As the crypto landscape undergoes continuous transformation, a new breed of scams is emerging, blending the hype of artificial intelligence (AI) with crypto, as warned by Kathleen Breitman, co-founder of the Tezos blockchain, in a recent Fortune commentary. In this evolving trend, opportunistic individuals seek to capitalize on unsuspecting investors by fusing seemingly unrelated fields.
Breitman outlined three distinct flavors of this emerging trend. The first involves using crypto tokens for accessing AI models or services, exploiting the overlap in the usage of the term "tokens" in both AI and crypto contexts. While some AI services accept crypto for payments, the linkage is often superficial, and entrepreneurs may attempt to convince investors otherwise.
The second flavor revisits the notion that "data is the new oil," a phrase from the 2017 boom in initial coin offerings (ICO) that has now become an internet meme. Scammers may peddle tokens claiming to reward individuals for contributing personal data to AI training models through supposed "data marketplaces." Breitman dismissed this concept, stating that personal data is in "no sensible way" a monetizable asset.
In her article, Breitman predicted the emergence of tokens explicitly branded with "AI" or "GPT" (based on the popular chatbot ChatGPT) in their names, capitalizing on the excitement surrounding these technologies. Breitman stressed that the attempts to merge AI and crypto seen so far make no sense in the eyes of genuine AI developers. She cautioned against falling for these "shoehorned" tokens, emphasizing the crypto industry's tendency to generate questionable business models with the hope of luring unsuspecting investors.
As the crypto industry grapples with these evolving challenges at the intersection of AI and crypto, Breitman's warning serves as a reminder for investors to exercise caution, conduct thorough due diligence, and remain vigilant in the face of innovative but potentially deceptive schemes.
