The total market value of AI-related cryptocurrencies has surpassed 17 billion USD, reviewing 12 newly emerged AI crypto projects

Author: Grapefruit, ChainCatcher

Editor: Marco, ChainCatcher

On February 16, OpenAI released the text-to-video generative AI model Sora, which can generate coherent videos up to 60 seconds long based on textual information. Its generation capabilities and the maturity of video presentation not only shocked global users but also reignited external imagination about artificial intelligence.

With the momentum of Sora, AI-related crypto assets have entered a significant upward trend. Among them, Worldcoin, an iris authentication crypto project created by OpenAI founder Sam Altman, saw its token WLD price surge from $3 on February 16 to a high of $7.9 on February 19, more than doubling in price within three days.

On February 22, the WLD token price broke $8, and as of the time of writing, it was quoted at $8.29, with a 24-hour increase of over 30%, and its market capitalization exceeded $1.047 billion. The rise in WLD token price further catalyzed the narrative heat of the AI crypto sector.

On February 15, a report from Stocklytics indicated that the total market capitalization of AI-related cryptocurrencies had surpassed $12 billion. The report monitored nine AI cryptocurrencies, including Bittensor (TAO), Render (RNDR), Akash Network (AKT), Fetch.ai (FET), CorgiAI (CORGIAI), SingularityNET (AGIX), Echelon Prime (PRIME), Ocean Protocol (OCEAN), and OriginTrail (TRAC).

According to the latest data from Coingecko on February 22, the total market capitalization of AI-related crypto assets has reached $17 billion.

In addition to the well-known AI crypto assets like WLD, FET, RNDR, and AGIX, there are also some lesser-known new projects in this sector, which have shown excellent performance. For example, the AI data platform Arkham token ARKM, the AI agent service project Delysium token AGI, the AI model incentive platform Bittensor token TAO, and the AI data tokenization platform LayerAI token LAI, all of which have seen price increases of over 100% in the past week.

So, what new AI crypto projects are currently in the crypto market? What opportunities are there for user participation?

AI Infrastructure

1. AI Model Open Incentive Platform Bittensor (TAO)

Bittensor project token TAO is one of the earliest projects to launch in this round of AI crypto market. The TAO token price surged from around $200 on January 15 to $700 on February 16, an increase of over three times.

As of February 22, the TAO was quoted at $623, with a circulating market capitalization of $3.9 billion, ranking 25th in the entire crypto market.

In November last year, well-known crypto VC firms Pantera and Collab Currency publicly stated that they had become holders of TAO tokens and would provide more support for the project's ecological development.

Bittensor uses a blockchain network and token incentive mechanism to schedule and filter different algorithm models, thereby forming a free competition and knowledge-sharing algorithm (model) market in the AI field. The platform aims to enable different AI algorithms and models for image processing, text processing, or audio processing to collaborate, learn, and combine, thus forming more powerful models to better serve developers and users.

In simple terms, Bittensor does not produce algorithm models but acts as a mover for high-quality algorithm models. Through the blockchain's token incentive mechanism, it can select a better algorithm model for users from existing algorithms.

In terms of product design, Bittensor adopts a Polkadot parachain (subnet) architecture, where each algorithm AI model can act as a chain (subnet), and there is a separate chain specifically for processing AI model collaboration using the platform token TAO for incentives.

The specific operational mechanism involves four roles in the Bittensor ecosystem: miners, validators, model users, and others.

Miners are providers of various AI algorithms and models. They host AI models and provide them to the Bittensor network, with different types of models forming different subnets, such as models specializing in images, sounds, or texts.

Validators are evaluators of AI model quality within the Bittensor network. They assess the quality and effectiveness of AI models and rank them based on performance for specific tasks, helping consumers find the best solutions. Currently, most validators in the Bittensor network are affiliated institutions and need to stake a certain amount of TAO tokens.

Users are the final users of the AI models provided by Bittensor, which can be individuals or developers seeking to apply AI models. Using AI models requires payment in a certain amount of TAO tokens.

Therefore, for Bittensor, the project itself neither performs model data calculations nor provides data for machine learning on-chain but mobilizes all off-chain AI models for collaboration, coordinating and operating through the token incentive mechanism to select a better algorithm model for users. The mechanism is similar to oracle projects that encourage competition through incentive mechanisms to select better data sources.

