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Coinbase Powers First AI-to-AI Crypto Transaction

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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.

Evolution of AI Agents in Crypto-Economy.
Evolution of AI Agents in Crypto-Economy. Source: Mason Nystrom

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 ConditionsPrivacy Policy, and Disclaimers have been updated.



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BNB Price Faces More Downside—Can Bulls Step In?

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Aayush Jindal, a luminary in the world of financial markets, whose expertise spans over 15 illustrious years in the realms of Forex and cryptocurrency trading. Renowned for his unparalleled proficiency in providing technical analysis, Aayush is a trusted advisor and senior market expert to investors worldwide, guiding them through the intricate landscapes of modern finance with his keen insights and astute chart analysis.

From a young age, Aayush exhibited a natural aptitude for deciphering complex systems and unraveling patterns. Fueled by an insatiable curiosity for understanding market dynamics, he embarked on a journey that would lead him to become one of the foremost authorities in the fields of Forex and crypto trading. With a meticulous eye for detail and an unwavering commitment to excellence, Aayush honed his craft over the years, mastering the art of technical analysis and chart interpretation.
As a software engineer, Aayush harnesses the power of technology to optimize trading strategies and develop innovative solutions for navigating the volatile waters of financial markets. His background in software engineering has equipped him with a unique skill set, enabling him to leverage cutting-edge tools and algorithms to gain a competitive edge in an ever-evolving landscape.

In addition to his roles in finance and technology, Aayush serves as the director of a prestigious IT company, where he spearheads initiatives aimed at driving digital innovation and transformation. Under his visionary leadership, the company has flourished, cementing its position as a leader in the tech industry and paving the way for groundbreaking advancements in software development and IT solutions.

Despite his demanding professional commitments, Aayush is a firm believer in the importance of work-life balance. An avid traveler and adventurer, he finds solace in exploring new destinations, immersing himself in different cultures, and forging lasting memories along the way. Whether he’s trekking through the Himalayas, diving in the azure waters of the Maldives, or experiencing the vibrant energy of bustling metropolises, Aayush embraces every opportunity to broaden his horizons and create unforgettable experiences.

Aayush’s journey to success is marked by a relentless pursuit of excellence and a steadfast commitment to continuous learning and growth. His academic achievements are a testament to his dedication and passion for excellence, having completed his software engineering with honors and excelling in every department.

At his core, Aayush is driven by a profound passion for analyzing markets and uncovering profitable opportunities amidst volatility. Whether he’s poring over price charts, identifying key support and resistance levels, or providing insightful analysis to his clients and followers, Aayush’s unwavering dedication to his craft sets him apart as a true industry leader and a beacon of inspiration to aspiring traders around the globe.

In a world where uncertainty reigns supreme, Aayush Jindal stands as a guiding light, illuminating the path to financial success with his unparalleled expertise, unwavering integrity, and boundless enthusiasm for the markets.



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VanEck Sets Stage for BNB ETF with Official Trust Filing

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Global investment management firm VanEck has officially registered a statutory trust in Delaware for Binance’s BNB (BNB) exchange-traded fund (ETF). 

This move marks the first attempt to launch a spot BNB ETF in the United States. It could potentially open new avenues for institutional and retail investors to gain exposure to the asset through a regulated investment vehicle.

VanEck Moves Forward with BNB ETF 

The trust was registered on March 31 under the name “VanEck BNB ETF” with filing number 10148820. It was recorded on Delaware’s official state website.

VanEck BNB ETF Filing
VanEck BNB ETF Filing. Source: State of Delaware Official Website

The proposed BNB ETF would track the price of BNB. It is the native cryptocurrency of the BNB Chain ecosystem, developed by the cryptocurrency exchange Binance.

As per the latest data, BNB ranks as the fifth-largest cryptocurrency by market capitalization at $87.1 billion. Despite its significant market position, both BNB’s price and the broader cryptocurrency market have faced some challenges recently.

Over the past month, the altcoin’s value has declined 2.2%. At the time of writing, BNB was trading at $598. This represented a 1.7% dip in the last 24 hours, according to data from BeInCrypto. 

BNB Price Performance
BNB Price Performance. Source: BeInCrypto

While the trust filing hasn’t yet led to a price uptick, the community remains optimistic about the prospects of BNB, especially with this new development.

“Send BNB to the moon now,” an analyst posted on X (formerly Twitter).

The filing comes just weeks after VanEck made a similar move for Avalanche (AVAX). On March 10, VanEck registered a trust for an AVAX-focused ETF. 

This was quickly followed by the filing of an S-1 registration statement with the US Securities and Exchange Commission (SEC). Given this precedent, a similar S-1 filing for a BNB ETF could follow soon.

“A big step toward bringing BNB to US institutional investors!” another analyst wrote.

Meanwhile, the industry has seen an influx of crypto fund applications at the SEC following the election of a pro-crypto administration. In fact, a recent survey revealed that 71% of ETF investors are bullish on crypto and plan to increase their allocations to cryptocurrency ETFs in the next 12 months. 

“Three-quarters of allocators expect to increase their investment in cryptocurrency-focused ETFs over the next 12 months, with demand highest in Asia (80%), and the US (76%), in contrast to Europe (59%),” the survey revealed.

This growing interest in crypto ETFs could drive further demand for assets like BNB, making the VanEck BNB ETF a potentially significant product in the market.

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 ConditionsPrivacy Policy, and Disclaimers have been updated.



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XRP Recovery Stalls—Are Bears Still In Control?

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XRP price started a fresh decline from the $2.20 zone. The price is now consolidating and might face hurdles near the $2.120 level.

  • XRP price started a fresh decline after it failed to clear the $2.20 resistance zone.
  • The price is now trading below $2.150 and the 100-hourly Simple Moving Average.
  • There is a connecting bearish trend line forming with resistance at $2.120 on the hourly chart of the XRP/USD pair (data source from Kraken).
  • The pair might extend losses if it fails to clear the $2.20 resistance zone.

XRP Price Faces Rejection

XRP price failed to continue higher above the $2.20 resistance zone and reacted to the downside, like Bitcoin and Ethereum. The price declined below the $2.150 and $2.120 levels.

The bears were able to push the price below the 50% Fib retracement level of the recovery wave from the $2.023 swing low to the $2.199 high. There is also a connecting bearish trend line forming with resistance at $2.120 on the hourly chart of the XRP/USD pair.

The price is now trading below $2.150 and the 100-hourly Simple Moving Average. However, the bulls are now active near the $2.10 support level. They are protecting the 61.8% Fib retracement level of the recovery wave from the $2.023 swing low to the $2.199 high.

XRP Price

On the upside, the price might face resistance near the $2.120 level and the trend line zone. The first major resistance is near the $2.150 level. The next resistance is $2.20. A clear move above the $2.20 resistance might send the price toward the $2.240 resistance. Any more gains might send the price toward the $2.2650 resistance or even $2.2880 in the near term. The next major hurdle for the bulls might be $2.320.

Another Decline?

If XRP fails to clear the $2.150 resistance zone, it could start another decline. Initial support on the downside is near the $2.10 level. The next major support is near the $2.0650 level.

If there is a downside break and a close below the $2.0650 level, the price might continue to decline toward the $2.020 support. The next major support sits near the $2.00 zone.

Technical Indicators

Hourly MACD – The MACD for XRP/USD is now gaining pace in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for XRP/USD is now below the 50 level.

Major Support Levels – $2.10 and $2.050.

Major Resistance Levels – $2.120 and $2.20.



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