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SingularityNET, Fetch.ai, and Ocean Protocol are in discussions to merge their cryptocurrency tokens. The move aims to develop a decentralized artificial intelligence platform. Sources familiar with the matter say the combined entity could be valued at approximately $7.5 billion at full dilution. The proposed deal hinges on approval from each project's community. If successful, it would create a new token called ASI, standing for "artificial superintelligence". The token would have a total supply of about 2.63 billion and an initial price of $2.82. Ben Goertzel, founder and CEO of SingularityNET, is set to lead the new "Superintelligence Collective". Humayun Sheikh, CEO of Fetch.ai and an early DeepMind investor, would assume the role of chairman. Despite the token merger, the three platforms would maintain their separate identities. The consolidation seeks to establish an open, decentralized AI infrastructure at scale. This approach contrasts with existing systems that often obscure their inner workings from the public. It represents a growing trend among AI-focused platforms to pioneer decentralized AI technology. Market reaction to the news has been positive. SingularityNET's AGIX token rebounded from a recent low, while Fetch.ai's token set a new all-time high of $3.34 on March 27 and Ocean Protocol surged 37% within 24 hours, reaching $1.66. The proposed merger reflects a broader push to democratize access to AI technologies as it challenges the dominance of tech giants like Alphabet and Microsoft. The aim is to ensure that companies prioritize more than just shareholder interests. If approved, the native token of Fetch.ai (FET) will transition to ASI. Also, SingularityNET (AGIX) and Ocean Protocol (OCEAN) tokens will merge into ASI at conversion rates of approximately 0.433 to one. The move underscores the growing momentum in the decentralized AI sector.

Artificial intelligence-focused cryptocurrencies led a market rally on Monday. Altcoins outperformed Bitcoin, the largest cryptocurrency by market capitalization. They were the top performers in the CoinDesk 20 Index. The index, a broad market benchmark, rose 1.5% during the same period. And the AI tokens were surging all the way. Near and Render, two AI-related tokens, posted gains of 18-20% over 24 hours. Bittensor, a decentralized machine learning protocol, saw its token climb 17%. Livepeer also made significant gains. Barry Silbert, CEO of Digital Currency Group, called it an "under the radar crypto AI play" on social media. Celestia, a blockchain data availability project, saw its token rise 12%. This followed news of a $100 million investment in its ecosystem development organization. The investment was led by Bain Capital Crypto. Democratic nominee Kamala Harris reportedly expressed support for innovative technologies at a fundraiser event. She mentioned AI and digital assets specifically. This may have contributed to positive sentiment in the crypto market. Meanwhile, Bitcoin struggled to reclaim the key 200-day moving average. It hovered just below $64,000, up less than 1%. Ethereum showed relative strength, it posted a 3.5% return over the same period. Traditional markets also showed strength. Gold hit new record prices, while stocks continued to rise following the Federal Reserve's interest rate cut - the Fed lowered rates by 50 basis points on Wednesday. Chicago Fed President Austan Goolsbee suggested more cuts may follow. "Over the next 12 months, we have a long way to come down to get the interest rate to something like neutral," Goolsbee said. The Fed's projections indicate a neutral rate close to 3%. This turn of events may lead to a further strengthening of the market.

Blockchain analytics firm Chainalysis predicts a shift in cryptocurrency regulation. CEO Michael Gronager envisions AI-driven oversight within five years. He shared his insights at a recent industry conference in Singapore. Gronager believes AI agents will soon scan blockchains for illicit activity. "It's not much further away," he told reporters. This technology could aid prosecutors and tax authorities in their investigations. The CEO sees crypto becoming the preferred method for solving financial crimes. He cites its scalability, ease of use, and transparency as key advantages. The international scope of blockchain data adds to its appeal for investigators. Gronager argues that AI automation would streamline the process. It could prevent overlapping efforts between government departments, and the technology might even identify tax evaders in the crypto space. However, those who cashed out years ago may escape scrutiny. Gronager acknowledges past challenges in crypto tax compliance. "There's a likelihood that you ended up not paying your tax, not because you didn't want to, but because you didn't know how to," he explained. The landscape has changed. Legal and software tools for crypto taxes have improved. Gronager believes this eliminates excuses for non-compliance. Some tax authorities already employ AI to track potential evaders. Privacy remains a concern in the industry. Gronager notes that mixer protocols and privacy-focused cryptocurrencies could hinder AI tracking. Yet, he reports that privacy transactions now account for less than 1% of all crypto activity. The absolute volume of crypto crime is growing, according to Chainalysis. A recent report from the firm reveals significant illicit fund movements. Nearly $100 billion has been transferred from known criminal wallets since 2019. Despite this, Gronager sees limited growth in privacy-focused cryptocurrencies. He contrasts their trajectory with the broader crypto market. "If you look at privacy coin growth over the last five to 10 years, that has not followed the same growth path as virtually everything else," he stated. The CEO's predictions suggest a future where blockchain transparency paradoxically enhances law enforcement capabilities. As AI technology advances, the crypto industry may face increased scrutiny and regulation.

