By comparing the present investment wave to earlier booms, Erick Demuth, Bitpanda’s CEO, said the crypto bros are currently AI bros.
BitPanda Executive Warns Against Artificial Intelligence Infancy
Bitpanda’s chief executive officer, Eric Demuth, has envisaged that only 2% of firms generating money based on artificial intelligence’s (AI) hype will survive. Amidst the enthusiasm associated with the technology and the flooding of investment into this sector, Eric revealed that a lot of good artificial intelligence stuff is yet to come. However, the present cycle is similar to earlier booms.
In an interview during the Sifted Summit 2023 in London, Demuth said the situation resembles other hypes, for instance, those involving blockchain, nonfungible tokens (NFTs), and web3. He added that similar to earlier hype cycles, the boom’s end will result in a massive clear-out. Ultimately, 2% or less will survive.
Bitpanda Pursuing AI-enhanced Products Eyeing Retail Clients
Despite the pessimistic forecast, Bitpanda, of which Eric is a cofounder, is developing its AI projects. In May, it introduced a $10M division devoted to this technology. So far, the unit is seeking to generate AI-enhanced products, which include tailored investing features as well as a custom-made wealth manager for its investing platform.
On Wednesday, Eric claimed they have been doing some artificial intelligence with their internal processes for some time. Concerning fraud deterrence and internal operations, excellent tools exist. As such, they are prepared to utilize the initial artificial intelligence things for retail clients.
Eric also said that the fading of tech hype cycles offers serious players an opportunity to build, and this has already been seen in crypto. All the crazy individuals are boarding the next train and allowing grownups to develop stuff. Currently, crypto bros are artificial intelligence bros.
Crypto Not Overlooked Despite Artificial Intelligence Craze
According to Eric, this is the most appropriate time for banks, as well as other legacy financial companies, to arrive at financial innovation. He considers that present entry into the space is ideal, considering that the present crypto market lull provides downtime to ‘truly integrate and develop it.’ He also said that building while there is demand is not a good idea since it will be too late, thus the need to start now.
Eric added that the absence of regulation has held back major banks until recently. So far, introducing the European Union’s momentous crypto bill would bring the clarity sought by crypto talents and innovations. Also, other jurisdictions, such as Singapore and Hong Kong, have realized remarkable success in refining their regulatory framework.
Earlier in the year, Bitpanda revealed its partnership with Coinbase to provide a back-end solution to institutions to enable them to provide crypto services to their clients.
Editorial credit: Ralf Liebhold / Shutterstock.com
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