Fetch.ai seizes $40M investment despite decline in AI sector token performance
While the AI market cap sector is down $233 million since February, companies like Fetch.ai continue to attract outside investment.
As the world increasingly relies on artificial intelligence (AI) to power everything from search engines to self-driving cars, it’s no surprise that traders and investors are turning their attention to the intersection of AI and cryptocurrency.
The intersection of AI and cryptocurrency is quickly becoming a hot topic among traders and investors alike, with many betting on the potential of AI-focused tokens as the next growth sector.
Fetch.AI snags $40 million investment
One of the players leading this charge is Fetch.ai (FET), an AI-focused crypto protocol that recently raised $40 million from market maker and investment firm DWF Labs.
Fetch said the investment to deploy machine-to-machine tools allow for greater AI integration, according to a report published in CoinDesk on March 29.
“Fetch.ai’s platform provides a comprehensive solution for building and deploying peer-to-peer applications with automation and AI capabilities,” Andrei Grachev, of Fetch AI, said in a statement.
Other notable AI cryptos
Fetch is among a handful of other AI cryptos like SingularityNET (AGIX), Graph (GRT), Ocean Protocol (OCEAN) and RLC that all advertise an ability to integrate with AI as part of its core founding principles.
The total market capitalization of the crypto AI sector is $3.64 billion, according to CryptoSlate data — down $233 million since February.
In addition to investment in specific AI sector cryptos, there have also recently emerged a plethora of novel technologies that aim to help investors through AI-powered trading bots. One such company, PulseFolio, leverages machine learning algorithms and historical market data to formulate customized trading strategies for users based on their risk tolerance and asset objectives.
Chat GPT’s meteoric growth will pause
“AI stresses me out,” Elon Musk said earlier this month — a call that has been followed up on March 29 with an open-letter signed by Musk and others calling for a six-month “moratorium” on advanced language models.
“Powerful AI systems should be developed only once we are confident that their effects will be positive and their risks will be manageable,” the letter said — arguing that more time should be given to see how OpenAI’s Chat GPT-4 will impact fields like medicine, law, accounting and even investing.
By 2033, Goldman Sachs predicts that AI will add 1.5% to global GDP, and mushroom into a $7 trillion market cap. On the same topic, Goldman Sachs said:
“AI is being considered the next big change in technology after the evolution of the internet, mobile and cloud […] generative AI tools have far-reaching impacts across industries, from enterprise software to healthcare, financial services and more.”