A knowledgeable DeFi analyst has pointed out potential risks for traders related to Grok. This advice aims to provide clear insights to traders about the potential challenges and uncertainties associated with Grok in the decentralized finance space.
The upcoming launch of Grok AI could bring changes to how we use X (formerly Twitter). However, for crypto traders and enthusiasts involved in decentralized finance (DeFi), this launch comes with both advantages and potential risks. It’s important to consider the benefits and challenges, especially given the ongoing issues with the bot on the primary social network for crypto enthusiasts.
Concerns Surrounding X’s Grok AI Launch
The launch of Grok AI by X, without addressing existing bot problems, raises concerns for seasoned crypto analyst @DefiIgnas on X. Grok is poised to process real-time data, including trending information on cryptocurrencies.
1/5 Grok AI will be integrated into X next week, affecting crypto as well.
You'll be able to find trending tokens without endlessly scrolling through X for hours.
My worry? X launched AI without addressing the bot problem: 🧵 pic.twitter.com/LydnAEtYjp
— Ignas | DeFi Research (@DefiIgnas) November 22, 2023
While offering innovative features like identifying the most trending tokens in the last 24 or 60 minutes, it introduces new possibilities for manipulations by X bots.
This innovative design allows bots to create information bubbles, promoting their token tickers on Grok. This could potentially mislead cryptocurrency traders who might integrate trading bots to follow assets gaining traction on X.
Although Grok AI is still behind GPT-4 in certain parameters, its implementation’s effects remain uncertain. With X already playing a crucial role in token discovery, the launch of Grok may exacerbate the echo bubble in the crypto community.
The unfolding impact of Grok’s launch is eagerly anticipated. Elon Musk introduced Grok as a competitor to ChatGPT two weeks ago.
Grok’s Anticipated Impact on AI Cryptocurrencies
With its ability to harness real-time information from the X platform, Grok stands out with a significant advantage over its counterparts in the AI cryptocurrency space.
As the activation of Grok approaches, the AI cryptocurrency segment is experiencing positive momentum. According to CoinGecko’s data, top artificial intelligence coins by market capitalization have witnessed a collective increase of 9.2% in the last 24 hours. Notably, several mid-cap cryptocurrencies have posted impressive overnight gains ranging from 30% to 50%.
However, it’s worth noting that some of the top AI cryptos by market cap are currently in the red. Bittensor (TAO) and Render Network (RNDR) show marginal declines of 0.1-0.2%, while SingularityNET (AGIX) and Fetch.AI (FET) have experienced losses ranging from 4% to 8%. The dynamic landscape suggests that the activation of Grok could introduce new dynamics to the AI cryptocurrency market.
Important:Â Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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