Are AI Crypto Tokens a Scam…or a Sign of Things to Come?

At this point, we all might as well accept that ChatGPT is going to emerge as World Overlord. 

No more presidents. No more dictators. No more politicians. Just a bit of AI programming that looks back across every moment of recorded history, calculates the least destructive course of action, and then communes electronically with all the other robotic systems that will run the world to ensure that ChatGPT’s dictates are followed. 

A bit facetious. 

Maybe… 

If so, it’s facetious only by a hair. 

If you’re not yet familiar with ChatGPT, it’s a new website powered by artificial intelligence. Type in something like “Is artificial intelligence a good investment option?” and ChatGPT thinks for a moment and then delivers a cogent, on-point answer.  

Basically, it’s Google with a brain. 

I am active on Twitter and TikTok, and the amount of people using ChatGPT to create art, to build currency-trading bots, to write computer code, and, well, to do all sorts of other insane things, is mind-boggling. 

Which naturally leads to a question I’ve seen pop up: How do I invest in ChatGPT? 

Good question.  

These are the types of technologies that change the world, just as we saw with Google, Apple, Microsoft…or Ford Motor Co. and General Electric back in the day. 

Clearly, people are rushing to buy into this technology right now…which explains why cryptocurrencies tied to AI projects have exploded recently.  

In the last month alone, a crypto called Artificial Liquid Intelligence, or ALI, is up nearly 520%. Fetch.ai is up 220%. It’s like that pretty much across the board with AI-centric crypto. 

I own some small exposure to AI crypto. It’s all part of a very broad, shotgun approach I take toward crypto overall: I want to own exposure to pretty much every segment because each is going to bring something different to the party as the cryptoconomy takes hold over the remainder of this decade. 

I have exposure to privacy coins, which allow for hidden transactions that blind government eyes to what you’re up to. I own coins tied to the metaverse and avatars (both segments will be huge). I own exposure to multiple blockchains because each is going to have its own set of uses, like the difference between a gas station, a refinery, and oil driller—same industry, different business models. 

My approach is based on a simple rationale: Each segment will have its day in the sun as investor fascination explodes for whatever reason. 

I’ve mentioned this anecdote before, but it serves a useful purpose here. Back in the summer of 2020, I snapped up a cryptocurrency called CEEK VR, which is tied to a music metaverse play. No one cared much about CEEK when I was buying it for between $0.008 and $0.01 per token. My total cost for 20,266 CEEK tokens was $192, or less than a penny each. 

And then one day, in the fall of 2021, people suddenly cared. 

Those tokens I was buying for less than a penny soared to more than a dollar. 

I sold my CEEK in two transactions and pocketed more than $20,000…on an investment of less than $200 I made about 16 months earlier. 

That’s the power of investing in crypto at this early stage. There’s vast wealth to be earned on relatively small investments. 

That said, you don’t rush into a crypto after it has already run up.  

Fetch and ALI have both doubled in a week, and have already begun to slip. 

Instead, I would build a watchlist of crypto at a website like Coingecko.com, and I would pack it over time with the names of crypto you come across that make sense to you in terms of the market that the crypto is looking to address. 

Then, I would check in on your list daily, or at least weekly. And I would commit to spending a very small portion of your investment funds (an amount you can easily afford to lose) on building a portfolio of certain crypto when they’ve retreated back toward their starting point. They almost always will when the immediacy of the hype fades. 

But the hype itself tells you that this is where investors are looking—this is a sector they’re excited about, and these are some of the cryptocurrencies they’re excited about in that sector. 

When the real move comes, meaning when the sector is ready for prime time, that’s when you want to own those cryptos, because the moves they begin to make will be consistently higher. 

AI is not ready for prime time.  

It’s a lot of heat with very little practical application beyond the novelty of ChatGPT. Frankly, there are a lot of ChatGPT knock-offs that are emerging, and many more that will emerge in the future. 

Your best approach to profiting from the trend is waiting for investors to shift their focus to the next big thing. Let them forget about AI…and then when AI cryptos are cheap again, put your money to work.  

That way, as AI begins to take center stage and investors refocus on it again, you’re selling into the hype and pouring oodles of dollars into your pocket.