Beware of Crypto Grifters Looking to Crash the AI Party
The crypto industry is always evolving, but sometimes, it appears to take a turn for the worse. After a wave of high-profile scams and scandals, grifters are still trying to take advantage of unsuspecting investors. The latest trend seems to be combining the world of cryptocurrencies with the excitement around artificial intelligence, creating a whole new genre of scams to watch out for.
Tokens for Accessing AI Models
One of the most common tactics employed by these grifters is to use cryptocurrency tokens for accessing AI models or services. These pitches often try to blur the lines between the use of “tokens” in AI and crypto jargon, hoping to confuse potential investors. AI tokens are essentially units for processing within a large language model, while cryptocurrency tokens are entirely different. Yet entrepreneurs continue to try to convince people otherwise.
Data Marketplaces and Rewards
Another deceptive scheme involves tokens that claim to reward individuals for contributing their personal data to AI-training models. Known as “data marketplaces,” these tokens are marketed as a way for people to monetize their personal data. However, experts argue that there is no sensible way to monetize personal data, whether blockchain-based or not.
Tokens with “AI” in the Name
Then there are tokens that prominently feature “AI” or “GPT” in their names. These tokens are often designed to appeal to excitable investors who make decisions based on pattern association. However, these tokens make little sense to genuine AI developers, making them clear targets for potential scams.
Rehashing B-list Business Models
While these ideas may seem far-fetched to genuine AI developers, the cryptocurrency industry has a history of repackaging B-list business models in hopes of attracting investors. One example of this is Helium, a company that shifted its focus to a crypto-based model after its original business began to falter.
The Value of Cryptocurrencies and AI
Fundamentally, it’s important to remember that cryptocurrencies are primarily intended to function as a censorship-resistant store of value, while AI aspires to replicate human thought. It’s crucial to be aware of these distinctions and to understand the risks associated with the latest wave of deceptive schemes targeting unsuspecting investors.
In conclusion, the combination of cryptocurrencies and AI may seem like an exciting prospect, but it’s critical to approach these potential investments with a healthy dose of skepticism. As the industry continues to evolve, it’s essential to remain vigilant and stay informed to avoid falling victim to these new forms of financial deception.
I have been featured in numerous publications, both online and offline, and am a regular speaker at industry events. I am also the founder of Crypto University, an online educational platform that helps people learn about cryptocurrencies and blockchain technology. In addition to my writing and teaching career, I am also an active investor in the cryptocurrency space. I have made investments in some of the leading projects in the space, and my portfolio has outperformed the market by a wide margin