2. AI Agent Service Platform Olas Network

Olas Network (formerly Autonolas) is a unified network for automated AI agent off-chain services. Its business is to design AI agents for the crypto industry, providing users with a composable stack for building these autonomous services to handle tasks in different scenarios.

The so-called AI Agent acts intelligently, perceiving the environment and taking autonomous actions to achieve goals, similar to human agents. It can receive input data (such as sensor information, text, images, etc.), analyze and process this data, understand the environment and task requirements, and automatically make corresponding decisions and actions.

For Autonolas, its mission is to provide developers with a foundational infrastructure platform for building autonomous services in the crypto industry, along with a series of toolkits and framework products to simplify developers' work and processes.

From the product collection on the Autonolas official website, various autonomous services created based on this platform can be used for tasks such as portfolio management, data analysis, market prediction, predicting APY returns of certain protocols, formulating trading/yield strategies, acting as oracles to provide more accurate off-chain data, assisting DAOs in governance, automatically managing smart contracts, and establishing DeFi liquidity pools, among others.

OLAS is the native token of the Autonolas platform launched last July. As of February 22, it has seen a 37% increase in the past 14 days, currently quoted at $5.27, with a market capitalization of $256 million.

3. AI Data Annotation and Training Platform AIT Protocol

AIT Protocol is an AI data infrastructure primarily used for data annotation and AI model training, allowing crypto users to contribute to AI model development and training through participation in "Train-To-Earn" tasks while earning rewards.

In the past 14 days, the native token AIT of AIT Protocol has increased by over 300%. As of February 22, it was quoted at $0.65, with a market capitalization of $54.92 million.

In December last year, AIT Protocol announced the completion of a new round of financing, with specific amounts not disclosed. MorningStar Ventures, Megala Ventures, Alpha Protocol Ventures, and a group of angel investors participated.

4. AI Data Tokenization Platform LayerAI Token

LayerAI (formerly CryptoGPT) is a Layer 2 network built using zkRollup technology, dedicated to the monetization of AI data. It is also an "AI to Earn" project that helps users turn every data task in daily life into a source of income.

In the LayerAI ecosystem, there are LayerVPN data nodes or dedicated VPN networks. After users download and configure them, they can earn reward tokens by browsing the layervpn.com website; the AI tokenization financial center KyotoX supports trading or lending of any tokenized AI data; and the native NFT marketplace Layer Marketplace allows users to trade Data Capsule NFTs (monetized user behavior data).

LAI is the native token of LayerAI and also serves as the payment method for network gas fees, with a total issuance of 3 billion tokens. As of February 22, it was quoted at $0.03, with a 202% increase in the past 7 days, and a current circulating market capitalization of $10.7 million.

In April last year, LayerAI announced a $10 million financing at a valuation of $250 million, with the leading investor being market maker DWF Labs.

AI Crypto Application Products

• AI Crypto Search Platform

1. Crypto Encyclopedia IQ

IQ, also known as IQ.wiki (formerly Everipedia), is the encyclopedia of the blockchain and crypto world, containing thousands of wikis on all topics and branches of knowledge in the crypto field, similar to Wikipedia in the blockchain world, dedicated to making blockchain more discoverable and accessible globally, providing users with trustworthy information.

Currently, IQ's products mainly include IQ.wiki (the world's largest cryptocurrency and blockchain encyclopedia), IQ GPT (an AI-driven crypto search engine), IQ.social (an AI-driven cryptocurrency news and social forum center), and IQ Code (an AI tool for coding in blockchain languages like Solidity and Vyper, helping users write efficient and secure code).

In the IQ ecosystem, a dual-token system operates with $HiIQ and $IQ.

HiIQ is a locked token generated by staking IQ tokens, with a mechanism similar to Curve's VeCRV token. The HiIQ balance held by users determines the voting weight for governance proposals in the IQ ecosystem.

Like the VeCRV token, HiIQ is a non-transferable token and cannot be traded in liquid markets. However, HiIQ has utility, such as requiring a certain amount of HiIQ tokens to use IQ GPT for searching crypto knowledge. Currently, IQ GPT offers early access and advanced features to holders of at least 100,000 HiIQ tokens.

IQ tokens are the native tokens within the ecosystem, providing initial power support for Dapp applications, with a maximum supply of 21 billion.

As of February 22, the IQ token was quoted at $0.0075, with a 24-hour increase of about 30%, and a circulating market capitalization of $136 million.

