AI computing protocol raises $158 million in week after ‘fair launch’
Arwave-based computing protocol for artificial intelligence (AI) applications, Ao, has attracted more than $158 million in deposits within a week of its “fair launch”.
AO is a new protocol built on Arwave's persistent data storage layer that allows parallel applications to run in a decentralized computing model. It also enables AI applications to run on-chain, allowing large language models to run in smart contracts.
According to Arwave founder Sam Williams, AO Token's success and significant revenue is due to the industry's hunger for new technology solutions.
Williams told Cointelegraph:
“The launch of AO has generated a huge amount of build, use and excitement. This is reflected in the rapid growth of the network TVL. The industry is ready for something new, both in technology and the economics of blockchain networks – and that's exactly what AO delivers.”
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Fair launch tokens reflect the crypto style
Of the $158 million in total deposits, the AO token attracted the lion's share, or $48 million worth of stETH on June 18, according to Dune data.
Apart from introducing an innovative parallel computing strategy, the token's ‘fair launch' model was another part of its success.
AO Token is 100% token supply allocated to the community without any venture capitalist, pre-sale or pre-mining allocation.
The fair launch of AO Token is an effort to bring back the fair and equal use of crypto to the core, Arwave Williams said. wrote:
“AO technology solves many of the core issues that have held crypto back from mass adoption, so we've built the economics to match. Fair, equal access for all. There is no priority treatment for anyone.
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The rate of recovery of AI-related cryptocurrencies
AI-related cryptocurrencies will be in focus for most of 2024 as investors focus on discovering the next important AI applications. Some top AI-based cryptocurrencies started to recover after double-digit weekly drops on June 20.
Proximity Protocol (Proximity) token recovered more than 8.4% after a nearly 13% price drop during the day.
Fetch.ai's FET token is also up more than 23 percent in the past 24 hours, while SingularityNet's AGIX token is up 23 percent in the 24 hours to 12:25 pm UTC, according to CoinMarketCap data.
The total trading volume of AI-based cryptocurrencies increased by more than 14% to $2.68 billion, while their aggregate market capitalization grew by more than 7% to $30.9 billion.
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