While some crypto-AI tokens continue to deliver profitable trades, the long-term sustainability of the ecosystem will require more than just decentralizing AI components.
While technologists continue to explore artificial intelligence (AI) use cases in all business verticals, a Coinbase research report suggests that AI-related tokens may be over-hyped right now, at least in the short and medium term.
The rising popularity of generative AI spurred niche crypto sub-ecosystems over the last couple of years. However, Coinbase research analyst David Han believes that the rapid changes in AI "make us cautious" of the long-term sustainability of most AI tokens.
One of the primary challenges with crypto-AI projects lies within the core of both technologies. While crypto projects often aim for decentralization, the current AI offering relies heavily on centralized components and data sources, argues Han.