[Daily] NFTs are getting smarter

Good morning! Welcome to The Daily Moon. It’s a brand new week. Today we're all about NFTs. Yuga Labs, the company that publishes Bored Apes, has hired a new CEO. They have parachuted the COO of gaming company Activision Blizzard to run the NFT project. They are getting serious about the game, eh? Good on ‘em.

Moving on, today we talk about AI powering NFTs and Elon Musk is in trouble again.

As of Sunday, 1:30PM IST

The markets saw mixed moves. Bitcoin was under pressure following the options contracts' expiry. Ethereum saw profit booking ahead of the Shanghai mainnet launch. S&P 500 and Nasdaq ended higher on active buying in technology stocks. Back home, Sensex and Nifty rose on FII buying.  

NFTs Finding Intelligence?

What good is an Ape? Does it even bring bragging rights? What is its ultimate use case? There has to be more to it than plastering it all over Twitter? How much can you pay for vanity? Scratch that. A lot. 

But NFTs are bound to evolve, what feels normal to us now was absurd last year and that’s the pace with which NFTs seem to be evolving. The AI madness has seeped into NFTs and there might be something to it this time around. 

Let’s get into itThe first use case, like always is vanity, street cred, camaraderie, take your pick. But the way AI NFTs are shaping up, it does have little to do with what you want to do with it. These NFTs are embedded with GPT3, which means they’re constantly evolving and can generate images, text and even video depending on the input. When GPT-3 is inbuilt into the smart contracts, NFTs can be made a little more immersive and unique. 

More than vanity, what’s the use case?Apart from an ever changing avatar on social media, NFTs can have real world uses that can generate revenue. 

1. Altering art: Artists who can create and update NFTs simply through AI. For example, if you have created an AI-NFT representing summer fashion, it can be transformed into winter clothing digital art when the season changes. Unstoppable Domains has launched an AI-generated NFT project where you can mint an avatar and sell it online.

2. Two-factor authentication: Most digital logins require double authentication to confirm your identity. An AI-NFT can possibly replace codes and passwords since it can be altered based on the platform. Platforms such as Unstoppable Domains have started offering NFT logins.This can be further tweaked to update the latest information using AI.

3. Medical records: AI has already made its presence felt in healthcare. A step forward will be an amalgamation of AI and NFT to store and update health records and emergency requirements on-chain. Take the case of Bloodchain, a project that uses NFTs to avoid bottlenecks in collection of biological products such as blood and breast milk. On the sidelines, they also use AI to predict demand for blood from hospitals. The merger of AI and NFTs here can make the process seamless.  

Is there a flipside?Intelligent NFTs are not immune to biases and misinformation, so we cannot rule out a situation where the system goes rogue. The likes of Elon Musk and Steve Wozniak have urged companies to pause advanced AI experiments for at least six months. There’s a fear that the machines will soon go out of control. 

We’re just glad the use cases have started to evolve.

Elon Isn’t Running A Pyramid Scheme

So he insists and wants a $258 million lawsuit accusing him of running a Dogecoin pyramid scheme dismissed. 

Wait, what?The CEO of Tesla and the new owner of Twitter had a suit filed against him for allegedly running a Dogecoin pyramid scheme. The champion of free speech has been sued in NY for pumping up the price of Doge over 36,000% and then dumping it. He is accused of causing financial loss to millions of investors even though he knew that the token had no value. 

Elon insists tweets like, "Dogecoin Rulz" and "no highs, no lows, only Doge", were just silly tweets and didn’t amount to anything. 

Let that sink in.

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