This year the artificial intelligence (AI) has become a pivotal point of interest, shaping the future of various industries. However, one particular sector that has been relatively slow to embrace this transformative duo is cryptocurrency. In this article, we’ll delve into the evolving landscape of crypto and AI and take a closer look at one Swiss company notable foray into this dynamic arena.
The Crypto-AI Nexus: An Emerging Frontier
The introduction of Transformer technology by Google in 2017, followed by OpenAI’s revolutionary ChatGPT, signalled the dawn of a new AI era. This technological wave is poised to leave no industry untouched, and the crypto sphere is no exception.
A glance at AI models like BloombergGPT or specialized LLM models designed for e-commerce and media sectors reveals a stark reality: crypto has been lagging behind in the AI race. Currently, AI-related projects constitute less than 3% of the total crypto market capitalization. However, the future tells a different story. The convergence of crypto and AI may well surpass the “fat protocol” hypothesis, giving rise to a “huge AI layer”. As Arthur Heyth of Bitmex suggests, the next bull run in the crypto space is poised to revolve around AI.
Identifying the First Movers
With every technological breakthrough, there are winners and losers. The early adopters, often referred to as “first movers,” stand a better chance of seizing market share and achieving substantial growth. The crypto industry is witnessing the emergence of such first movers right now, and among them is Swiss based company Smart Valor.
Founded in 2017 as a cryptocurrency exchange, Smart Valor swiftly expanded its offerings to include crypto-as-a-service for banks and API platform for merchants. An extraordinary milestone distinguishes this Switzerland-based company—it is the only exchange in Europe to secure approval from Nasdaq and attain public company status in 2021. The only other company which have achieved this is Coinbase.
Smart Valor’s Strategic Expansion into AI
In September, Smart Valor unveiled its AI venture under the brand ELONN.AI. Merely a month later, it launched its inaugural AI-powered service—an app designed for AI-based news analysis. This innovative application employs an algorithm developed in collaboration with Griffin AI team, which leverages OpenAI’s LLMs, to scan global news outlets. It rates articles based on a rigorous evaluation of 4,000 criteria, ensuring that only top-quality content reaches users. These articles are then presented in AI-generated summaries, tailored to the user’s preferred tone of voice, from crypto enthusiast to a simplified “tell me like I’m five” style.
Yet, ELONN.AI journey is far from complete. Plans include expanding data sources to include filtered crypto Twitter feeds, YouTube content, and professional research.
AI-Generated Research Reports: A Game-Changer
Smart Valor recently announced the imminent launch of AI-generated research reports delivered through Analyst AI-agents. Drawing parallels with the traditional investment landscape, where research analysts support investment managers, this innovation aims to provide every crypto investor with a personal research analyst. These AI agents will be on standby, ready to gather and analyze the information required for informed investment decisions.
The scale of this endeavour is undeniably ambitious, but Smart Valor’s approach is iterative and agile. Alongside AI-based news analysis, the current app offers “reports” that summarize price movements, market analysis, and pertinent news in real-time. Users can customize their selection by asset or segment and time period, receiving up-to-the-minute reports.
The Power Behind the Simplicity
While the user experience may seem straightforward, the underlying technology is anything but. Smart Valor’s AI algorithms scan hundreds of trusted sources, collecting historical and real-time price data. The finely tuned Large Language Model (LLM) processes this raw data into actionable insights and real-time market analysis.
While the app currently provides a limited range of reports in its free version, it has already garnered significant attention within the crypto community, amassing over 18,000 downloads in just first eight weeks—quite a testament to its success.
A Visionary Roadmap
In a video update, Olga Feldmeier, one of Smart Valor’s co-founders, revealed the roadmap for ELONN.AI. Feldmeier’s reputation in the crypto space is well-established, not just as a chairman of a Nasdaq-listed crypto company but also thanks to her pivotal role in obtaining the first bitcoin custodian regulatory license for Xapo in 2016.
The roadmap envisions expanding ELONN.AI’s functionality to include AI investment agents capable of handling close to 90% of research work. This evolution resembles the development of ChatGPT-like functionality—a conversational AI capable of collecting relevant sources and delivering analyses in the form of research reports or even engaging conversations, building on methods of natural language processing. The ultimate goal, according to Feldmeier, is to democratize access to personalized research support for every investor and investment advisor, eliminating the need for hiring professional analysts.
Market Response and Future Prospects
The trading community is taking notice of these ground-breaking developments. Smart Valor’s token, VALOR, surged by 70% on Bethumb within the last two weeks, one of Korea’s largest exchanges where it is listed. However, this uptick may only scratch the surface of its potential, especially as the team explores listings on additional exchanges, as hinted on their Telegram channels. Further exploration is needed to uncover the full extent of this project’s alpha potential. Nevertheless, Smart Valor, with its seven-year history and Nasdaq listing, coupled with its innovative AI applications, appears to be a resilient and promising player in the WEB3 AI space—a company poised to ascend to its rightful place among the market’s elite
In conclusion, Smart Valor’s journey into the realm of AI overall represents a significant stride for the crypto industry. While the path ahead is marked by challenges and innovation, the company’s commitment to marrying blockchain and AI technologies demonstrates its determination to shape the future of DeFi. As the crypto landscape continues to evolve, Smart Valor stands as a noteworthy example of progress, offering compelling solutions that have the potential to redefine how investors engage with the crypto market.