Is the Future of Using AI to Guide Cryptocurrency Investment Still Far Away?

10/19/2023·1years ago

With ChatGPT entering the Web3 field, the combination of the cryptocurrency investment field and artificial intelligence (AI) technology is becoming more frequent, and various intelligent investment assistants and smart trading tools are emerging. The capital market also favors this field greatly. According to veDAO's investment and financing data, in the past few months, in financing projects of over tens of millions of dollars, AI projects and large language model (LLM) projects accounted for over 40%. Today, let's follow the footsteps of VC Smart Money and share a few practical and promising tool projects, and introduce how to use AI technology to assist our cryptocurrency investment.

How Does AI Achieve Intelligent Investment?

Simply put, the software of artificial intelligence technology can automatically execute cryptocurrency trading through market analysis tools, technical indicators, and data analysis, and execute buying and selling transactions of cryptocurrencies in favorable market conditions. To apply artificial intelligence technology, a large amount of real data and excellent algorithm models are essential. In the world of Web3, open and transparent massive data is a natural advantage, and the recent hot topic of large language models and intent trading concepts further promotes the development of artificial intelligence.

Currently, AI large language models have the ability to generate, interpret and analyze, logical reasoning, instruction and integration, and tool usage, and are capable of creative and innovative work in the investment field, and help to conduct trading investments accurately, quickly, and with high quality.

The concept of intent trading is an innovative concept that focuses on the intent and aims to achieve "one-step" operations through protocol and infrastructure optimization. More precisely, it hides the complex operation process, allowing users to achieve their goals without any hassle. AI will leverage its advantages in ultra-efficient retrieval and execution rates to play a role in natural language input, breaking down targets, calculating the optimal path, and executing operations. Efficient and accurate insights clearly understand the user's intent, thereby achieving "one-step" operations.

Image from ACCapital

Current Market Situation and Challenges

A good intelligent investment assistant can greatly benefit every investor. There are numerous AI applications in the current market, but the quality of projects varies. In fact, major DEX and CEX are deploying artificial intelligence tools, but there has not yet been a situation where one or two tools dominate a large number of users. The following reasons are worth exploring and analyzing:

Sufficient data volume is needed, which may not be enough to support AI learning and cannot guarantee the quality of LLM, or it may be that the data resources of the project team cannot guarantee future iterative optimization, making it difficult for the project to take shape.
The importance of model factor dimensions, due to the difference between Web3 and traditional finance, factors such as unique Twitter ecosystems, Telegram group communities, on-chain storage data, and the inability to obtain off-chain data 100% will become a series of complex factor options for the model to consider. It is still necessary to develop strategies based on a large volume of data, which greatly tests the professionalism and technical capabilities of the project team in the investment and algorithm fields.
Leave professional matters to professionals. Although many leading DEX and CEX are deploying artificial intelligence investment tools, a tool pursues more simplicity and accuracy. Many users are very annoyed by "finding the module/tool they want to use in a huge page branch" and need to challenge the page several times before using the tool. Professional software such as Debank, DuneAnalytics, and veDAO are simple, professional, and accurate, and achieve sufficient depth in a field, making them excellent tools with higher user dependence.
Simplify complex things, make the operation process clear, the interface simple and easy to understand, and the operation easy to use. Especially for investment management tools, how to buy and sell, how to customize personalized settings, how to use automatic trading robots, and how to manage changing positions, the purpose of AI is to bring users a simple, efficient, and accurate experience, and excellent product tools need to make users truly feel the changes brought by AI.
Innovative and advanced ideas also need to wait for the realization and popularization of technology, from ChatGPT's global explosion, to the rise of large language models, and then to the attention of AI+intent concepts, the time span is very short. We also need to give technology time to land, mature, and popularize applications, continuously iterate and optimize to present the best experience to users.

Highlights of Projects

1. VeDAO

veDAO deeply integrates the platform's unique trend tracking and intelligent trading modules, dedicated to creating a Web3AI exchange more suitable for Web2/Web3 users to buy and invest. veDAO's AI intelligent investment assistant has inherent platform advantages.