2. Web3 Knowledge Sharing Platform QnA3.AI

QnA3.AI, abbreviated as QnA3, is an AI-driven Web3 knowledge sharing and search platform aimed at providing users with accurate knowledge in the cryptocurrency field. It is also one of the projects in Binance Labs' sixth incubation program and is built on opBNB.

QnA3.AI not only provides information access and acquisition but also offers complex logical analysis functions for users to make trading decisions.

On February 21, QnA3.AI announced its first round of token QNA airdrop activities, where interaction records and points will determine the user's share of the airdrop. Users can earn points by asking questions to the AI or voting on questions.

According to official instructions, users who meet any of the following three conditions will have a chance to qualify for the airdrop:

1. Active participants who have sufficient participation before the first snapshot on January 25, 2024, will be rewarded. Early bird users who joined before December 3, 2023, will receive additional tiered rewards based on their activity level.

2. Outstanding interactive participants, including daily voting, check-ins, asking questions, and mining.

3. Global ambassadors, etc.

Among them, the QNA token has various application scenarios, such as obtaining additional query quota facilities like TG Bot, the "horse racing" feature for predicting and betting on popular questions of the week using QNA tokens, and purchasing advertising space on trend search lists.

3. Web3 Search Engine Kaito

Kaito is an AI-driven Web3 search engine dedicated to solving the fragmentation of information in the crypto field. It aims to change the access to cryptocurrency research and investment information through AI technology, aggregating and indexing thousands of high-quality web3 resource repositories that traditional Google cannot reach, including Twitter, Discord, governance forums, research, news, podcasts, Twitter Spaces, meeting records, etc., and converting minimal byte TB unstructured data information into searchable and readable insights to help users make more informed decisions.

Kaito's flagship product is MetaSearch, designed to search for any topic in the crypto world or project trends and aggregate information from platforms like Twitter, Discord, governance forums, Mirror, Medium, etc., to gain instant insights.

In addition to aggregating information, MetaSearch also optimizes its search engine using AI through ranking, topic mining, personalization, recommendations, voice-to-text transcription, and AI-generated content, integrating ChatGPT/GPT-3.

Currently, MetaSearch is a paid search product, and users need to pay a fee to use it, with the standard version costing $99 per month, the professional version $333 per month, and the elite version $833 per month.

In June last year, Kaito launched the beta version of the crypto search engine "WHAT," which combines Auto-GPT, advanced large language models (such as GPT-4), and Kaito's proprietary real-time crypto search engine.

According to the crypto data platform RootData, Kaito has completed two rounds of financing exceeding $5 million. The first was a $5.3 million seed round financing completed in February last year at a valuation of $40 million, led by Dragonfly, with participation from Sequoia China and Jane Street. The second was a $5.5 million Series A financing completed in June last year at a valuation of $87.5 million, led by Superscrypt and Spartan.

Currently, Kaito has not issued a token.

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#### AI Creation Platform

1. AI Robot Creation Platform MyShell

MyShell is an AI robot content creation platform based on opBNB, allowing users to easily discover or create various applications or robots based on natural language processing technology, such as voice chatbots, language learning assistants, image generation tools, etc. It is also one of the projects selected in Binance Labs' sixth incubation program.

MyShell provides templates and tools, enabling users without programming backgrounds to create their own AI robots or tools through simple configurations, aiming to be a no-code robot creation platform.

Building a simple bot on the MyShell platform takes only 5 minutes, and users can also customize the bot's avatar, skin, voice, and more.

Currently, MyShell mainly features three types of flagship robot technologies, including voice interaction robots, video animation and virtual humans, and image generation.

Among them, the voice interaction technology supports users in customizing the robot's voice style and also supports voice chat, language learning, and other functions. For example, the Emma robot created by MyShell is designed for English beginners, allowing users to engage in English conversations through messaging and calling, and it can also serve as a virtual girlfriend for companionship.

The video and virtual human technology enables video chat functions. For instance, the Shizuku robot is the first virtual character with Live2D functionality, allowing users to video chat with her and watch her Live2D expression changes.

The image generation category provides text-based image generation capabilities, allowing users to generate images through language descriptions, supporting multiple generation model scheduling. For example, the Avatar Magician robot is an AI assistant that helps users quickly create beautiful avatars.

