Crypto News – Coinbase claimed in a recent analysis that the current cryptocurrency frenzy and artificial intelligence (AI) expectations are overblown.
AI Cryptocurrencies Hype, According to Coinbase Analyst David Han
Research analyst David Han of Coinbase noted the quick changes occurring in the AI space and said that platforms with a cryptocurrency concentration are in a unique position to upend the market. According to Han, the good attitudes in the crypto industry as a whole and the spread of news about AI typically have a beneficial effect on AI tokens. He went on to say that the focus placed on AI tokens these days is exaggerated.
Our contrarian view is that the value potential for many AI tokens may be overstated as a result of broad attention on the AI industry and that many AI tokens may lack sustainable demand side drivers in the short to medium term.
Han
AI Tokens Have Been Rising for a While
According to Han, the existing AI offering mainly depends on centralized components and data sources, despite the fact that crypto initiatives frequently strive for decentralization. Enhancing blockchain data to produce transactions and analysis that are understandable by humans and assisting in the decentralization of the primarily centralized AI infrastructure are the two potentials that the report emphasizes for the cryptocurrency AI ecosystem.
A decentralized AI future, as it is currently envisioned by many in the crypto industry, is not guaranteed — in fact, the future of the AI industry itself is still largely undetermined.
Han
In spite of the bleak outlook, several AI tokens have recently surpassed both Bitcoin and large corporations like Microsoft and Nvidia. According to Coinbase, this is the result of the general market sentiment created by the cryptocurrency industry and reinforced by articles on AI news.
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