The recent boom in artificial intelligence (AI) has the potential to reshape the cryptocurrency industry.
That's based on a June 1st. report by cryptocurrency exchange coin basewhich points out that, despite great media attention, investments in AI have decreased.
“That being said, the restraint in VC investment is not unique to the AI sector, and overall there is still a record amount of dry powder that finally needs to find a home,” he wrote. david duongCoinbase's head of institutional research.
"We believe that the intersection of AI and cryptography represents a significant opportunity for entrepreneurs looking to build on Web3."
The report says that crypto projects involving AI models are still relatively rare, accounting for just 0.07% of the total crypto market capitalization.
Duong mentioned several ways that cryptocurrency and AI can work together. For example, he argued that "cryptocurrency platforms can make AI systems more accessible," allowing people to contribute to their use and development at a time when a handful of major players dominate the generative AI space. .
The report also argues that the world of cryptocurrencies can help combat the danger of AI being used to promote misinformationwith blockchain technology that is used to authenticate the origin of media such as videos, music and images.
“Taking this a step further, blockchains could be used to create an auditable trail of decision-making processes used by the AI algorithms themselves, which otherwise tend to be opaque and cannot be easily examined. Duong wrote.
Among the venture capital operations that are investing in AI is the British firm Moonfire Enterpriseswhich, in fact, uses technology to guide financing decisions, founder Mattias Ljungman he told PYMNTS in an interview last week.
“It makes us a little more effective in identifying good opportunities,” mike harpaia, a partner in the firm, added. "It's also a fun and interesting way to participate in an emerging technology that is going to be very transformative."
To that end, Moonfire, who recently grossed $115 million To promote early-stage AI-focused startups in Europe, you can filter through 50,000-60,000 funding requests each week, narrowing that number down to about 100 opportunities that match your investment thesis.
With AI and machine learning doing the heavy lifting, Ljungman said Moonfire now has more time to focus on a crucial aspect of the investment process: engaging and building relationships with founders.
“Using these systems allows us to have that time and efficiency to build relationships with founders and meet their needs as they take on what is often a very bold vision of changing an ecosystem and ultimately society. [at large]," he said.
