AI Coins Crash As Investors Panic
The AI coins market has taken a severe beating in the early trading hours of the Asia market on Monday, as China’s AI startup DeepSeek stormed the market by building AI models that cost just a fraction of what the Silicon Valley behemoths are spending. Top artificial intelligence coins like Near Protocol (NEAR), Internet Computer (ICP), Render (RENDER), and Filecoin (FIL) have collapsed 8-10% today as the Nasdaq 100 futures see a 330 points crash in the overnight trading session on Sunday.
AI Coins Crash As Investors Panic
The AI coins market has tanked by more than 7.66% in the last 24 hours with the total market cap falling under $44 billion, as per data from CoinMarketCap. The data further shows that top AI coins have collapsed an average of between 8-10%.
Notably, this correction comes as part of the broader crypto market crash as the Bitcoin price drops all the way to the crucial support of $100K levels.
China’s DeepSeek AI Model Storms Market
The Chinese AI startup has taken the Silicon Valley tech behemoths to task. Training advanced AI models like GPT-4 or Claude typically demands massive budgets, with companies like OpenAI and Anthropic spending over $100 million on computing alone. These efforts rely on massive data centers filled with thousands of GPUs, each costing upwards of $40,000—akin to needing a dedicated power plant to fuel a factory.
On the other hand, the Chinese AI startup has turned heads by achieving comparable or superior performance to GPT-4 and Claude for a fraction of the cost i.e. just $6 million. Furthermore, it’s built using AI chips that are far less advanced than what US AI companies have been using.
Former BitMEX CEO Arthur Hayes has questioned the US AI dominance noting:
“A thot: what if the rise of Deepseek causes global investors to question US exceptionalism. What if they question y they are over weight US tech vs the world and why they are over weight US bonds vs the world?”
As the DeepSeek app takes the top spot in downloads on the Apple Store, chip stocks in the US have given an overnight reaction. Top companies like Qualcomm (QCOM), Nvidia (NVDA), Arm (ARM), and Broadcom (AVGO) are down by 2-7% today, further intensifying the AI coins dip.
Conclusion
In conclusion, the AI coins market has taken a severe beating in the early trading hours of the Asia market on Monday, as China’s AI startup DeepSeek stormed the market by building AI models that cost just a fraction of what the Silicon Valley behemoths are spending. The correction comes as part of the broader crypto market crash as the Bitcoin price drops all the way to the crucial support of $100K levels.
FAQs
Q: What is the reason behind the AI coins crash?
A: The AI coins crash is attributed to the rise of China’s AI startup DeepSeek, which has built AI models that cost just a fraction of what the Silicon Valley behemoths are spending.
Q: What is the impact of the AI coins crash on the broader crypto market?
A: The AI coins crash is part of the broader crypto market crash, as the Bitcoin price drops all the way to the crucial support of $100K levels.
Q: What is the significance of the DeepSeek app taking the top spot in downloads on the Apple Store?
A: The DeepSeek app taking the top spot in downloads on the Apple Store is a significant indicator of its popularity and potential impact on the AI coins market.
Q: What is the future outlook for the AI coins market?
A: The future outlook for the AI coins market is uncertain, but it is likely to be influenced by the rise of China’s AI startup DeepSeek and the broader crypto market trends.
