Market
Coinbase Powers First AI-to-AI Crypto Transaction
On August 30, 2024, Coinbase, the US’ largest publicly traded crypto exchange, managed the first AI-to-AI crypto transaction.
This milestone, announced by Coinbase’s CEO Brian Armstrong, represents a significant leap toward a future where artificial intelligence’s intersection with the crypto industry is becoming more evident.
Coinbase Leverages AI Agents for Transactions in a Decentralized Economy
Coinbase conducted its first AI-to-AI crypto transactions using the Base Sepolia Network. Known for its scalability and low transaction costs, Base Sepolia provided the ideal environment for this event.
Coinbase employed its advanced Multi-Party Computation (MPC) technology to create a secure AI agent wallet. This ensured the transaction remained controlled and tamper-proof.
After creating and funding a wallet using a faucet method, the AI agent could seamlessly transfer crypto assets to another wallet. This wallet could belong to either a human user or another AI agent. It demonstrated the versatility and potential of AI-to-AI transactions in a decentralized ecosystem.
Read more: How Will Artificial Intelligence (AI) Transform Crypto?
The concept of AI agents conducting transactions autonomously is revolutionary. Traditionally, AI has been limited to processing information and making decisions based on pre-programmed algorithms. However, with the ability to manage and transfer assets without human oversight, AI agents can now operate within decentralized financial systems.
This development enables AI agents to transact with other AI entities, humans, and merchants. Furthermore, it allows AI agents to acquire resources, pay for services, and perform tasks that require financial transactions. All of these transactions can happen without human intervention.
“This is an important step for AIs to get useful work done. Today, if you give an AI agent a task and come back in a few days or hours, it can’t get useful work done. In part, this is a limitation of the technology itself, and products like devin.ai are getting closer to this. But the other reason is that AIs can’t transact to acquire the resources they need. They don’t have a credit card to use AWS, Github, or Vercel. They don’t have a payment method to book you the plane ticket or hotel for your upcoming trip. They can’t get through paywalls (for instance, to read a scientific article), promote their post on X with a paid ad, or use the growing network of paid APIs to integrate the data they need,” Armstrong elaborated.
AI Agents in the Crypto Economy: Opportunities and Obstacles Ahead
In a December 2023 report, Mason Nystrom, a Junior Partner at Pantera Capital, noted how bots have evolved into “robust AI agents” capable of autonomously handling complex tasks and making well-informed decisions. Nystrom also emphasized that building AI agents on cryptonative rails offers several key advantages. One of the primary benefits is AI agents’ ability to access capital through native payment rails, such as cryptocurrencies.
“Crypto rails present a meaningful improvement for giving AI agents access to capital over having them obtain access to bank accounts or payment processors (e.g. Stripe), or deal with the vast majority of other inefficiencies that exist in our offchain world,” he wrote.
Additionally, AI agents with wallet ownership gain the ability to hold digital assets, such as NFTs or yield-bearing tokens. This grants them digital property rights inherent to crypto assets. Such capability is particularly important for agent-to-agent transactions, where verifiable and deterministic actions are crucial.
“On-chain transactions are deterministic in nature—they either happened or didn’t—which means AI agents will be able to more accurately complete tasks on-chain than off-chain,” he remarked.
Despite AI agents’ promise in the crypto economy, Nystrom also identified significant challenges and limitations. One major limitation is that AI agents need to perform complex logic off-chain to optimize efficiency.
While on-chain transactions are deterministic and verifiable, the computational logic required for decision-making and task execution often needs to be processed off-chain. This condition introduces a layer of complexity and potential vulnerability, as the off-chain components may not have the same level of security and transparency as on-chain transactions.
Additionally, the quality of the tools given directly influences the effectiveness of AI agents. For example, an AI agent tasked with summarizing real-time news events needs access to web scraping tools, while an agent that engages in trading requires a wallet with key signing permissions. This reliance on external tools means that the capabilities of AI agents are inherently limited by the resources and infrastructure available to them.
Moreover, ensuring these tools are secure, reliable, and integrated seamlessly with blockchain technology remains a significant challenge.
Read more: AI in Finance: Top 8 Artificial Intelligence Use Cases for 2024
Coinbase’s latest initiative also strengthens the narrative of the intersection between AI and crypto, specifically blockchain. According to a January report from Grayscale Research, the intersection of AI and crypto could offer significant benefits in mitigating societal issues associated with AI. These problems include spreading misinformation and deepfakes.
Galaxy Digital Research adds another dimension to this discussion. It points out that blockchains can serve as a transparent, data-rich environment that AI models require for optimal performance. Although blockchains have limited computational capacity, their transparency and decentralized nature make them ideal for integrating AI in a way that enhances both security and trust.
Disclaimer
In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
Market
Polymarket Faces Ban in France as US Election Betting Ends
According to a report from The Big Whale, the National Gaming Authority (ANJ), France’s gambling regulator, is preparing to block the prediction markets platform Polymarket.
Polymarket, the decentralized platform that allows users to bet on the outcome of political events, sports, and other occurrences using cryptocurrency, has gained popularity in recent months, especially with bets surrounding the US presidential election. More than $3.2 billion was reportedly wagered on the platform during this high-stakes period, with a record-breaking $294 million in volume on November 5 alone.
