacks, but they become vulnerable when connected to a computer connected to the Internet.
Meanwhile, the changes are ongoing. 483 Crypto.com users were hacked last year and lost assets up to INR 8.28 cr. Change after strengthening their security measures when hackers reveal vulnerabilities, but it’s a game of cat and mouse that will continue.