Here's AI Crypto's Price Reaction

Gamza Khanzadaev

Elon Musk’s xAI startup is about to reveal its cutting-edge AI model, but AI-focused cryptocurrencies take unexpected turn, deviating from typical patterns

Elon Musk's xAI Start-up to Launch Tomorrow: Here's AI Crypto's Price Reaction

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Elon Musk’s artificial intelligence start-up, xAI, is gearing up to launch its first AI model tomorrow, creating ripples of anticipation within the tech and crypto communities. Musk, who heads X , shared the news via social media, expressing confidence in the model’s capabilities, stating it is “the best that currently exists” in specific aspects.

Earlier this year, Musk vowed to introduce an AI model dedicated to seeing the maximum truth, challenging the efforts of major tech companies in the field. xAI boasts a team experts from Google’s DeepMind and other leading AI research firms.

Tomorrow, @xAI will release its first AI to a select group.
In some important respects, it is the best that currently exists.
— Elon Musk (@elonmusk) November 3, 2023

The start-up also collaborates closely with Tesla and X, underlining the synergy among these innovative entities. In a noteworthy development, xAI signed a contract in September to train its AI model on Oracle’s cloud, demonstrating the project’s strategic approach.

AI cryptocurrencies’ reaction

Surprisingly, the announcement failed to trigger the usual surge in AI-focused cryptocurrencies. Tokens like Injective (INJ), The Graph (GRT), Render (RNDR), Fetch (FET) and OCEAN showed minimal gains, while the broader AI and big data-focused token segment experienced a 6.22% decline in market cap over the past 24 hours, coupled with a 34.79% decrease in trading volume, according to CoinMarketCap data.

Unlike previous instances, where AI-related news led to significant market movements, this time, these tokens followed the broader crypto market trend, declining alongside Bitcoin and Ethereum.

The subdued reaction highlights the influence of general market dynamics, suggesting that, in this case, the hype around xAI’s AI model launch did not act as a significant catalyst for AI-focused cryptocurrencies.

About the author

Gamza Khanzadaev

Financial analyst, trader and crypto enthusiast.

Gamza graduated with a degree in finance and credit with a specialization in securities and financial derivatives. He then also completed a master’s program in banking and asset management.

He wants to have a hand in covering economic and fintech topics, as well as educate more people about cryptocurrencies and blockchain.

Source: https://u.today/elon-musks-xai-start-up-to-launch-tomorrow-heres-ai-cryptos-price-reaction