With Nvidia up 80% this year, are there any AI crypto tokens you should buy now?

For cryptocurrency investors, nvidia (NVDA -5.55%) It has become the only stock to watch for clues about the future direction of artificial intelligence (AI) cryptocurrency tokens. As Nvidia’s stock changes, so does the AI ​​crypto token market.

So, as NVIDIA stock price soared after February’s huge earnings report, AI cryptocurrency tokens are also soaring. Some are up 300% in the past month, all driven by renewed excitement about the AI ​​market. But are any of these AI crypto tokens actually worth buying?

What is Fetch.ai?

Recognizing that artificial intelligence is still in its early stages, the AI ​​cryptocurrency token I am currently focusing on is Fetch.ai (FETs 10.61%)That’s an increase of nearly 400% in the last 30 days and almost 300% so far this year. As of March 7, Fetch.ai’s market capitalization was $2.2 billion, ranking 51st among all cryptocurrencies by overall market capitalization.

The goal of the token is to create an open network for AI agents to build, deploy, and monetize AI. That’s just a word, but what it really means is that Fetch wants to provide a marketplace for paid AI services.

Whenever you need a task performed by an AI bot, you can theoretically go to the Fetch.ai marketplace and hire the right person to do the job. You then use Fetch crypto tokens to pay for the service.

Fetch.ai vs. ChatGPT

What makes Fetch interesting is that it is very similar to the concept of the new ChatGPT Store. You can now hire custom AI bots to perform specific tasks. Given that far more people know about ChatGPT than Fetch.ai, we’re not entirely convinced the cryptocurrency should be worth $2.2 billion, but we can see why some investors are excited about its long-term prospects.

Image source: Getty Images.

What’s interesting is whether Fetch can sell companies (e.g. giant corporations) on this AI bot concept. One of the new partners is Deutsche Telekom, which is exploring potential uses for AI bots.

This could be a great example of an AI bot providing utility at scale, and ties into the whole idea of ​​investing in Nvidia in the first place. After all, big blue chips like Deutsche Telekom are the companies that buy Nvidia’s semiconductors and use its data centers.

Note for investors

If you want to benefit from the long-term convergence of AI and cryptocurrency, you need to make sure you do your due diligence on this space. Otherwise, we could end up in the same situation we saw with Metaverse crypto tokens in 2021-22.

Investors sensed a huge market opportunity around Metaverse, and several large Metaverse cryptocurrency tokens eventually achieved market capitalizations in the billions of dollars. But no one is buying Metaverse cryptocurrency tokens these days.

That’s because Metaverse cryptocurrency tokens haven’t found a way to attract more than young gamers and early adopters of the technology. Big brands opened stores in the metaverse in hopes of finding new customers and new revenue streams, but things never went as planned.

This is one of the concerns I have with Fetch.ai. Sure, the idea of ​​using paid AI bots sounds great, but will it appeal to a mainstream audience? It would be great to see more examples of people actually using the Fetch.ai bot in their daily lives.

Should you buy Nvidia instead?

If I had to choose just one AI cryptocurrency token right now, it would be Fetch.ai. At a cost of just over $2 per token, you can theoretically access nearly unlimited upside if the use cases for autonomous AI agents in the enterprise market proceed as expected.

In other words, risk-averse investors may be better off focusing on blue chip names in the AI ​​market, such as Nvidia, rather than attempting speculative bets on AI cryptocurrency tokens they’ve never heard of. Picking a winner in an emerging technology market is always risky, so for now I’m sticking with Nvidia, which is up more than 80% this year, as the best way to play into the future of AI.