Weekly AI #15
With the 15th issue of Weekly AI, it's time for changes. Keeping pace with the rapidly evolving AI landscape can cause us to lose sight of what is truly interesting. I fully agree that the progress of technology, applications, and all the happenings in the AI world is exponential, or perhaps even doubly exponential.
To illustrate what this means, consider this: you're 30 steps from your house's front door. If each step doubles in length from the previous, then by the 30th step, you've not only reached your door but circled the Earth multiple times. This illustrates how quickly things can escalate in an exponential system. That's precisely what's happening with AI development. Each day and week, we hear about new discoveries and applications.
The swift advancement in AI can often make us feel like we're exploring an immense, uncharted universe without a map. To bring some clarity, I'm reshaping my newsletter, "Transcending Boundaries of AI and Web3", to concentrate on its fundamental themes. These central themes encompass the cross-section of cryptocurrency, NFTs, and the broader Web3 concept. Therefore, the future editions of Weekly AI will be dedicated to this intersection of AI and Web3.
Reading other AI newsletters, I see that the majority of them cover what's happening in the market and provide accurate, compelling information about the AI universe. There's no point in repeating information that's readily available elsewhere.
So, from this issue, Weekly AI will focus on developments in the world of crypto, NFTs, and the entire Web3 realm, all through the lens of AI. I hope this new niche will interest you, my readers, who often read my posts on blockchain-related projects and technologies.
There will also be a change to the format of Weekly AI. Each issue will be shorter, dedicated to a single project or topic. The "The Art of Life Through the Eyes of AI" summaries will disappear from Weekly AI. However, I'll continue to publish them in a different format, initially on Twitter. Over time, this will change as the project continues to evolve. If you're interested in this project, as well as my daily 'GM' posts created with Generative AI, I encourage you to follow me on Twitter.
To conclude this introduction, I hope you will enjoy this new format. I welcome any comments and feedback on the revised form. Without you, my dear readers, this newsletter wouldn't exist, so you are the most vital part of this journey.
Now, let's move on to the topic of the 15th issue of Weekly AI.
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Kyber AI: Unleashing the Power of AI in the Crypto World
In the rapidly evolving world of cryptocurrencies, staying ahead of the curve requires more than just market knowledge. It requires innovative tools that can analyze, predict, and present data in a way that's easy to understand and act upon. One such tool making waves in the crypto world is KyberAI, a product of the renowned Kyber Network.
The Genesis of Kyber Network
My ongoing adventure with crypto began a few months before Kyber Network conducted its ICO in 2017. However, it caught my attention in 2019 because it was one of the few interesting projects in the EOS ecosystem (Ethereum - EOS bridge) in which I was heavily involved at the time.
The Singapore-based Kyber Network was launched in 2017, envisioning a future where any token is usable anywhere. This vision was supported by a successful Initial Coin Offering (ICO) that raised $52 million, exceeding its fundraising goal of $46 million. This success attested to strong investor interest and belief in the project's potential.
After I withdrew from EOS, Kyber Network temporarily disappeared from my radar. It re-emerged when I looked for swaps of rarely used token pairs. I was pleasantly surprised by the multitude of tokens supported by Kyber Swap and its capability to switch between different chains like Arbitrum, BNB, Polygon, Ethereum, and others.
Kyber Network operates as a Decentralized Autonomous Organization (DAO), a democratic model where the network is managed by its community of users. This model ensures the network remains transparent, fair, and responsive to the needs of its users. The DAO oversees the network's parameters and the allocation of funds, promoting the network's growth and evolution to benefit all its users.
The Advent of KyberAI
I regained interest in the Kyber Network project due to their latest development, KyberAI. Thanks to slappjakke.eth and the Kyber Network team's courtesy, I obtained early access to the project. It’s currently in the Alpha stage, and it's available to a selected group of testers. But don't worry; you can apply for Alpha access at https://kyberswap.com/KyberAI/About using my referral code 18922514FA0 as proof that you have read this article.
KyberAI is a groundbreaking tool that employs artificial intelligence (AI) to provide profound insights into the cryptocurrency market. It assists investors in their daily quest for high-potential tokens and in monitoring their portfolios.