France Users May No Longer Access Polymarket
According to The Big Whale, a French website that covers the crypto industry, the ANJ’s impending ban comes after a French trader placed a $30 million bet on a Trump victory, reportedly attracting the regulator’s scrutiny.
The trader’s wager positioned him to make approximately $19 million in profits, a sum that has intensified concerns over Polymarket’s compliance with French gambling laws. A source close to the ANJ stated that despite Polymarket’s use of blockchain and cryptocurrency, its activities are akin to gambling, making it subject to restrictions under French law.
“We are aware of this site and we are currently examining its operation as well as its compliance with French gambling legislation,” The Big Whale reported, citing an ANJ spokesperson.
Read more: What is Polymarket? A Guide to The Popular Prediction Market
Legal expert William O’Rorke from ORWL Avocats explained that although Polymarket does not specifically target French users, its activities fall squarely under gambling regulations.
“Polymarket involves betting money on uncertain outcomes, which aligns with the legal definition of gambling,” O’Rorke noted.
Against this backdrop, the ANJ is well within its mandate to block the platform’s access in France. Accordingly, the French regulator may enforce the ban by blocking Polymarket’s domain name in France. It amy also pressure third-party players, like media outlets and online directories, to limit access to Polymarket links.
However, French users may still circumvent this by using virtual private networks (VPNs). This is because Polymarket’s crypto-based infrastructure allows for relatively anonymous participation.
France’s looming ban is not the first regulatory roadblock Polymarket has encountered. In 2022, the US Commodity Futures Trading Commission (CFTC) fined Polymarket $1.4 million for failing to register as a designated contract market. The CFTC also challenged Kalshi’s operations due to questions about betting on political events.
Polymarket’s Fate After US Elections
Meanwhile, the US election was a significant catalyst for Polymarket. It drove the platform to new heights in user engagement and bet volume. Polymarket’s election-related markets have been featured on major financial platforms, including Bloomberg, highlighting the platform’s appeal to mainstream finance.
As BeInCrypto reported, Polymarket’s election betting topped $3 billion, reflecting unprecedented participation. The platform, however, faces a crossroads in its path forward. Following the climax of the US election on Wednesday, data from Dune Analytics shows a steep decline in Polymarket’s activity.
Daily active addresses and transaction volumes, which soared in the election lead-up, have notably dwindled as election-related betting winds down. For instance, Polymarket’s open interest, a key indicator of active betting engagement, dropped from $350 million to $268 million after the polls closed. Similarly, monthly new accounts have also dropped by over 41% between October and November.
Against this backdrop, Polymarket may need to diversify its market offerings or potentially embrace a new model to maintain user interest. This is considering election-related activity comprised the majority of the prediction market’s volume.
Rumors are circulating about a potential move toward a decentralized governance token, which could distribute control over Polymarket’s operations to its community. This shift would reduce the liability of the central authority by decentralizing decision-making, though it remains theoretical, with no clear timeline.
Read More: How To Use Polymarket In The United States: Step-by-Step Guide
Polymarket’s fast ascent and regulatory challenges highlight broader industry tensions between innovation and compliance. With election predictions no longer a draw and an impending ban in France, Polymarket’s future remains uncertain.
Its long-term viability may depend on how well it adapts to evolving regulatory landscapes and whether it can maintain popularity beyond election season peaks.
Disclaimer
In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
Market
XRP Price Ready to Rally? Signs Point to a Bullish Move
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Market
Solana (SOL) Rallies Strongly, Setting Sights on $200
Solana started a fresh increase above the $172 support zone. SOL price is rising and might soon aim for a move toward the $200 level.
- SOL price started a fresh increase after it settled above the $165 level against the US Dollar.
- The price is now trading above $172 and the 100-hourly simple moving average.
- There was a break above a key bearish trend line with resistance at $162 on the hourly chart of the SOL/USD pair (data source from Kraken).
- The pair could continue to rise if it clears the $192 resistance zone.
Solana Price Starts Fresh Rally
Solana price formed a support base and started a fresh increase above the $162 level like Bitcoin and Ethereum. There was a strong move above the $165 and $172 resistance levels.
There was a break above a key bearish trend line with resistance at $162 on the hourly chart of the SOL/USD pair. The price even cleared the $185 level. A high is formed at $192 and the price is now consolidating gains. It is trading above the 23.6% Fib retracement level of the upward move from the $155 swing low to the $192 high.
Solana is now trading above $172 and the 100-hourly simple moving average. On the upside, the price is facing resistance near the $192 level. The next major resistance is near the $195 level.
The main resistance could be $200. A successful close above the $200 resistance level could set the pace for another steady increase. The next key resistance is $212. Any more gains might send the price toward the $220 level.
Another Dip in SOL?
If SOL fails to rise above the $192 resistance, it could start a downside correction. Initial support on the downside is near the $188 level. The first major support is near the $180 level.
A break below the $180 level might send the price toward the $172 zone or the 50% Fib retracement level of the upward move from the $155 swing low to the $192 high. If there is a close below the $172 support, the price could decline toward the $165 support in the near term.
Technical Indicators
Hourly MACD – The MACD for SOL/USD is gaining pace in the bullish zone.
Hourly Hours RSI (Relative Strength Index) – The RSI for SOL/USD is above the 50 level.
Major Support Levels – $188 and $185.
Major Resistance Levels – $192 and $200.
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