Why Investors Should Be Paying Attention to AGI
Perhaps the only buzzword more popular than blockchain is artificial intelligence (AI). More startups are popping up that employ the technology, and Ethereum is basically an early decentralized AI platform.
The main issue is that it is difficult to bring AI to the masses, or even to businesses. Amazon Web Services has done this in a sense, but not to the degree that is necessary. The technology is already out there, but is not very accessible, which is why a bridge is required. This is where SingularityNET comes in.
A Complex Platform
First off, explaining SingularityNET in its entirety is not possible in just one piece. However, we can provide a simpler explanation that will suffice for most. There are two main problems SingularityNET aims to solve. First, researchers don’t always have a robust enough data set to test and develop their machine learning programs. Second, businesses often want much more customized solutions than a mass market solution could provide. As you can see, this creates an opportunity for a market to be created.
The company bills itself as a marketplace where AI services can be monetized at scale. As as decentralized AI network, it will enable creators of AI services to share and earn money on their work. The three main areas the project would like to focus on are cloud robotics, cybersecurity, and biomedical research.
API’s and self-organizing AI is utilized to facilitate the smooth trading of services for AGI or other services. The goal is to make use of the platform as simple as possible for businesses looking for that technological edge.
SingularityNET’s proprietary coin, AGI, is a utility coin that buys AI computation. Additionally, the governance method is designed so that users must use tokens to vote on certain resolutions, which creates additional demand for AGI. One such resolution is when SingularityNET should move their platform to a network other than Ethereum (it is currently an ERC20 token).
This, along with the staking method used to validate Agents, is what ensures the long-term viability of the network. Agents are those responsible for executing smart contracts for the platform. They stake coins in order to earn the right, and may lose tokens if their rating falls due to any issues the counterparties might experience.
Short-Term or Long-Term?
AGI is available on Binance and is currently ranked 131 in terms of market capitalization. From launch in January 2018, the coin has been almost entirely experiencing a down market, although September represents the nadir of its performance.
It is in a slight uptrend and has been attempting to break the 1200 satoshi level for a while now. However, each time it does, it quickly drops back below this level. Right now, it is at a weekly low that I think represents an ideal buy zone. Anything under 1200 satoshis is good, and if it moves into a bull run, we can expect it to break 1400 satoshis shortly thereafter.
Although a short-term trade, the governance and staking functions of AGI will continually increase scarcity, which does give it some bullish long-term pressures. The same “max supply” constraints apply here as they do to other coins, but that would still result in additional upward pushes.
Disclaimer: The author owns Bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
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