AI Token — What’s Their Utility?

Moonrock Capital
5 min readFeb 8


Recent years have seen a dramatic increase in interest in artificial intelligence (AI). The advent of artificial intelligence could fundamentally alter a wide range of industries, including the crypto industry. As part of the project of decentralized finance (DeFi), it is viewed by enthusiasts as a key component of a new financial and social ecosystem. The fact that many new cryptocurrency projects are closely entwined with AI is not surprising. In the following sections, we explore AI tokens in more detail and look at a few popular examples.

As the name implies, AI tokens are cryptocurrencies that use artificial intelligence to improve a variety of factors, including security, user experience, scale, and scalability. AI can theoretically be trained to automate and build trust or efficiency in many crypto systems. In addition to powering AI-based applications or projects, AI tokens can also be used to power decentralized marketplaces or exchanges, image or text generation services, and investment protocols that are based on AI. With this article we want to show you the challenges and benefits of AI token and talk about some interesting projects.

The Rise Of ChatGPT

ChatGPT, a chatbot developed by OpenAI, has created a buzz in the crypto space, business, education and other industries since its launch in mid-2020, with a surge in popularity in late 2022.

The bot’s ability to generate human-like text and perform various language tasks has drawn attention to its potential to disrupt the crypto market. Justin Sun, creator of the TRON blockchain and token, has proposed an AI-based decentralized payment framework using ChatGPT. The widespread adoption of ChatGPT has sparked interest in AI technology, leading to Microsoft investing $10 billion in OpenAI, ChatGPT’s developer. This has driven up the value of certain AI tokens, with some experiencing 75% gains or more. As of early February 2023, the total market value of AI tokens was around $1.6 billion, which is growing rapidly due to increasing investment from institutional investors.

Challenges And Opportunities In The AI Space

The AI token market is in its early stages and faces challenges that may impact its growth and adoption. One of the biggest challenges is regulatory uncertainty, as there are no clear regulations for the cryptocurrency market, including AI tokens. This unpredictability deters projects and investors. Another challenge is a lack of public awareness about AI and cryptocurrency, which makes it difficult for projects to attract investment and for the market to grow. Additionally, the market faces competition from both the cryptocurrency and AI industries. However, there are also growth opportunities in the AI token market, such as the potential for innovative solutions like AI-driven DAOs. As the market evolves, demand and innovation opportunities for AI tokens are expected to increase. Let’s have a look into some use cases from existing projects.


$FET is the currency used within the system. Fetch is a decentralized platform that enables the creation of intelligent and autonomous software and tools, including data analytics, decision-making, and prediction bots. If you want to pay for services provided by, you pay in $FET. Much like you use USD to buy services in the United States.


AGIX is a well-known AI token and the native currency of the SingularityNET platform. It’s used by SingularityNET throughout the platform for transaction management and decentralized community governance. SingularityNET is a decentralized, open-source blockchain marketplace that allows users to purchase and sell a range of AI-based products and services. The platform enables the exchange of models, data, and other tools used to train AI, making it both driven by and beneficial for AI.


$ALI, which stands for Artificial Liquid Intelligence, is the token used by the Alethea image generator. Alethea creates images using AI, taking user input into consideration. It is well-known for CharacterGPT, an AI protocol that generates interactive characters using text descriptions. $ALI tokens are used for generating character NFTs, upgrades, incentives, and transactions within the platform.


$NMR is a token linked to Numerai, a decentralized hedge fund that uses AI. Numerai leverages predictions from global data scientists to make investment decisions, rewarding contributors with $NMR tokens for their accuracy.


$HERA is a token connected to the Pathfinder algorithm of the same name. It helps DeFi participants identify the most profitable and efficient trading routes on decentralized exchanges using machine learning algorithms that analyze various data such as prices, liquidity, and trading volumes. Holding $HERA tokens grants users governance rights in the project and a share of its protocol revenue.


The utility of AI tokens is uncertain in terms of current demand, but the future looks promising for AI tokens in the crypto market, as many experts predict substantial growth in the coming years and most tokens in the sector are showing an upward trend (at the time of writing).

AI tokens have the potential to transform the decentralized AI marketplace, portfolio management, and AI-powered autonomous organizations.

However, like any new technology, there are obstacles to overcome and opportunities to grasp. As the market continues to develop, it is crucial to monitor key players and projects and understand the potential impact of regulatory changes.

The recent success of OpenAI, coupled with Microsoft’s significant investment, highlights that AI is here to stay. The integration of AI with cryptocurrency is still to be determined, but it will be fascinating to see how these technologies interact to shape the world.

Who We Are

Moonrock Capital is a Blockchain Advisory and Investment Firm, incubating and accelerating early stage startups since 2019.



Disclaimer: None of the information contained here constitutes an offer (or solicitation of an offer) to buy or sell any currency, product or financial instrument, to make any investment, or to participate in any particular trading strategy.



Moonrock Capital

Moonrock Capital is a Blockchain Advisory and Investment Firm, incubating and accelerating early stage startups since 2019.