The United States watchdog warned hopeful crypto investors against placing trust and funds in AI trading bots, as many of them will result in a 100% loss.
Investors on the hunt for their next massive cryptocurrency gain have been warned against relying on artificial intelligence (AI) trading bots to deliver. Despite the surge in popularity, the United States Commodities and Futures Trading Commission (CFTC) reiterates that AI cannot predict the future.
In a recent statement published by the CFTC titled Customer Advisory Cautions the Public to Beware of Artificial Intelligence Scams, the agency advises crypto investors aspiring for significant returns this year to avoid being lured by exaggerated promises from AI. Especially, those promising impressive yields by using bots, trade signal algorithms, crypto-asset arbitrage algorithms, and other AI-assisted technology.
Melanie Devoe, director of CFTC’s office of customer education and outreach emphasizes that investors should be “wary of the hype,” reiterating that AI has become another way for malicious actors to defraud unsuspecting investors.