The application of AI in analyzing large datasets of on-chain transactions, liquidity, holders, and many other aspects for technical analysis and predicting trends for individual projects piqued my interest.
KyberAI employs a unique scoring system, KyberScore, which rates cryptocurrencies from 0 to 100 based on their on-chain and technical indicators. A high score indicates a bullish prediction for the next 24 hours, while a low score suggests a bearish outlook. The score is updated every four hours, offering users real-time insights into each cryptocurrency's market sentiment.
The AI Advantage in KyberAI
KyberAI is a robust data tool suite that harnesses artificial intelligence (AI) and machine learning (ML) to provide crucial trading insights. This advanced tool aids users in discovering hidden trends and making data-driven decisions, consolidating market data from both on-chain and off-chain sources.
The AI software, trained with data from over 2,000 tokens and considering many variables, results in more accurate and comprehensive scoring. But the AI doesn't just crunch numbers; it learns and adapts. By analyzing past data, it predicts future trends, enhancing its predictive capabilities with each new data piece.
A standout feature of KyberAI is its predictive analytics. It uses AI and ML algorithms to predict a token's potential direction - bullish, bearish, or neutral - in the next 24 hours. This feature is invaluable for traders aiming to time their trades to maximize profits and minimize losses.
KyberAI's predictive analytics extend beyond that, including on-chain and technical indicators to predict trends in trading volume, netflow to whale wallets, and other key indicators. This comprehensive market view equips traders with the insights needed to make informed decisions.
Despite its advanced capabilities, KyberAI retains a user-friendly design. It offers a range of tools that simplify data exploration and insight generation. Users can delve deep into token data, discover trending tokens, and add tokens to their watchlist. The system also provides notifications for users' favorite tokens, ensuring they never miss vital market movements.
KyberAI's universal design supports over 4,000 tokens deployed across seven chains, including Ethereum, Binance Smart Chain, Polygon, and others. This extensive coverage ensures users can gain insights into a wide range of tokens, not just the popular ones.
KyberAI's suite includes three main products: KyberScore, Token Rankings, and Explore. KyberScore, a crucial component, gathers on-chain and off-chain data and translates it into a score predicting a token's direction over the next 24 hours. The Token Rankings and Explore features allow users to discover and analyze tokens based on various metrics and indicators.
KyberScore reflects the probability of a token entering bullish or bearish territory over the next 24 hours. It ranges from 0-100, with a score closer to 100 indicating a likely price increase in the token over the next 24 hours and vice versa. KyberScores are recalculated every 4 hours based on multiple on-chain and off-chain data points.
KyberAI's data sets include netflow to CEX, netflow to whale wallets, the number of transfers, and the number of holders for on-chain data. The off-chain data integrates OHLCV (Open, High, Low, Close, and Volume, which are common indicators used in technical analysis of financial markets, including cryptocurrency markets) to optimize the KyberScore model's predictive capacity further.
KyberAI has undergone extensive backtesting with various trading strategies. The results indicate that strategies using KyberScore thresholds consistently outperform a standard holding strategy, demonstrating KyberScore's effectiveness in predicting a token's price movement in the next 24 hours.
KyberAI is an innovative tool that brings AI power to crypto trading. It offers valuable insights and predictions to help traders make more informed decisions. However, like any tool, it must be used wisely. While KyberAI provides valuable insights, it's not a guarantee of success. It's vital to use it as one of many tools in your research arsenal, not blindly trusting its predictions. Begin with small amounts if you want to trade using indicators like this until you're more comfortable.
In conclusion, Kyber Network has made significant strides since its ICO in 2017. It has evolved from a simple swap service to a comprehensive DeFi platform, and with KyberAI's introduction, it's positioned to revolutionize crypto trading. As the crypto market continues to expand and evolve, tools like KyberAI will become increasingly crucial in helping traders navigate crypto trading's complexity.
As I continue exploring KyberAI, you can expect more articles about this innovative system as it evolves. I will also incorporate insights from KyberAI into my analyses, some of which might appear in my future publications. Stay tuned for more insights and deep dives into the world of AI-powered Web3.