It has a massive database of terabytes, covering nearly 70 mainnet ecosystems and 40 Web3 tracks. This includes an 8000+ Web3 project library, 22000+ Twitter KOL, 3700+ investment institutions, 20000+ Smart Money addresses, and 6000+ related information. It not only has a complete project evaluation system and a veDAO expert committee composed of well-known Web3 institutions, but also two professional tracking modules - Twitter sentiment tracking and Smart Money signal tracking.

The AI intelligent trading section that veDAO is dedicated to creating can amplify the platform's original data resource advantages, and provide more intelligent and efficient investment services for users. It has the following highlights:

veDAO-AI trading provides users with intelligent assistance throughout the entire investment process, from before, during, and after the investment.

Before the user buys, veDAO-AI trading can make data-driven decisions, comprehensively analyze various data sources (such as market trends, etc.), and provide more accurate and comprehensive investment advice.
When the user buys, veDAO-AI trading's personalized recommendation function can manage positions and provide investment advice based on the user's principal and risk tolerance.
While the user holds a position, veDAO-AI trading's automated real-time response mechanism can monitor market changes and the user's position, and automatically execute preset trading conditions, greatly improving trading efficiency.
After the user sells, veDAO-AI trading also analyzes the current profit and loss situation and the timing of buying and selling, helps the user make investment summaries, and learns and optimizes based on historical trading data, continuously improving the accuracy of trading strategies.
In addition, veDAO-AI trading tools are naturally user-friendly. Through natural language processing (NLP) technology, users can complete complex on-chain transactions using simple natural language.

The AI trading process is designed to be comprehensive and user-friendly, covering every aspect of the process with humanized design, providing professional analysis for user investments, continuously iterating and optimizing investment advice strategies, providing nanny-level intelligent position management, and personalized custom settings. In the future, mature intent trading technology will also be introduced, aiming to use secure and scientific AI technology.

veDAO aims to use trend tracking to find good projects/seize good opportunities and maximize user investment interests through AI intelligent trading, creating a web3AI exchange that is professional, easy to understand, and more suitable for Web2/Web3 users to buy and invest. Related links:

https://app.vedao.com/ai-trade

2. ParaX

ParaX's intent-driven AI assistant ParaX AI is a cross-domain intent-driven large language model (CDI-LLM). Trained on a large amount of DeFi-related data models, it can understand users' trading intentions in different scenarios. These data models include contract codes, mainstream protocol documents, etc., aiming to convert users' intentions into desired goals and constraints through natural language understanding, and then generate corresponding trading sequences. These trades are then executed on ParaX's multi-chain contract accounts, realizing trading patterns across different application scenarios. Its core features include:

Multi-chain account abstraction (MAA): MAA unifies the attributes of multiple accounts on multiple chains, similar to centralized exchanges (CEX). This simplified approach brings several benefits: Unified identity: single identity verification and authorization across a wide range of DeFi, streamlining processes and giving users more control over their data. Simplified management: ParaX deploys smart contracts to collect on-chain transaction and asset data from various target chains.
Meta User Interface (MUI): This is a one-stop dashboard where users can interact with all their favorite applications without getting bogged down in the details of chains or applications. The platform provides a "simplified" version that strips away any intermediate processes and only provides essential content. Users who prefer a more customized experience can choose dapps in the "professional" interface.
Cross-domain intent-based LLM: This can convert intent into executable requests, encapsulate and hide blockchain technology details, thereby lowering the barrier for users to enter Web3. The goal is to understand users' intent through natural language, convert it into desired goals and constraints, and then generate corresponding series of trades. These trades are then executed on multi-chain contract accounts, realizing trading patterns across various application scenarios.
ParaVM: ParaX will create an environment that encourages developers to create "small applications" that add unique value to the ParaX ecosystem.

