Navigating the Murky Waters of Crypto and AI Integration

Nov. 28, 2023.
2 min. read. Interactions

⚠️🤖 Beware of the new crypto-AI hustle! Crypto grifters are eyeing AI's rise 📈, mixing misleading tokens and scams. Stay alert, and don't get caught in the hype! 💸🚫 #CryptoAIScams

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Lewis Farrell

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Highly curious 🤔 about things that increase my awareness 🧠, expand my perception 👀, and make me open 🔄 to being a better person 🌟.

The Emergence of Crypto Grifters in AI As the crypto industry attempts to recover from a series of scams and scandals, a new threat looms on the horizon. The latest hustle involves merging the buzz around artificial intelligence (AI) with the allure of cryptocurrencies. This blend of crypto and AI, largely unrelated fields, has become a breeding ground for new scams. Here’s your guide to understanding these dubious ventures and why they don’t add up.

Unpacking the “AI plus Crypto” Hype
The current trend in the crypto world is the creation of questionable crypto-tokens, hoping to ride the wave of enthusiasm for AI. These efforts can be categorized into three main types:

  1. Cryptocurrency Tokens for AI Services: This approach involves using crypto tokens to access AI services, such as those offered by language models like ChatGPT. However, it’s crucial to understand that the term “token” in AI has nothing to do with blockchain or cryptocurrencies. Any claims of a special synergy between crypto-tokens and AI-tokens should be viewed with skepticism.
  2. Data Marketplaces and Personal Data Monetization: Another tactic is the resurgence of the “data is the new oil” narrative. Here, tokens supposedly reward individuals for contributing personal data to AI training. This concept, which failed to take off in 2017, remains implausible. The notion of monetizing personal data through blockchain is misguided and overlooks how web services typically operate.
  3. Tokens with AI Branding: Expect to see tokens with “AI” or “GPT” in their names, exploiting the general public’s limited understanding of these technologies. Such tokens rarely have any substantive connection to genuine AI development.

Cautionary Tales: Helium and Worldcoin
Examples of these dubious ventures include Helium, initially a wireless network for Internet of Things devices, which pivoted to a crypto-based model with questionable economics. Worldcoin, funded by Sam Bankman-Fried and led by Sam Altman, raised ethical concerns by offering cryptocurrency in exchange for iris scans, under the guise of establishing a universal basic income experiment.

Understanding the True Value of Cryptocurrencies and AI
It’s essential to recognize that the primary value of cryptocurrencies lies in providing a censorship-resistant store of value, essentially functioning as advanced accounting software. AI, in contrast, aims to replicate and amplify human cognition. These technologies operate on entirely different creative spectrums, and attempts to forcibly merge them are often misguided and driven by ulterior motives. As the allure of integrating AI with crypto continues to attract attention, it’s crucial to approach these ventures with a healthy dose of skepticism and a critical eye.

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SOURCE: Beware of crypto grifters looking to crash the AI party | Fortune Crypto

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