According to the crypto data platform RootData, MyShell completed a $5.6 million seed round financing at a valuation of $57 million last October, led by INCE Capital, with participation from HashKey Capital, Folius Ventures, SevenX Ventures, OP Crypto, and others.

Currently, MyShell has not issued a token, and users can earn points by participating in seasonal tasks hosted by the platform.

2. NFT Art Generation Platform NFPrompt

NFPrompt is an AI-driven NFT art generation platform that allows users to easily create stunning works through prompts and generate NFTs with a single click to obtain ownership confirmation. It is also one of the projects in Binance Labs' sixth incubation program.

Currently, the NFPrompt platform offers five different AI-powered creation tools for images, videos, pfp, music, etc., enabling anyone to easily create NFTs, which collectors and enthusiasts can buy or sell, converting them into real-world fiat revenue, providing a great example for monetizing AI assets.

As of February 22, the NFPrompt platform has accumulated 4.95 million creators, generating 2.66 million NFT works.

In December last year, NFPrompt (NFP) launched the 41st project of Binance's new token mining Fair Mode, with an initial issuance of 1 billion NFP tokens. It is currently quoted at $0.74, with a price increase of over 40% in the past 14 days and a circulating market capitalization of $179 million.

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#### AI Data Analysis Platform Arkham (ARKM)

Arkham is an AI-driven blockchain intelligence and data analysis and tracking platform that provides detailed information and visualization tools for on-chain activities.

In July last year, Arkham launched the "AI Entity Prediction" and the AI assistant Arkham Oracle for on-chain analysis, allowing users to search, filter, and sort cryptocurrency transactions and trades by value, token, time, and counterparties.

In the same month, Arkham announced the launch of Binance's 32nd Launchpad project and announced in November last year that Binance Labs invested in Arkham's native token ARKM.

The total issuance of ARKM tokens is 1 billion. As of February 22, it was quoted at $1.34, with a 130% increase in the past 14 days and a circulating market capitalization of $240 million.

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#### AI Games

1. AI Virtual Companion Game Sleepless AI

Sleepless AI is an AI blockchain-based virtual companion game that utilizes AIGC and LLM to create rich story-based gameplay. It is also one of the projects selected in Binance Labs' sixth incubation program.

In Sleepless AI, there are two virtual boyfriend games: "HIM" and virtual girlfriend game "HER." Currently, only the virtual boyfriend game "HIM" has been launched, targeting a female audience in a romantic simulation game, with each character being a unique SBT character.

In December last year, Sleepless AI launched the 42nd project of Binance's new token mining and announced the completion of a new round of financing led by Folius Ventures, with specific amounts not disclosed.

AI is the governance token within the Sleepless AI game, which can be used for voting on game content and future directions, upgrading game props, purchasing accessories or outfits for boyfriends, etc.

The total issuance of the AI token is 1 billion. As of February 22, it was quoted at $1.85, with a 58% increase in the past 14 days and a circulating market capitalization of $240 million.

2. AI Agent Network: Delysium

Delysium is dedicated to building a large-scale AI Agents collaboration and settlement network called You Know I Love You ("YKILY") and the first Web3 AI Agent operating system ("Lucy").

From its inception, Delysium has embedded AI into its DNA. In November last year, Delysium released the V2 version of its white paper, using AI to create a user-intent-centered AI Agent Network for Web3, establishing a more efficient high-speed communication and collaboration mechanism among agents, accurately capturing user intent and efficiently completing tasks through automated workflows.

Lucy simplifies the operational complexity of Web3 applications through a modular architecture and canvas-style interaction, lowering the entry barrier for users in the Web3 world. At the same time, Lucy is also an AI-driven Web3 operating system and an AI Agent that can invoke various crypto DApps through conversational forms, including but not limited to complex combinations of asset queries, transfers, staking, swaps, cross-chain operations, etc. For example, users can ask Lucy to help transfer some ETH, BNB, or any tokens they own to another address by simply issuing a command, providing the target address, the name of the token to be sent, and the amount, and Lucy will complete the operation for them.

Currently, the token of the Delysium ecosystem is named AGI. Users can participate in the AI Agents collaboration and settlement network You Know I Love You ("YKILY") and contribute to the construction and development of a series of agents by holding AGI. The maximum supply of AGI is 3 billion. As of February 22, it was quoted at $0.17, with a 228% increase in the past 14 days and a circulating market capitalization of $110 million.