This AI Token Is Up 170% This Year

This AI Token Is Up 170% This Year
Jonathan Hobbs

about 1 year ago1 min

With ChatGPT all the rage these days, it’s no wonder a crypto project called Fetch.AI is absolutely ripping: its FET token (blue line) is up about 170% so far this year, and quintupled in value since its low last November. But if there’s one thing OG crypto investors know, it’s that you don’t chase the rally.

The reason is that it's just flat-out risky: as the rally gets hotter, so does the potential for a bigger drop. After a massive move higher, most altcoins tend to give back between 50% and 80% of their gains before the next bounce – landing somewhere between the 0.5 and 0.786 Fibonacci retracement ratio (I wrote an explainer on the Fibonacci sequence here). So that’s your risk of buying in when an asset’s on a tear like this one – the possibility of a 50% to 80% drop at any point.

As for FET: it was trading at 5 cents in November and is sitting at around 25 cents now. If it doubled again from here to 50 cents, it would have gone up 10 times since its November low. So by buying in now, you’d essentially be taking a bet that it’s going to do a tenbagger from the low without a rollercoaster dip along the way. Sure, it's possible, but you’d be playing with fire by taking that bet.

The project itself is a decentralized network that’s trying to build a smart, autonomous economy by combining distributed ledger, AI, and machine learning technology. It’s complicated, but the TL;DR is that developers can build and train AI agents to make independent real-world economic decisions on the network on behalf of their human owners. Whether or not it succeeds, it’s safe to say the future is going to look very different.

Finimize

BECOME A SMARTER INVESTOR

All the daily investing news and insights you need in one subscription.

Disclaimer: These articles are provided for information purposes only. Occasionally, an opinion about whether to buy or sell a specific investment may be provided. The content is not intended to be a personal recommendation to buy or sell any financial instrument or product, or to adopt any investment strategy as it is not provided based on an assessment of your investing knowledge and experience, your financial situation or your investment objectives. The value of your investments, and the income derived from them, may go down as well as up. You may not get back all the money that you invest. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment advisor.

/3 Your free quarterly content is about to expire. Uncover the biggest trends and opportunities. Subscribe now for 50%. Cancel anytime.

Finimize
© Finimize Ltd. 2023. 10328011. 280 Bishopsgate, London, EC2M 4AG