An Arweave-based computing protocol for artificial intelligence (AI) applications, AO, has attracted over $158 million worth of deposits within a week following its “fair launch.”
AO is a new protocol built on Arweave’s permanent data storage layer that enables parallel application running through a decentralized computational model. It will also enable AI applications to run onchain, enabling large language models to run within smart contracts.
The success and significant inflows for the AO token are attributed to the industry’s hunger for new technological solutions, according to Sam Williams, the founder of Arweave.
Williams told Cointelegraph:
“The launch of AO has generated a huge amount of building, usage and excitement. This has been reflected in the rapid growth of the network’s TVL. The industry is ready for something new, both in terms of tech and the economics of blockchain networks — and that is exactly what AO provides.”
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Fair launch tokens reflect ethos of crypto
Of the $158 million worth of total deposits, the AO token attracted the lion’s share, or $48 million worth of stETH on June 18, according to Dune data.
Beyond introducing an innovative parallel computing strategy, the token’s ‘fair launch’ model was another part of its success.
The AO token was minted without any venture capitalist, pre-sale, or pre-mining allocations, with 100% of the token supply allocated to the community.
The AO token’s fair launch is an effort to return to crypto’s original ethos of fair and equal access, according to Arweave’s Williams. He wrote:
“AO’s technology solves many of the core issues that have held crypto back from mass adoption, so we built economics to match that, too. Fair, equal access for all. No preferential treatment for anyone.”
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AI-related cryptocurrencies stage recovery
AI-related cryptocurrencies have been in the spotlight for most of 2024 as investors remain focused on finding the next significant AI applications. Some of the top AI-based cryptocurrencies started their recovery on June 20 after double-digit weekly drops.
The Near Protocol’s NEAR (NEAR) token recovered over 8.4% intraday after last week’s nearly 13% price decrease.
Fetch.ai’s FET token also rose over 23% in the past 24 hours, while SingularityNet’s AGIX token rallied over 23% in the 24 hours leading up to 12:25 pm UTC, according to CoinMarketCap data.
The total trading volume of AI-based cryptocurrencies rose over 14% to $2.68 billion, while their cumulative market capitalization rose over 7% to $30.9 billion.
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