3. BubbleAI

BubbleAI is a signal and AI-driven trading aggregator. It adopts cutting-edge Web3 technology to build a powerful off-chain data intelligence system. Users can easily access market trends, trading data, and trend analysis. More importantly, BubbleAI introduces its self-developed AI large model analysis engine, making complex data simple and easy to understand. This allows users to quickly and easily access and utilize data that was once the most difficult and complex, providing solid support for their trading decisions.

It is worth mentioning that BubbleAI recently successfully completed a pre-seed financing of several million dollars, led by Luxtech Capital and a leading WEB3 Hong Kong-listed company. This financing will further drive the product development of BubbleAI, deep data mining, and the development of the AI large model analysis engine, providing users worldwide with more powerful tools and support. Related links:

https://app.vedao.com/projects/1405de11634f5f6c9ddf6ffa6e5abc2a1bdb1aeb2bd5f1d246efbe8358e97809

4. Assister

Assisterr is a natural language-driven Web3 analysis tool. It aims to provide individuals with the knowledge needed to achieve financial freedom.

The Assisterr team's extensive data research and analysis found that 73% to 81% of retail investors fail in cryptocurrency investment due to a lack of information and professional knowledge. In contrast, artificial intelligence has completely changed the Wall Street stock market, with algorithmic trading accounts accounting for 60% to 73% of the US market. AI tools provide many benefits to hedge funds, investment companies, and stock investors, including shortening research time, increasing accuracy, predicting patterns, and reducing management fees. Professional traders use these tools to gather intelligence and consult clients or make investments on their behalf.

The Assisterr team saw the opportunity of ChatGPT in Web3, fine-tuned ChatGPT and dynamic dashboards, combined them with the latest on-chain and off-chain data, and became a Web3 data warehouse. Assisterr tools provide several benefits in Web3 investment analysis:

Personalized recommendations: ChatGPT maintains context and can provide personalized recommendations based on the investor's level, risk tolerance, and interests.
Virtual assistance: ChatGPT can act as a virtual assistant and explain unknown indicators, relevance, and abnormal deviations.
Insight tracking: ChatGPT can alert users to risks and opportunities it believes are related to the user's investment portfolio and interests.
Social elements: Community members can share their tips and receive rewards from other community members.

Assisterr Web3 analysis tools are currently in beta testing and development, and its core founder Nick Havryliak frequently updates the project's development and testing results on Twitter. It is worth noting that Assisterr caused quite a stir at the Web3 Investor Day in Chicago on July 20, and we also look forward to the official launch of this AI analysis tool. Related links:

https://app.vedao.com/projects/0a5ebb04f99d0460f3a0336cc0d63d671fb53781862d70de33fc3b88d6ba9a70

veDAO is a one-stop platform driven by AI for Web3 trend tracking and intelligent trading, combining market trends and trading depth presented by big data analysis, dedicated to creating a Web3AI exchange more suitable for Web2 and Web3 users to buy and invest.

veDAO has an industry-leading AI large language model composed of on-chain analysis and sentiment indicators, providing proactive data support for users, combined with intelligent, fast, secure, and real-time monitoring AI trading functions. As of now, the platform has over 37,000 heavily engaged users, is associated with 22,000+ Web3 vertical industry Twitter KOL, and has a veDAO expert committee composed of 180+ professional institutions. The platform project library has over 8300+ items, and there are 220+ scouts working with veDAO to continuously increase Web3 projects.

veDAO is committed to continuous upgrades at a bi-weekly update speed, determined to build a bridge from Web2 to Web3, and become the preferred platform for Web2 and Web3 users to check projects, find hotspots, view trends, first-level investment, and second-level trading.

Website: http://www.vedao.com/

Twitter: https://twitter.com/vedao_official

Facebook: bit.ly/3jmSJwN

Telegram: t.me/veDAO_zh

Discord: https://discord.gg/NEmEyrWfjV

🔴Investment carries risks, projects are for reference only, please bear the risks on your own🔴