Feb 19
10 Small-cap Upcoming Projects Merging AI, Blockchain and Crypto
The combination of crypto and Artificial Intelligence is one of the hottest sectors in the market. Here are 10 new and upcoming AI projects that are worth checking out.
AI is so hot right now, and so is the combination of profound tech with blockchains and cryptos. Although myriad projects had already been being built for years, ChatGPT’s mass breakthrough marked the start of the era of “AI-tokens”, a new sector that includes projects building AI applications and protocols with a native token.
The stellar performance of the sector over the past 12 months, with rapid appreciation of tokenized AI projects such as Bittensor, Fetch AI, Render, and Autonolas, has inspired numerous new projects to emerge. But as often with a new sector in crypto, many opportunistic projects are essentially just wrappers of other AI products with a token. However, the combination of the technologies has multiple unique and valuable use cases. This article serves as a guide to help you find interesting upcoming projects in the AI sector.
#1: AIT Protocol
By harnessing blockchain technology, the AIT Protocol establishes a decentralized labor market where individuals from across the globe can participate in data annotation and AI model training. Participants engage in "Train-to-Earn" tasks, earning rewards while contributing to AI model advancement. The platform's emphasis on community collaboration elevates the accuracy and relevance of annotated data, empowering users to shape the narrative of decentralized technologies while enjoying tangible benefits. AIT's vision is to lead decentralized machine learning, providing top-tier data annotation services and AI model training solutions to drive the evolution of artificial intelligence.
The native token of the AIT Protocol ecosystem, $AIT, serves as the platform currency for accessing various features such as paying for marketplace subscriptions, data processing, AI rental, and Launchpad participation. With a fixed supply of 1 billion tokens, $AIT facilitates the platform's functionalities and governance. AIT Protocol boasts partnerships with industry leaders like LayerZero, OKX Chain, and Shardeum, showcasing strong support and backing. The project has made significant strides since its inception, with key milestones including the development of the Data Labeling Protocol MVP, social media engagement, community growth, and strategic integrations. The roadmap outlines ambitious plans for further development, including expansion into Dataset as a Service (DaaS) and AI data marketplace domains.
#2: Paal AI
Paal AI’s mission is to demystify the often complex cryptocurrency environment through user-friendly, AI-powered solutions. The project offers personalized AI bots that specialize in crypto and can be directly used on popular communications channels like Telegram and Discord. Both individuals and communities can use these AI bots there directly to research projects, and tokens or do things like Technical Analysis for trading. Another use case is to integrate a customized Paal AI bot into your project’s community channels to help manage the chat.
The $PAAL Token, integral to the Paal AI ecosystem, is based on the Ethereum blockchain and has a total supply of one billion tokens. These tokens do more than just facilitate transactions; they're instrumental in supporting the project's growth and sustainability. A percentage of PAAL Token transactions is allocated towards initiatives like marketing, development, team enhancement, and broader ecosystem support, which includes funding startups, sharing revenue, and conducting token buybacks to augment its value. The project is driven by a team focused on merging AI and blockchain technologies, with a roadmap centered on continuous innovation and community engagement.
#3: AIgent X
In simple terms, the AIgentX project aims to simplify interactions within the crypto world using intuitive AI-driven solutions. Their vision is to make decentralized applications (dApps), blockchains, and other innovative products more accessible and user-friendly through a robust AI suite. By leveraging AI technology, the project offers solutions like AIgentXT for trading analysis, AIgentXS for support services, and AIgentXC for community management, all designed to streamline processes and enhance user experience.
The AIgentX token, $AIX now trades at about $20m in total market cap, a near all-time high. AIgentX is backed by partnerships with notable entities like TrendX, Sentiment AI, and Botcompiler, among others. Its recently achieved milestones include the launch of the AIX Radio and the AIX Open Beta Webapp. Future plans include expanding integrations with social media platforms, launching new analytics tools, and participating in grant programs.
#4: Botto
Botto is a decentralized autonomous artist that creates artwork based on input from the community. Botto's art engine generates over 4000 unique images weekly. These images, called "fragments," are presented to the community for feedback, and the most popular one is minted as an NFT (non-fungible token) for auction. The project aims to continue evolving Botto's capabilities by adding new generative models and themes while ensuring the DAO manages proceeds to sustain Botto's operations and reward community contributions.
ElevenYellow and Carbono developed the initial structure of Botto in collaboration with BottoDAO, the governing body of the Botto ecosystem. Quasimondo (Mario Klingemann) designed Botto's art engine, enforcing the rule of no direct human interference and ensuring Botto's autonomy. BottoDAO, comprising $BOTTO token holders, manages artist management tasks and governance decisions. Looking ahead, plans include improving the voting experience and exploring collaborations with digital fashion brands and generative music models.
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#5: EnqAI
EnqAI project aims to create unrestricted AI capabilities, encompassing image and audio generation as well as large language models (LLMs), all powered by a decentralized network of GPU nodes. Named after the Sumerian god of wisdom and creation, Enki, the project seeks to provide AI solutions free from biases, political agendas, and censorship. The backers envision a future where AI plays a pivotal role across various sectors, from entertainment to education, and ensures that these AI models remain transparent and unbiased. The enqAI token serves multiple functions within the ecosystem, including incentivizing node operators, providing discounts for inference clients, facilitating governance, and enhancing network security through staking.
