AI computing protocol attracts $158M within a week after ‘fair launch’

The NFT Unicorn ffb47b85-e4e4-460e-9b31-552f3e63a00e AI computing protocol attracts $158M within a week after 'fair launch' Crypto News

An Arweave-based computing protocol for artificial intelligence (AI) applications, AO, has attracted over $158 million worth of deposits within a week after its ‘fair launch.’

AO is a new protocol built on Arweave’s permanent data storage layer, that enables parallel application running through a decentralized computational model. It will also enable AI applications to run on-chain, enabling large language models (LLMs) to run within smart contracts.

The success and significant inflows for the AO (AO) token are attributed to the industry’s hunger for new technological solutions, according to Sam Williams, the founder of Arweave.

Williams told Cointelegraph:

“The launch of AO has generated a huge amount of building, usage, and excitement. This has been reflected in the rapid growth of the network’s TVL. The industry is ready for something new — both in terms of tech and the economics of blockchain networks — and that is exactly what AO provides.”

Related: Bitcoin ETFs legitimized the crypto industry for investors — Storm Partners

Fair launch tokens reflect ethos of crypto

Out of the $158 million worth of total deposits, the AO token attracted the lion’s share, or $48 million worth of stETH on June 18, according to Dune data.

AO net stETH deposited. Source: Dune

Beyond introducing an innovative parallel computing strategy, the token’s ‘fair launch’ model was another part of its success.

Minting of the AO token was launched without any venture capitalist (VC), pre-sale, or pre-mining allocations, with 100% of the token supply allocated to the community.

The NFT Unicorn b7575e9e-ee70-40b0-9a0e-afbde3a1b551 AI computing protocol attracts $158M within a week after 'fair launch' Crypto News
AO token, economical launch model. Source: AO

The AO token’s fair launch is an effort to return to crypto’s original ethos of fair and equal access, according to Arweave’s Williams. He wrote:

“AO’s technology solves many of the core issues that have held crypto back from mass adoption, so we built economics to match that, too. Fair, equal access for all. No preferential treatment for anyone.”

AI vs. Crypto: Will It Make a Real Difference?. Source: Cointelegraph

Related: Ethereum price to $10K is the most ‘asymmetric bet’ in crypto — Analyst

AI-related cryptocurrencies stage recovery

AI-related cryptocurrencies have been in the spotlight for most of 2024, as investors remain focused on finding the next significant AI applications. Some of the top AI-based cryptocurrencies started their recovery on June 20, after double-digit weekly drops.

The Near Protocol (NEAR) token recovered over 8.4% intraday, after last week’s nearly 13% price decrease.

The (FET) token also rose over 23% in the past 24 hours, while the SingularityNet (AGIX) token rallied over 23%, in the 24-hour leading up to 12:25 p.m. in UTC, according to CoinMarketCap data.

The NFT Unicorn be287e42-5db1-4bfb-a12a-05038f983671 AI computing protocol attracts $158M within a week after 'fair launch' Crypto News
Top 10 AI & Big Data tokens. Source: CoinMarketCap

The total trading volume of AI-based cryptos rose over 14% to $2.68 billion while their cumulative market capitalization rose over 7% to $30.9 billion.

Magazine: Ethereum’s recent pullback could be a gift: Dynamo DeFi, X Hall of Flame

Source: Cointelegraph