The Trading Volume of AI Tokens Remains Stagnant Despite Worldcoin Buzz, According to Kaiko
Artificial intelligence (AI) tokens have recently gained attention with the debut of Worldcoin (WLD). However, despite the buzz surrounding Worldcoin’s launch, recent trading data from Kaiko indicates that the trading volume of AI tokens has remained stagnant.
Steady Increase and Sharp Decline
According to Kaiko’s data, the trading volume of AI-related tokens experienced a steady increase during the past month, going from $570 million to $870 million from July to August. However, since the beginning of 2023, when it surpassed $7 billion, the trading volume has significantly decreased and remained stagnant.
Dessislava Ianeva, an analyst from Kaiko, pointed out that enthusiasm for AI tokens started to diminish in July due to a shift in global risk sentiment. The total open interest for the five largest AI tokens, excluding WLD, dropped from $170 million in February to $60 million by August.
Worldcoin’s Entry into the Scene
Worldcoin made its debut on July 24, 2023, capturing the attention of the cryptocurrency community. The project’s co-founder, Sam Altman, who is also the CEO of OpenAI, has contributed to the buzz surrounding Worldcoin.
Worldcoin aims to establish a network consisting exclusively of real individuals, excluding automated bots. The company, based in San Francisco, plans to issue World IDs to individuals, envisioning a future where people can interact with websites without revealing personal information such as their names, phone numbers, or email addresses, thanks to a “global identity verification” system.
Concerns and Criticisms
Despite the excitement generated by Worldcoin, global regulators and privacy advocates have raised significant concerns about the project. One of the main concerns revolves around the lack of transparency in the organization’s data collection procedures. The accumulation of extensive personal data by a single entity raises substantial apprehensions about privacy.
It is worth noting that Worldcoin has faced criticism and pushback from various sources. However, it has also managed to attract over 9,000 users in Argentina in a single day, showcasing the level of interest in the project.
Can Blockchain Improve Trust in AI?
One of the potential benefits of using blockchain technology in AI is its ability to improve trust. By utilizing blockchain, AI systems can develop transparent and immutable records of their decision-making processes, enhancing accountability and auditability.
However, as the magazine article “Moral responsibility: Can blockchain really improve trust in AI?” highlights, there are still many challenges to overcome before blockchain can truly deliver on its promise of improving trust in AI.
It is interesting to see the stagnation in the trading volume of AI tokens, despite the initial excitement surrounding Worldcoin’s launch. This may indicate that investors are becoming more cautious and discerning in their choices, considering factors such as global risk sentiment and privacy concerns.
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