“Shuffling AI Concept Coins for Wealth? Coinbase Analyst Approaches with Caution: Decentralization and AI May Not Necessarily Align”

"Shuffling AI Concept Coins for Wealth? Coinbase Analyst Approaches with Caution: Decentralization and AI May Not Necessarily Align"

"Shuffling AI Concept Coins for Wealth? Coinbase Analyst Approaches with Caution: Decentralization and AI May Not Necessarily Align"

Since the launch of ChatGPT, artificial intelligence (AI) related investment categories have been sought after by the market, stimulating speculation and development of concept tokens in the cryptocurrency industry. However, in a recent report by David Han, a research analyst at Coinbase, it is pointed out that these concept tokens have been excessively hyped in the short term, and investors should exercise caution regarding the long-term sustainability of most AI concept tokens due to the rapid changes in AI technology.

AI projects in the cryptocurrency field are inevitably centered around two core technologies: “cryptocurrency” and “AI.” However, cryptocurrency projects often aim for decentralization, while current AI products heavily rely on centralized components and data sources. From this perspective, it is difficult for these two technologies to seamlessly integrate. The Coinbase analyst stated that although the combination of these two technologies holds potential in improving blockchain data for human-readable transactions and data analysis, as well as aiding in decentralizing AI infrastructure, overall uncertainty remains significant.

Despite the considerable uncertainty and risks in the future prospects, investors do not seem to share the same sentiment. Many AI concept tokens have recently outperformed Bitcoin and even related concept stocks such as Nvidia and Microsoft.

In response to this, the Coinbase analyst attributes this phenomenon to widespread market sentiment and hype surrounding AI-related news. They also point out that the value potential of many AI concept tokens may be overblown and may lack sustainable demand drivers in the medium to short term. The Coinbase analyst advises investors to exercise caution when participating in this field of investment.

(This article is authorized for reprint from GT Radar.)

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