Artificial Intelligence (AI) has stepped into every aspect of life, and the blockchain world hasn’t been left out. Today, the intersection of AI and cryptocurrency has birthed numerous AI-related crypto tokens and projects. These tokens play a role in the way we interact with AI.
Blockchain, on the other hand, offers new platforms and methods of transacting business that are different from traditional systems, with features like decentralisation, smart contracts, and immutability.
If you are an AI enthusiast or a crypto trader, you might be interested in AI tokens and what they have to offer. With this topic, we will discuss eight facts about AI tokens, what they are, their examples, uses, and differences from regular coins.
What Are AI Tokens?
In the crypto context, they are also known as AI crypto coins; AI tokens are cryptocurrencies related to diverse AI platforms, projects, and applications. These coins are built on blockchain systems, and each type has its own use case.
Their major functionalities include the following;
- It is the official currency for their native AI-based platforms, which users can use to transact and get access to data.
- Partaking in governance, whereby holders can vote and influence the direction and development of a project through decision-making.
- It can be used as a reward to those who contribute to the project development by providing data, training, and computing power to the AI platform.
Also Read: What Is Fully Diluted Valuation in Crypto?
Top 10 Trending AI Tokens To Buy
Here are some projects that are worth looking into if you want to invest in crypto AI tokens:
- Render (RENDER): The Render Network is a decentralized GPU compute platform for 3D rendering, machine learning, and AI applications. It connects node operators and artists for scale, speed, and economic efficiency. You can buy Render on Binance, DigiFinex, and Coinbase Exchange.
- AI16z: AI16z is an AI-led venture capital DAO that aims to revolutionise venture capitalism by utilising AI and collective intelligence for investment decisions. It is available on Bitget, OrangeX, and Gate.io.
- NEAR Protocol: NEAR Protocol is a Proof-of-Stake Layer-1 blockchain that makes it easy for developers to build decentralized apps to improve transaction speed, scalability, and cost-effectiveness. NEAR protocol is on sale on HTX, Binance, and Gate.io.
- Arkham (ARKM): Arkham blockchain uses artificial intelligence (AI) to make the blockchain and on-chain data more public. It is on sale at Binance, Gate.io, and LBank.
- Fetch AI (FET): Fetch.ai uses AI-powered Digital Twins to automate DeFi, enabling secure, flexible, and non-custodial asset management with personalised oracles.
- Ocean Protocol (OCEAN): Ocean Protocol is a blockchain-based ecosystem that enables secure data sharing for AI, staking for quality assurance, and protection against Sybil attacks.
- SingularityNET (AGIX): SingularityNet is a decentralised global AI marketplace powered by AGIX tokens. With AGIX, Users can purchase AI services, AI developers can publish and monetise tools, and holders can vote on project development, stake tokens, and earn rewards.
- Numeraire (NMR): Numeraire (NMR) is a token used on Numerai, where data scientists stake it on AI stock predictions, earning rewards or losing tokens.
- Injective (INJ): Injective is a Layer 1 blockchain designed for DeFi applications. It offers developers on-chain financial infrastructure modules and compatibility with most blockchains, including EVM chains like Ethereum and non-EVM chains like Solana.
- Bittensor (TAO): Bittensor is a decentralized machine learning network where models collaborate, earn TAO rewards, and provide AI services in an open, trustless, and incentivized blockchain ecosystem.
Read More: How To Convert Your USDT To Naira Instantly
Eight (8) Facts About AI Tokens
As a newbie, here are just eight facts you should know about crypto AI coins:
- Utility-Driven: Unlike cryptocurrencies like Bitcoin, AI tokens primarily function as utility tokens within AI-powered platforms and ecosystems. They provide access to specific services, data, and tools.
- Fueling AI Ecosystems: AI tokens are essential for powering transactions and operations within AI platforms. They facilitate payments for services, data access, and participation in various activities.
- Governance Power: Many AI tokens grant holders governance rights, allowing them to participate in decision-making processes related to the platform’s development and future direction.
- Incentivizing Contributions: AI tokens often serve as rewards for users who contribute to the growth and improvement of AI projects. This can include providing data and computational resources or developing AI applications.
- Access to Advanced AI: Holding AI tokens can unlock access to advanced AI features, such as machine learning models, data analysis tools, and exclusive AI-powered services.
- Underlying Technology: AI tokens leverage blockchain technology to ensure secure and transparent transactions and facilitate decentralized governance and operations.
- Diverse Use Cases: AI tokens are used in many AI projects, including those focused on data analysis, machine learning, decentralized marketplaces, and autonomous AI agents.
- Potential for Growth: The AI token market is still relatively new but has significant growth potential as AI technology advances and integrates with blockchain solutions.
Also Read: Ten Facts About Memecoin Trading
Differences Between Regular Cryptocurrencies and AI Tokens
Here, you will find what separates regular cryptocurrencies from AI tokens.
| Features | Regular Cryptos | AI Tokens |
| Purpose & Use Case | Primarily used for payments, store of value, and investment. | Power AI-driven platforms, pay for AI services, and incentivize data sharing. |
| Technology and Functionality | Uses blockchain for decentralized transactions and security. | Integrates blockchain with AI for decentralized computation, machine learning, and predictive analytics. |
| Governance & Utility | It focuses on financial transactions with no direct AI or data integration. | Used to govern AI networks, access AI-generated insights, and facilitate AI model training. |
| Data & Monetization | Fetch.ai (FET), SingularityNET (AGIX), and Ocean Protocol (OCEAN). | Supports AI-driven data sharing, enabling users to monetize data for AI model training. |
| Examples | Bitcoin (BTC), Ethereum (ETH), Binance Coin (BNB). | Fetch.ai (FET), SingularityNET (AGIX), Ocean Protocol (OCEAN). |
Read More: What Is Chain Abstraction?
Conclusion
The entry of AI into the crypto space is inevitable, and this has led to the rise of AI tokens. AI tokens power AI platforms, offering access and governance. They’re different from regular crypto and have big growth potential.
If you are interested in them, this post, in some way, must have answered any questions you might have while satisfying your curiosity on what they are and do.
Remember to look out for the risks associated with them before investing. This post is not financial advice; do your own research and due diligence at all times
Frequently Asked Questions About AI Tokens
Q1. Are AI coins a good investment?
AI coins are a good investment because they offer tech-driven solutions, but they also come with their own risks.
Q2. Where to buy AI crypto coins?
You can buy AI crypto coins on major platforms like Binance, Coinbase, and Gate.io. New and smaller crypto coins are sold on decentralised exchanges like Uniswap, etc.
Q3. What is the difference between a coin and a token?
The difference between coins and tokens is that coins operate on their own blockchain, whereas tokens operate and exist on already-made blockchain networks.
Q4. What is the biggest AI crypto?
The biggest AI crypto is the NEAR Protocol, with a market capitalization of $4,106,787,116
