Eric Wall, co-founder of Taproot Wizards, a Bitcoin-based NFT project, blasted Bittensor TAO/USD in an extensive social media post, labeling the popular artificial intelligence-related cryptocurrency as useless.
What Happened: Wall took to X (formerly Twitter) to outline his thesis, calling the cryptocurrency a “pointless exercise in decentralization” and saying TAO is “pretty much what a highschooler would think of if he was tasked with creating an AI coin.”
According to Choi, Bittensor’s system is highly inefficient, with thousands of miners doing the same basic task. Since the large language models used have similar content filters as ChatGPT, the “decentralized” aspect provides no additional utility.
Moreover, the tokenomics do not provide any actual utility, prompting Wall to conclude to “send it to 0.”
Wall’s stark critique was met with a mix of disbelief and agreement. Jason Choi, a venture capitalist and co-founder of Tangent, said the “majority of AI crypto coins are meme coins.”
According to Wall, the only two use cases for AI coins are GPU networks to solve supply constraints and provenance networks.
On the other hand, Dr. Martin Hiesboeck, Head of Research at Uphold, a multi-asset digital money platform, called Wall’s critique “one of the most misinformed, ignorant posts” and “hilariously dumb.”
Sami Kassab, a former Messari member, pointed out that Wall extrapolated from one subnet to make a judgement of the entire network and that not all miners are running the same model.
Wall did not reply to that but jokingly doubled down on his critique in another post, warning “TAO maxis” that he would “outlast” every one of them:
Read Also: Bitcoin Poised For Historic ‘Breakout’ With This One Last Step, Top Crypto Analyst Predicts
Why It Matters: Bittensor has recorded an impressive run-up in the past year, up 800% year-over-year. It is down 15% over the past 30 days, but has held up well in the face of Wall’s attack and a market-wide correction. It is up 4.5% over the past 24 hours, trading around $538 at the time of writing.
The best AI coins have been tipped for strong growth in 2024, with coins like Render RNDR/USD, Fetch FET/USD and Near Protocol NEAR/USD as frontrunners.
What’s Next: The impact of artificial intelligence on cryptocurrencies is a topic expected to be thoroughly explored at Benzinga’s upcoming Future of Digital Assets event on Nov. 19.
Read Next: Trader Who Urged Everyone To Buy $1 Of Bitcoin In 2013 Now Advocates For ‘Dogecoin Killer’ Shiba Inu
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© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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