Since the Chinese New Year, the AI market in the cryptocurrency market has shown a prosperous scene, with continuous popularity ranking first. With OpenAI’s latest text to video Sora being the trigger, a series of AI concept tokens such as Sora and Wld have led the market in strong gains. Therefore, whether this round of AI fever is sustainable and how to evaluate investment opportunities in this track will be analyzed one by one in the following text.
Sora Unveiled, Ushering in a New Era of Artificial Intelligence?
During the Spring Festival, OpenAI actively led the trend of AI chip investment and launched a new non open source product Sora for text generated videos, which sparked a series of AI tokens such as Sora, a meme coin with the same name, and the project Wld by OpenAI founder Ultraman.
Some people have commented that the emergence of Sora is characterized by “60s ultra long length,” single video multi angle shots,” and “world models,” heralding the arrival of a new era of visual narrative. It can transform people’s imagination into vivid dynamic images, and transform the magic of text into a visual feast.
Sora is an advanced artificial intelligence model developed by the American artificial intelligence research institution OpenAI, which can generate corresponding videos based on text descriptions provided by users. Sora’s technological foundation is built on the text to image generation model DALL-E of OpenAI, and through further research and optimization, it has achieved the ability to convert text to video.
However, regarding the training data of the model, OpenAI has not disclosed the specific quantity and exact source, only revealing that this data includes publicly available videos and copyrighted videos authorized specifically for training purposes.
Although Sora still uses the Transformer architecture and diffusion model, its biggest innovation lies in its ability to accurately present natural laws such as flame reflection and object motion inertia in generated videos. Compared to other diffusion models, Sora’s video output exhibits extremely high stability and coherence. Therefore, the AI videos it presents provide users with a coherent, logical, and highly enjoyable experience. It is worth mentioning that Sora still follows the scaling law of AI. OpenAI clearly points out in the technical documentation that with the increase of training computation, the sample quality has significantly improved, further confirming the arrival of the multimodal era.
In addition to Sora, Nvidia has also released the highly anticipated AI local deployment tool Chat with RTX as scheduled. Meanwhile Google has upgraded Gemini and released version 1.5. As a result, the positive progress of the global AI sector has greatly stimulated the popularity of the crypto market AI sector, especially Sora, which quickly became popular due to its infinite creativity represented by the Japanese word “empty,” excellent effects, and simple practicality, Once launched, it quickly drove the overall success of the AI sector in the cryptocurrency market.
The AI Sector’s Tokens Led the Rise, with the Highest Popularity in Wld
As of the writing date, the AI sector has hit new highs with Wednesday’s NVIDIA financial report far exceeding expectations, but its popularity still ranks high among various sectors. According to the Gate.io market, in terms of market value, the top three are Bittensor (TAO), Render (RNDR), and Fetch.ai (FET), with market values of $3.9B, $2.8B, and $1.1B, respectively.
Source: Gate.io
When it comes to the most popular Worldcoin (WLD), it is necessary for us to explain the basic background. The project was initiated by OpenAI founder Ultraman, and the project team has built a device called Orb, which can capture an image of a person’s eye and convert it into a short numerical code. It has recently received attention from Vitalik.
It is not difficult to see from the price chart that since the release of Sora, WLD price has skyrocketed from the lowest $2.1 to the highest $8.4, with a market value comparable to Fetch.ai (FET).
Source: Gate.io
In fact, WLD itself is not the AI sector token but the biggest beneficiary, and the significant rise in coin prices is mostly due to the frenzy caused by its association with the founder of OpenAI.
The more orthodox AI token is Livepeer (LPT), and after the release of Sora, the price of the coin quickly soared, increasing by over 60%.
Livepeer is a decentralized video streaming network based on the Ethereum blockchain. Due to the large amount of GPU (graphics processing unit) computing power required to generate high-quality video content and the high cost, the increase in LPT token prices reflects the increasing demand for high-quality video generation in the market. Meanwhile, the Livepeer community is planning to integrate its network with text generated video technology in the coming months. Although the specific timeline and details have not yet been announced, this plan is expected to further enhance the value of LPT tokens.
In addition, SingularityNET (AGIX), as a platform that allows for large-scale creation, sharing, and monetization of AI services, has experienced significant growth in its native token AGIX, with an increase of over 30%.
According to the latest statistics from CoinMarketCap, the total market value of the AI&Big Data segment reached $23B, with a total of 237 tokens, of which 197 tokens have been priced and traded online, accounting for 1.19% of the total crypto market value.
Can the Popularity of the AI Sector Continue and What is its Investment Value?
Of course, based on past experience, the popularity of no sector in the cryptocurrency market can remain unchanged. With the decline of profit taking hype and the rise of risks in artificial intelligence, the popularity of the AI sector may adjust.
The innovation of AI technology has brought both enormous opportunities and potential risks. To ensure its security before using Sora technology, OpenAI has taken a series of security measures. They are collaborating with members of the red team to assess the risks in key areas using Sora and inviting visual artists, designers, and filmmakers to provide feedback to optimize the practicality of the model for creative professionals.
However, OpenAI also warns that despite extensive research and testing, it is still difficult to predict how users will benefit or abuse the technology. In fact, some argue that this technology may be exploited by cryptofraudsters. Scammers may use Sora to create fake celebrity endorsement videos, videos with bias or incorrect information, and spread them widely through social media platforms.
Source: @OpenAI
In addition, there are also some projects that impersonate AI names that may take advantage of traffic advantages to launch, and the risks and hidden dangers in these aspects are worth investors being vigilant about.
When we review the popularity of the AI track as a whole, it is not difficult to find that the larger macro background is that as the cryptocurrency market becomes increasingly mature, people’s expectations continue to rise. Especially with the upcoming halving of Bitcoin in April and the launch of Sora, the market’s attention has reached a new height.
The rise of artificial intelligence in the field of cryptocurrency is not accidental. As early as the first quarter of 2023, the rise of new technologies such as ChatGPT and MidJourney brought the first takeoff for artificial intelligence cryptocurrencies. These technologies not only lead a new wave of technology but also drive technologies like Fetch The surge in AI tokens such as AI (FET), SingularityNet (AGIX), and even DePIN sectors such as Akash (AKT).
Overall, the emergence of Sora, an innovative technology that began in 2024, has reignited market enthusiasm for AI technology, attracting the attention of investors and technology enthusiasts, together with the attention of numerous Altcoins and Meme coins closely related to AI technology. Investors should also pay attention to short-term fluctuations to reduce speculative risks while closely following this “thick slope and long snow” investment opportunity.
