Crypto feeds on AI hype as Tech offers new uses for blockchain
New lawsuits filed by the US Securities and Exchange Commission against Coinbase Global Inc. and Binance Holdings Ltd. have raised serious questions about the future of crypto.
As digital assets face mounting regulatory pressure and other market headwinds, they have also been dethroned as the latest technology fad. When OpenAI launched its ChatGPT bot in November, it paved the way for practical uses of artificial intelligence. Since then AI has captured the attention of founders and investors — the same folks that fueled the crypto boom.
AI may have stolen the limelight, but some crypto enthusiasts say it can provide new opportunities to the blockchain industry.
“You may actually see a situation where AI is sort of a catalyst to rush back to blockchain,” said Adam Struck, founder and managing partner of investment fund Struck Crypto, which has been diving further into AI since the ChatGPT bot release.
Blockchain technology can bring greater transparency and decentralization to AI, which can be extremely opaque in terms of what data is being used to train models, according to Alex Felix, managing partner and chief investment officer at crypto VC firm CoinFund.
Recently, CoinFund backed Tools for Humanity. The crypto startup cofounded by OpenAI's Sam Altman, which raised $115 million, shows a real use case for crypto in AI, said Felix.
Tools for Humanity, which developed a digital currency called Worldcoin, created a small orb that scans people's eyeballs in order to generate a unique ID for that individual based on blockchain, giving them a digital “proof of personhood,” which when combined with Worldcoin can also be used to facilitate secure payments.
“For us, it started with where's the world going with AI? And the way to
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