Nvidia's latest earnings report has sent shockwaves through the AI crypto sector. The chip giant posted impressive numbers. But it wasn't enough to satisfy investors' lofty expectations. Major AI-related cryptocurrencies took a nosedive following the release. Artificial Superintelligence Alliance (FET) plummeted 7.8% to $1.1663. Bittensor (TAO) dropped 4.5% to $295.22. Render (RNDR) slid 6.8% to $5.47. Nvidia reported a whopping $30 billion in revenue for Q2 2024. This marked a 15% jump from the previous quarter. It also beat Wall Street estimates by $1.32 billion. But apparently, that wasn't good enough. Market commentator Lisa Abramowicz summed it up on X: "Better-than-expected doesn't cut it for Nvidia. Evidently, investors expect this company to blow away expectations." Some analysts had predicted Nvidia would smash estimates by at least 10%. Talk about high hopes. Nvidia's stock price felt the heat too. It closed at $125.61 on August 28. In after-hours trading, it tumbled another 6.89% to $116.95. This isn't the first time AI crypto tokens have been tied to Nvidia's performance. It's become a bit of a pattern. Some crypto folks saw it coming. One X user named "Shogun" called it days before: "You might catch gains being long until a day before, but I'd bet you're better off shorting for the dump after." Nvidia's chips are the backbone of AI model training and deployment. After its Q1 earnings in May, AI crypto tokens took a similar hit. This was despite Nvidia's Q1 revenue jumping 18% from the previous quarter. Bloomberg's Ed Ludlow weighed in: "The very lofty estimates were very lofty indeed." But he's not all doom and gloom. "The story is still intact. There is no demand issue here. Basically, the cloud computing providers, the hyperscalers we call them, that run datacenters, continue to spend on Nvidia's product." This latest drama comes on the heels of a wild ride for AI and big data crypto projects. Their market cap surged by 79.7% in just three weeks after "Crypto Black Monday" on August 5. That day saw Bitcoin dip below $50,000 for the first time since February. AI crypto's total market cap had hit a yearly low of $18.21 billion around that time. Talk about a rollercoaster.

AI startups are teaming up to run their services on blockchains. They're betting on decentralized tech to solve AI's development woes. This trend follows a big-money merger between Fetch.ai, SingularityNET and Ocean Protocol. The trio aims to challenge tech giants' AI dominance. Now, more players are jumping on the bandwagon. Lumerin, Morpheus and Exabits are the latest to join forces. Their goal? To build an "AI agent economy" powered by decentralized computing resources. Morpheus connects users with AI services and computing power. Lumerin manages data flow across the Morpheus network. It's also behind the core node software. Exabits provides the hardware muscle. It's a base-layer protocol for decentralized AI computing. This setup could revolutionize AI's future. The companies envision AI agents performing tasks across Web2 and Web3 ecosystems. "We're moving into a new paradigm of autonomous economies," says Ryan Condron, Lumerin's project leader. He's pretty stoked about the potential. The blockchain AI market is set to explode. Forecasts project growth to $703 million by 2025. That's a 25.3% compound annual growth rate. MIT researchers highlight issues in AI development. These include limited data access, inflexible models, and lack of transparency. "Centralized AI models are more prone to inherent biases," Lumerin claims. They also increase censorship and monopoly risks. Decentralized AI could boost privacy. User context wouldn't be stored by big players like ChatGPT or Gemini. But it's not all smooth sailing. Startups in this field face time and talent crunches. Condron admits the challenges. "Open-source software development for a decentralized network is very, very different," he says. Coordination and cohesiveness are tough nuts to crack. Doug Keeney, Exabits' CMO, is bullish on independent AI. "Owning our intelligence requires a decentralized approach," he argues. The race is on. These young guns are shaking up the AI world. Will they succeed in taking on the tech giants? Only time will tell.