The current status of the project involves the development and rollout of various components, with a roadmap that includes milestones such as the release of a beta LLM, decentralization of models, and the launch of ecosystem partners' applications. Looking ahead, enqAI plans to expand its offerings with features like an iOS app and further decentralization efforts, paving the way for a future where AI is truly accessible and unbiased.
#6: Delysium
Delysium, at its core, aims to create a seamless environment where artificial intelligence (AI) agents can interact, collaborate, and innovate within a secure and scalable ecosystem. Simplifying complex AI frameworks into two primary layers - the Communication Layer and the Blockchain Layer - Delysium fosters a community where AI agents can communicate swiftly and efficiently while ensuring governance, transparency, and trust through blockchain technology.
The project's token, $AGI plays a crucial role in this ecosystem by providing access to services, facilitating transactions, and ensuring accountability through identity verification and intelligent contracts. Currently, Delysium’s backers are focused on refining its architecture and expanding its network of AI agents and users. The roadmap over the next 1-2 years is to launch the testnet, onboard more AI developers, and enable more complex services between agents.
#7: Balance AI
Balance AI is like a super-smart marketplace where different AI helpers can team up to solve big problems. The project's vision is to create a safe and transparent marketplace where creators can share and monetize their AI models, driving innovation in fields like finance, healthcare, and more. The project's token, $BAI, plays a crucial role in this ecosystem by rewarding AI models based on the value they provide to the network.
Currently, the project is in the process of launching its Liquidity Bootstrapping Pool (LBP) to introduce the $BAI token to the market. This initiative aims to ensure a fair distribution of tokens and provide liquidity for exchanges. Looking ahead, Balance AI is focused on expanding its AI models marketplace and implementing features like a reputation system to ensure the quality and credibility of AI models.
#8: Virtuswap
VirtuSwap is an AI-powered Decentralized Exchange (DEX) designed to revolutionize trading in smaller-cap assets outside the top 5 cryptocurrencies. Traditional DEXs often require trades to go through a third asset, leading to double fees and price impacts. VirtuSwap's reserve-based virtual pools eliminate the need for triangular swaps, saving traders significant costs. Its AI Governance optimizes liquidity distribution between pools, ensuring optimal results for traders and liquidity providers.
$VRSW is a crucial component of VirtuSwap's ecosystem, functioning as a deflationary token distributed to the community over ten years. It rewards liquidity providers in VirtuSwap pools, boosts LP rewards through staking, and grants voting rights in the VirtuSwap DAO. Backed by institutional investors like GSR and Jane Street, as well as prominent individuals in the crypto space, VirtuSwap aims to expand its reach across multiple blockchains. The latest update in its roadmap is its AI-based liquidity optimization engine, Minerva.
#9: TAOpad
TaoPad is a cryptocurrency project that aims to enhance the BitTensor network's ecosystem through decentralized finance (DeFi) solutions, centered around its native token, $TAO. The project's primary focus is on building a launchpad for new projects within the Bittensor network, rewarding its community members through various mechanisms such as tax collection, buybacks, airdrops, and distributing bridge fees to $TPAD holders. With a capped supply of 1 million tokens and a significant portion already burned, TaoPad incentivizes token holders by allowing them to participate in token launches on the TaoPad Launchpad and invest in projects using $wTAO or ETH.
Currently, TaoPad has successfully launched its $TPAD token and secured liquidity on Uniswap v2. As the project progresses, it will deepen community engagement, secure additional exchange listings, and implement strategies for sustained growth and benefits to its ecosystem. With a clear roadmap and a focus on collaboration and innovation, TaoPad holds promising prospects for the future of decentralized finance within the BitTensor network.
#10: Mozaic
Mozaic simplifies yield farming by leveraging an intelligent AI named Archimedes to automate farming activities across multiple blockchains. Users can deposit and withdraw assets in any coin or LP token, while Archimedes optimizes yield by compounding and rebalancing assets to the highest APY pools hourly. The vision is to remove complexity from yield farming decisions, empowering users to achieve maximum profit with minimal effort. Mozaic operates independently of any VC investment and is funded by angel investors.
The protocol's token, MOZ, grants access to the Mozaic DAO and serves as an Omnichain Fungible Token (OFTv2). Additionally, xMOZ tokens enable users to participate in DAO governance and can be acquired by converting MOZ tokens. Currently, Mozaic is focused on implementing Active Liquidity Management (ALM), streamlining liquidity provision to V3 AMMs while mitigating risks like impermanent loss.
Closing thoughts on these Upcoming AI Crypto Projects
While the upcoming AI crypto projects discussed still have a long road ahead in terms of development and adoption, they showcase the creative potential of merging these spaces: AI, blockchain, and cryptocurrency. Some of the projects are still high-risk but as their governance matures, so will the risk-reward balance be more optimal for enthusiastic participants. There’s a lot of promise for reshaping industries.
Disclaimer: Nothing on this site should be construed as a financial investment recommendation. It’s important to understand that investing is a high-risk activity. Investments expose money to potential loss.
