According to Bloomberg, South Korean traders with a penchant for risk are increasingly investing in digital assets associated with artificial intelligence (AI). Data from Kaiko reveals that South Korea's share of global trading volumes for AI tokens surged to 18.7% in May, up from a mere 0.6% in mid-2023. These tokens are often launched by early-stage projects that aim to leverage blockchain technology for AI services, although the effectiveness of this combination is yet to be proven.
Research indicates a growing fascination with both AI and cryptocurrency among South Koreans, with approximately 10% of the population investing in digital assets. Data from the Korea Securities Depository shows that weekly trading volumes for AI tokens have averaged $8 billion since February, a significant increase from the all-time low of $300 million in mid-2023.
AI tokens such as Fetch.ai, SingularityNET, Akash Network, and Render have more than doubled in value since the beginning of 2024. For example, Render Network aims to establish a decentralized marketplace for the buying and selling of computing power for AI processing, utilizing blockchain technology for payment and data verification.
However, there are skeptics who question the sustainability of interest in AI-linked crypto projects. The digital asset sector is infamous for its volatile booms and busts, often tied to popular memes or social trends. Kaiko analysts have expressed uncertainty about the investment proposition of AI-affiliated tokens, despite Nvidia being viewed as a solid investment for exposure to the AI sector.