🧠 ChatGPT Boosts AI Tokens

Talking points

👀 Quick Market Outlook

Price action has been fairly steady over the past 7 days for the crypto market, and Bitcoin, with some altcoins having explosive moments especially AI focused tokens.

However, after the release of news from the SEC in which the result of their settlement with the crypto exchange Kraken was released, the market started to take a hit.

Overall, it was fairly conservative until after the news release on February 9th. Bitcoin found a weekly low of $21,773, which compared to the weekly high below of $23,678, that is quite a drop.

So why has this news negatively impacted price action?

Well, the settlement reached by the SEC and Kraken was the decision to fine Kraken $30M AND to shut down crypto staking within the U.S.

Yes, you read that correct. The SEC are clamping down on staking within the U.S claiming these transactions act as securities and are not allowed.

So not only will this impact Kraken, who felt the full force of the SEC, but it will impact every major exchange offering crypto staking within the U.S.

This kind of news is big and could have a damaging impact on the entire crypto market heading into the weekend.

Be extremely cautious as the market is expected to be more volatile than usual due to this.

📉 Are FTX wallets preparing to dump millions of dollars worth of assets on the crypto market?

Alameda Research who were a cryptocurrency trading firm, filed for bankruptcy on November 11th 2022 after Alameda's sister cryptocurrency exchange (FTX), experienced a solvency crisis, forcing them also to file for chapter 11 bankruptcy.

Here is where it gets interesting 🕵️‍♂️

The 'bankrupt' Alameda has had active transactions on 7th Feb 2023 involving multiple wallets with a couple million dollars worth of FTX native exchange tokens (FTT) being transferred.

This is an interesting occurrence because before filing for bankruptcy back in November, Alameda Research withdrew over $200 million from a variety of different addresses.

A quick breakdown below 👇

The transaction movement of these wallets are concerning for the crypto community as substantial damage was caused to hundreds of thousands of investors who had assets on the FTX exchange before it collapsed - with many unable to withdraw or access their funds even to this day.

Either way this is not a good sign for the short term future of crypto especially with the possibility of these assets being sold off in large volumes to cover debts related to Alameda Research.

What could this mean for the market?

Although a few million dollars worth isn't super concerning for the market, the main concern here is that Alameda had already discovered over $5 billion worth of liquid assets last month.

Combining this with their estimated $3 billion worth of debts owed, the fact that there is movement within their wallets could speculate that they are preparing for more future movements.

To put things into perspective, if they were to start selling off these liquid assets to reduce debts, the market could be hit hard. - This would however depend on what assets they offload and the volumes they do it in.

There is no timeframe or certainty of this, so keeping an eye open would be recommended.

🧩 Bitcoin Maxis to embrace NFT world?

Could this be the transformation for NFT community?

Typically Bitcoin and Non-Fungible Tokens (NFTs) have not gone hand in hand. The idea of them mixing together caused concerns; security and fees mainly. In fact, Bitcoin and NFTs are so out of touch that there have only been two successful attempts to integrate these together.

The first was the Rare Pepe collection launched by Counterparty in 2014 which you can read more about here. The second integration of this phenomenon was in 2017 but this time with stacks.

So why would Bitcoin Maxis move into the NFT world this time?

Firstly, there is no guarantee that this will happen. However, with the launch of Ordinals (the most recent NFT launch) in January this year, the reaction from the community was better than anticipated but still mixed reviews.

Where would we be without some FUD ❤️‍🩹

It also appears there are some loophole opportunities being taken, this time in the form of 'Bitcoin Punks' which are exact copies of the famous 'Crypto Punks' collection being added to the Bitcoin blockchain.

Dan is a long term Bitcoin user and this tweet would indicate that he is not against the idea of the Ordinal NFT launch on the Bitcoin blockchain. Although what is even more interesting is that he says "Hal Finney would like Bitcoin NFTs." Which is where you may be thinking, who the hell is Hal Finney?

Hal Finney who died in 2014, was one of many people who was believed to be Satoshi Nakamoto (An alias); the creator of Bitcoin.

So Dan's tweet is a big statement as it provides an image of an email sent by Hal himself on his thoughts about crypto trading cards, which when linked to today's crypto world, would be in the form of NFTs.

Our conclusion on the Ordinals NFTs? 🤔

The fact there are increasing Ordinal inscriptions is a huge positive, but there is more to it than that.

The above data shows the significant increase in Ordinal inscriptions from January 10th up until morning of February 9th. The representations are daily mints (Red) and cumulative mints (Blue) which have hit highs of 12k daily mints and 33k cumulative mints! That is a BIG jump from the previous month 👀

There is a unique aspect to these NFTs as they are not your typical NFT. The Ordinals collection are written directly on Satoshis on the Bitcoin blockchain, without the need for a side-chain or extra token.

The above image shows the Ordinal Shrooms NFT collection which was released this month.

Another noteworthy point is that Ordinal inscriptions do not have smart contracts integrated into their NFTs as the Bitcoin blockchain is not capable. Now while this may cause concern for value, it could in fact be the complete opposite.

The incapability may increase the value of these NFTs for that very reason. And yes, I know that may sound confusing, but considering Bitcoins limitations and perceived 'store of value' as a result, we could see the same with these NFTs.

To conclude, the launch of Ordinals could spark increased interest and debate around NFTs and the Bitcoin community and overtime could drive significant traction for the NFT world. After all, the crypto space is ever-changing and embracing new additions and this could be another area of expansion, which is a positive indeed.

📈 AI focused crypto tokens are exhibiting massive growth due to trend 

I'm sure you have heard of ChatGPT, and if you haven't, you should go and check it out as it is taking the world by storm.

This leads us into the next wave trend within the crypto world, Artificial Intelligence (AI).

2023 has started off fairly positive for the crypto world, with Bitcoin moving from $16,500 at the start of the year, up to currently around $22,000 - $23,000 and in term helping move many altcoins up with it.

Although recently one trend that is seeing significant growth are AI tokens. Platforms like Alethea's Artificial Liquid Intelligence (ALI), fetch.ai (FET), and SingularityNET (AGIX) have experienced impressive gains, with some tokens soaring as high as 220%.

Fetch.ai (FET) in particular since the start of the year has moved from $0.09 to a high of $0.59... That is some incredible movement and nearly a 7x within 2 months! Just a glimpse of what AI tokens are capable of in the current climate.

Why are AI crypto tokens trending?

These tokens, which are built on blockchain technology and use artificial intelligence in various ways, are seeing massive growth and are gaining a lot of attention from investor

What's all the fuss about? 

One reason for this growth is the increasing use of AI in various industries, from finance to healthcare to retail. This has led to a growing demand for AI-based solutions, and AI crypto tokens offer a new way for investors to get in on this trend.

In addition to their practical applications, many AI crypto tokens also offer unique investment opportunities. For example, some tokens use AI to automatically manage a portfolio of other cryptocurrencies, allowing for hands-off, algorithmic trading. Others use AI to offer predictive analysis and insights into market trends, giving investors a new way to stay ahead of the curve.

Overall, the growth of AI crypto tokens is a clear indication of the growing demand for AI-based solutions and the potential for investment in this space.