Crypto Scams Adopt New Tactic with Artificial Intelligence
In recent years, the crypto industry has faced a wave of scams and controversies, but it seems that grifters are not done yet. Merging cryptocurrency with the latest buzz in the technology world, artificial intelligence (AI), has given rise to a new breed of scams and schemes. Here, we will dissect these dubious business models and their claims to merge two seemingly unrelated fields.
**Hitching AI to Crypto**
As the crypto world turns to embrace artificial intelligence, a new genre of crypto tokens is emerging, capitalizing on the enthusiasm for AI. In the past, during hype cycles, any idea seemed to require the addition of a decentralized database. Now, the “AI plus crypto” trend is taking shape in three different flavors.
**Misleading Pitches**
The first flavor involves using a cryptocurrency token to access an AI model or service. This pitch leverages the confusion surrounding the use of “tokens” in both AI and crypto jargon. There are also schemes to reward people for contributing personal data to AI training models under the guise of “data marketplaces”.
The second flavor presents tokens with “AI” or “GPT” in the name, luring investors with the association of AI and crypto. While these schemes may appear enticing, they make no sense to genuine AI developers.
**Rebranding and Repackaging**
The cryptocurrency industry often rebrands existing business models with hopes of tricking retail investors into buying tokens. For example, Helium, originally founded as a wireless network company, rebranded to create a crypto-based model and encountered issues related to the shaky economics it offered for hotspot owners.
Worldcoin, a project funded by prominent figures in the crypto space, attempted to scan irises in return for crypto as part of a basic universal income experiment. Such attempts to blend AI and crypto tend to be far-fetched and raise concerns about data privacy and security.
**Separate End Goals**
It is important to remember that cryptocurrencies primarily offer a censorship-resistant store of value, whereas AI aims to replicate human thought. The two technologies exist on opposite ends of creativity spectrum for a reason.
As the crypto industry delves further into the world of AI, investors should remain vigilant and cautious of new scams and grifters looking to capitalize on the latest trends in technology. Awareness and thorough research are essential to avoid falling for these misleading schemes.
I have been a full-time professional writer for over 10 years, and have written for some of the biggest publications in the world. My work revolves around cryptocurrencies and blockchain technology, and I am widely considered to be one of the leading experts in these fields.I have written two books on the subject matter, and my articles have been featured in major news outlets such as The Wall Street Journal, Forbes, and Huffington Post. In addition to writing, I also give talks and seminars on cryptocurrency investing, and am a regular commentator on CNBC, Bloomberg, and other financial news networks.
