Crypto AI Agents – Agentic AI Inspiration from the Crypto World

We are on the brink of an Agentic AI revolution. A brave new world of autonomous AI agents with human like thinking and learning ability, that are empowered to do useful things for us.

As many industries adjust to this new paradigm and begin to consider its implications and how best to take advantage of it, a few early adopters are leading the way and demonstrating what might be possible. Interestingly, the crypto industry was one of these first movers and earliest to capitalize on it, but perhaps not in the way you might think. They have some interesting use-cases, some of which may be applicable to the insurance world.

What is Agentic AI?

You can think of Agentic AI as an evolution of GenAI technology where AI Agents are empowered to operate autonomously and take actions on your behalf. These agents are granted access to tools such as public or private databases, the internet, other LLMs and AI models from which they can request information that they deem necessary to arrive at a better decision, and then they take appropriate actions such as executing a trade or updating a business transaction or sending a communication to your customers or even creating a post on social media. Each agent has memory and can reflect on past actions and outcomes. They use this to constantly improve and become increasingly specialized and effective in their focus areas. This suggests that there could be a first mover advantage for certain use-cases.

What does Agentic AI have to do with Crypto?

Crypto focused Agentic AI projects started to be appear in late 2023. Today, they have become one of one of the hottest trends or narratives for crypto traders. According to CoinGecko, a leading cryptocurrency data aggregator, there at least 1,363 AI Agent coins or tokens listed across the various crypto exchanges, with new ones being launched daily. The crypto investment community is super excited because of the enormous returns that many of these coins have generated in a very short period of time. For example, the leading token in this sector called “Virtuals Protocol” grew to a Market Cap of $5.12B in just over a year, providing a 24,000% return to early buyers of its tokens. A $100 investment would have been made you a multi-millionaire.

This in part explains the excitement around AI agents in the crypto community, but the underlying projects themselves are no less interesting and worth exploring.

In case you are wondering what tokens are, they are a key blockchain concept that allows for secure encrypted fractional ownership of any real world or digital asset, which can then can then be traded on crypto exchanges, similar to how shares are traded. The exception is that you can create and trade tokens on anything including artwork and collectibles, memes of your pets, as well as crypto currencies including Bitcoin, Ethereum and Solana. In this case, the AI Agent tokens represent businesses or projects that focus on creating innovative and useful Agentic AI solutions on blockchain.

The Role of AI Agents in Crypto

The industry is most excited about how AI Agents can help to simplify DeFi (Decentralized Finance) and accelerate the path to Web3.0 (the next version of the Word Wide Web that many are proposing should utilize decentralized blockchain frameworks and token-based economics).

Today, the main use cases are:

·Crypto Trading Agents: AI agents that can execute trades based on real-time market analysis, continuously optimizing trading strategies and maximizing profits on your behalf. They can work round-the-clock and are connected to exchanges using APIs to make trades based on predefined market parameters.

·Decentralized Finance (DeFi) Agents: Agents that can manage portfolios and execute complex financial transactions in DeFi.

·KOL (Key Opinion Leaders): Social media-savvy agents that interact on platforms like X (Twitter) to influence, learn and expand your brand. Some of these have access to their own wallets and have autonomy to purchase services from other agents or even human service providers. They can operate 24/7 without degrading performance and can engage with thousands of users simultaneously, offering personalized interactions to each.

·AI Agent Analysts: Agents that are constantly creating market insights by monitoring real-time data streams such as social metrics, on chain blockchain transactions and smart money flows. They provide real-time alerts to institutional investors as soon as they detect unusual movements and buy and sell opportunities in the crypto markets.

·Content Creating Agents Agents that create art, music and videos.

Interesting Crypto AI Agent Projects

·Virtuals Protocol: This is a blockchain project that acts as a launchpad for multiple AI Agent projects. These AI agents function like digital workers and can generate revenue through their activities. It enables the co-ownership of this ecosystem of AI agents which it shares with Token holders. Currently, there are 2200 agents are within this ecosystem.

·Zerebro: An AI agent specializing in content creation, particularly in the realms of music, memes, and NFTs. It's part of the Virtuals Protocol ecosystem, where it autonomously generates and shares creative content. Zerebro uses a retrieval-augmented generation system to create a dynamic "memory" from user interactions, which it then uses to craft new content like songs or visual art. It's known for its presence on platforms like Spotify, where it has released it’s own music and generated revenue.

·Kolin: Kolin is one of the first AI KOLs trained on real time data from a global community of crypto researchers and traders. Kolin also has exceptional conversational abilities, and is gaining a following by appearing on live YouTube and TikTok videos answering questions to human hosts and offering investment advice.

·AI16z: AI16z claim to be the first venture capital firm entirely led by AI agents based on decentralized investment management, blending community governance with AI-driven decision-making.It is managed by an AI persona named "Marc AIndreessen". A take on Marc Andreeson and his $4.2 billion VC firm called a16z.

·AIXBT by Virtuals: The leading AI-driven crypto market intelligence platform that uses advanced narrative detection to identify high-momentum plays in the cryptocurrency market. It automates the process of tracking and interpreting market trends, offering real-time insights. It has become known for its high success rate in crypto predictions.

·Synnax Technologies: A decentralized AI-driven platform for real-time credit intelligence. Their system offers predictive financial metrics and credit assessments for over 20,000 public companies, aiming to enhance transparency and accuracy in credit evaluations.