Given the popularity of artificial intelligence (AI) as an investing thesis, it's perhaps no surprise that crypto investors have been enthusiastically hunting for the best possible AI tokens. While dozens of cryptocurrencies claim to be AI crypto tokens, there has not yet been a "super token" capable of capturing the imagination of crypto investors in the same way that an AI-driven business like Nvidia (NVDA 4.14%) has appealed to equity investors.
That is, perhaps, until now. In mid-July, three top AI crypto tokens -- Fetch.ai (FET 6.53%), SingularityNET (AGIX 5.03%), and Ocean Protocol (OCEAN 0.68%) -- are combining forces to create a new AI super token called ASI (which stands for Artificial Superintelligence). Could this new crypto be a millionaire-maker investment?
Possible synergies for ASI
To answer that question, it's important first to understand what makes a token an "AI crypto token." The answer is simpler than you might expect. It is primarily a digital currency to pay for AI products and services, such as on AI marketplaces. Instead of paying in dollars, you pay in crypto. And it can also be used to obtain access to premium AI tools or services.
Using this framework, it's possible to see why there could be potential advantages to creating a new AI super token. Who wants to use three different cryptocurrencies if you're using AI? It can get very confusing, and it's simply not very efficient for any large-scale AI project.
Each of the three AI crypto tokens brings something a little different to the mix. Fetch.ai, for example, is at the forefront of creating new AI bots (known as "agents") that are capable of taking on increasingly challenging tasks within companies and other large organizations. SingularityNET is at the forefront of artificial general intelligence (AGI) and the potential creation of super-intelligent computers. And Ocean Protocol facilitates data-sharing for blockchain-based AI services and tools.
So the key will be the ability to put all of their various approaches, skills, and resources to work in ways that can create new value. In corporate-speak, this is known as creating synergies. To make this happen, the ASI alliance will focus on three big areas: the deployment of AI agents into corporations; the advancement of large language models (LLMs); and the sharing and utilization of AI data.
Putting it all together, you can think of ASI as a digital currency issued by the alliance to pay for products and services (such as bots, agents, or LLMs) offered by alliance members. You will also be rewarded for your contributions to the ASI alliance with the ASI token. And you will use the ASI token to gain access to premium data sets or LLM training tools.
What particularly stands out to me about the new ASI alliance is how much of an emphasis there appears to be on commercialization and monetization. This is what leads to revenue, and that's what can eventually lead to profitability. This new ASI alliance is not just about creating better AI -- it's about making money while doing it.
And that is what has the potential to make the new ASI token so valuable. Investors will be able to see real-world products and services, as well as revenue and cash flow. This, in turn, should create demand for the AI crypto token. If you want access to some of the best AI in the world, you will eventually need to buy this AI crypto token. Unlike other cryptos, which sometimes seem to lack any utility whatsoever, this ASI token will have very clear utility.
Decentralized vs. centralized AI
There's another little twist worth noting here. In order to make its future vision a reality, the ASI alliance is going to assert that decentralized AI is superior to centralized AI. That would be a huge ideological shift. The current system is highly centralized, with a few big tech giants attempting to control the pace of AI innovation. If you want access to the best AI systems, you need to pay them. And those giants make all the money.
Image source: Getty Images.
In contrast, a decentralized AI system would reward everyone. It would reward people who create new AI agents. It would reward people who contribute new AI training data. It would reward people who provide the source code for better LLMs. And it would reward people who contribute the GPU computing power required to make AI work.
The reward would come via the ASI crypto token. Instead of being paid in cash, you'd be paid in crypto. And, even if you are not a researcher or developer with unique AI skills to contribute, you can still be rewarded. And that's by holding the token and watching it appreciate in price over the long haul.
This is where it's necessary for an investor thinking about buying into the new ASI crypto token to take a leap of faith. Is this just a reworking of the same tired thesis that little companies can do what the big tech giants are doing? Do you believe that hundreds of thousands of passionate AI researchers, developers, and users located around the world are capable of taking on the behemoths of Silicon Valley?
I think it's possible. After all, one of the biggest success stories to date in the AI crypto token world has been Render (RNDR 0.86%), which offers decentralized GPU computing power. And one of the buzzwords among AI crypto token enthusiasts continues to be "DePIN," which stands for decentralized physical infrastructure networks. Decentralization is a powerful concept, and one that could be a game changer for AI.
The path to millionaire status?
So here's what I'm thinking: Get in early on ASI while people are still trying to wrap their heads around what it is and how it could revolutionize AI, and then patiently wait for the price to skyrocket. The potential is definitely there. Fetch.ai, for example, is up nearly 200% this year. SingularityNET is up 167%, and Ocean Protocol is up 70%. That's some high-octane performance, even before the official launch of the ASI alliance.
Of course, you won't become a millionaire overnight. The new token is supposed to trade at the price of Fetch.ai on the date of the merger. Given today's prices, that means ASI should start trading somewhere around $1.50. If the tokens increase in value at a compound annual growth rate (CAGR) of 100% per year (a big "if"), then you could grow that $1,000 into $1 million in 10 years.
A lot really depends on the synergies that could result from this AI super alliance. So if you are thinking about investing in ASI, be sure to do your due diligence and understand that there is tremendous risk in investing in any token with no prior track record. Case in point: The creation of the token was supposed to occur in mid-June, but has been pushed back to mid-July, due to technical difficulties.
The good news is that, with ASI, you are essentially getting three crypto tokens for the price of one. That should mitigate some of the risk. As long as investors are excited about all things AI-related, it's easy to see how the new ASI token could really take off. And that's why I'm convinced that this AI crypto token could be a millionaire-maker investment over the long haul.
