Cycles and narratives remain central themes in the global crypto market. While Bitcoin halving cycles historically guided trend analysis, the approval of Bitcoin and Ethereum spot ETFs has tightly coupled crypto with traditional financial markets—introducing more variables into market dynamics.
Amid this uncertainty, understanding cycles and identifying emerging narratives becomes critical. Investment institutions serve as pioneers in spotting innovation, making their insights invaluable. OKX's Crypto Evolution Series engages leading global crypto investors to explore market cycles, emerging trends, and high-potential sectors.
Below is our third installment, featuring perspectives from OKX Ventures, Polychain Capital, and Delphi Digital on the convergence of crypto and AI.
Key Participants
OKX Ventures
The investment arm of OKX, committed to advancing blockchain innovation with a $100M initial fund. Focus areas include global blockchain projects and cutting-edge technology supporting decentralized ecosystems.
👉 Discover more about OKX Ventures
Polychain Capital
A blockchain-focused investment firm optimizing portfolios for high returns through active management of blockchain assets.
Delphi Digital
A research-driven firm specializing in digital assets, offering insights via Delphi Research, Ventures, Creative, and Labs.
Part 1: The Intersection of Crypto and AI
Computing Power
OKX Ventures:
Centralized giants like Nvidia dominate AI computing power. Decentralized solutions (e.g., io.net, Prodia) leverage idle global resources to disrupt this monopoly. Projects like Compute Labs tokenize GPU assets, creating an "AI-Fi" ecosystem via RWA models.
Polychain Capital:
Blockchain enables provenance and value accrual for AI models. For instance, Ora’s Initial Model Offering (IMO) tokenizes models, allowing creators to monetize open-source contributions transparently.
Data & Privacy
OKX Ventures:
Crypto incentivizes data sharing (e.g., DePIN projects) while protecting privacy. Flock.io and Privasea.ai use federated learning to secure user data during model training.
Models & Applications
OKX Ventures:
Open-model markets could decentralize AI development. Projects like Myshell let users create AI agents, sharing profits with data providers—a sustainable flywheel.
Delphi Digital:
AI agents will thrive on blockchain’s autonomous frameworks, enabling complex DeFi tasks and governance. Privacy-preserving tech (e.g., zero-knowledge proofs) is critical for adoption.
Part 2: Investment Strategies
OKX Ventures’ Framework
- Market Demand: Prioritize real pain points over hype.
- Revenue Models: Avoid reliance on token/NFT sales; seek scalable revenue.
- Team Expertise: AI-crypto synergy requires deep technical crossover.
Polychain’s Outlook
Focus on infrastructure:
- Distributed training
- Verifiable inference
- AI agent protocols
Long-term potential lies in democratizing AI access via crypto incentives.
Delphi’s Stack Analysis
- Infrastructure: DePIN networks for cost-efficient hardware.
- Middleware: Modular AI ("Lego model") vs. closed-source giants.
- Applications: On-chain agents to bridge users and compute networks.
Part 3: Future Opportunities & Challenges
OKX Ventures
- Break tech monopolies via decentralized AI.
- Sustainability: Viable business models > narratives.
Polychain Capital
- Sentiment shifts: Crypto ETFs and AI governance gaps create openings.
- Regulatory agility remains key.
Delphi Digital
- Commoditization of models favors open-source ecosystems.
- Coordination challenges for AI networks present crypto’s biggest opportunity.
FAQ
Q1: Can decentralized AI compete with tech giants?
A: Yes—by leveraging crypto’s incentives and open-source collaboration to reduce costs and foster innovation.
Q2: What’s the biggest barrier for DeAI?
A: Capital-intensive infrastructure. However, decentralized training and modular designs are leveling the field.
Q3: How do investors evaluate crypto-AI projects?
A: Focus on real revenue, technical depth, and market demand over narratives.
👉 Explore AI’s future in crypto
Disclaimers
- OKX: View disclaimer.
- Delphi Digital: Transparency policy.