Grayscale launches decentralized AI fund with NEAR leading allocation. Read CoinChapter.com on Google News
Nairobi (CoinChapter.com) — Grayscale announced the launch of its Decentralized AI Fund on July 17, featuring a diverse portfolio of tokens. The fund includes Bittensor (TAO), Filecoin (FIL), Livepeer (LPT), Near (NEAR), and Render (RNDR).
Notably, NEAR holds the largest allocation, at 32.99%. The fund is exclusively available to accredited investors and emphasizes a strategic focus on decentralized AI assets.
Grayscale Launches Decentralized AI Fund. Source: X
The fund’s investment strategy revolves around three key categories: decentralized AI services, solutions to centralized AI issues, and AI infrastructure. These include chatbots, image-generation services, and decentralized marketplaces for data storage and GPU computation.
For instance, as of July 16, TAO comprised 2.92% of the basket’s assets. FIL followed at 30.59%, LPT at 8.64%, NEAR at 32.99%, and RNDR at 24.86%.
Moreover, Grayscale’s net asset value per share on July 17 stood at $9.87, with 55,300 shares outstanding. The fund holds approximately $551,238.97 in value. Each share represents specific amounts of NEAR, FIL, RNDR, LPT, and TAO, reflecting the diverse allocation within the fund.
Emerging Web3 Protocols Drive AI Innovations
An increasing number of Web3-based protocols are integrating AI. For instance, Sentient raised $85 million in June to develop an open-source AI platform. Additionally, another startup, Sahara, is creating a decentralized AI network for autonomous knowledge agents.
Additionally, Rayhaneh Sharif-Askary, Grayscale’s Head of Product & Research, highlighted the promise of decentralized AI, noting that blockchain-based AI protocols reflect the principles of decentralization, accessibility, and transparency.
Consequently, the fund aims to mitigate risks associated with centralized AI technology, promoting a democratized approach to AI development.
Within Grayscale’s portfolio, Bittensor offers a marketplace for AI model creation and training. Moreover, Filecoin provides decentralized storage for AI training data. Livepeer, built on Ethereum, uses AI for video transcoding and editing.
Meanwhile, Solana-based Render supports AI tasks requiring significant GPU resources, such as training deep learning models.
Market Reaction to Grayscale’s AI Fund Launch
The announcement of Grayscale’s Decentralized AI Fund influenced the value of several AI tokens. LPT saw the most significant increase, rising almost 10% to $17.27 before settling at $16.34. TAO rose over 5%, while RNDR and FIL gained around 2%. NEAR, despite initial gains, declined by 2%.
Top AI tokens by market cap. Source: CoinMarketCap
The broader market also experienced fluctuations. Aventis Metaverse AVTM surged 71%, with other top gainers like HashAI and EnqAI seeing substantial increases. Fetch.ai and Injective recorded smaller gains. The AI token market has outperformed major cryptocurrencies like Bitcoin, Ethereum, and Solana over the past week.
Crypto Narratives. Source: DefiLlama
As the crypto market rebounds, the AI narrative picks up steam, leaping 24.2% over the past seven days, according to data aggregator DefiLlama. The average growth of AI tokens outshined Bitcoin and Ethereum by more than 10%, and Solana by 9%.
Nvidia shares hit an all-time high on June 14th, reflecting the broader enthusiasm for AI. AI-related startups captured $33 billion in funding during the first half of 2024, setting a record.
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